A hotel industry group yesterday blasted the Government for subsidising guest houses by raising the licence fees of hotels. At a Legislative Council panel meeting, hotel representatives unhappy with government-proposed revisions to the licence fees spoke out about the changes which they say are unfair. On the new fee scale, an international hotel has to pay more than $110,000 a year while a guest house pays $2,800. Michael Li Hon-shing, executive director of the Hong Kong Federation of Hotel Owners, said that hotels were, in effect, paying to license unlicensed guest houses and holiday flats. But Francis Lo Chi-wai, the principal assistant secretary for Home Affairs, stressed that there would be no subsidies from hotels to guest houses.