Licence fees for small and medium-sized hotels will be cut by up to 65 per cent, according to government plans gazetted yesterday. The Government also plans to simplify the application process by replacing the current annually renewed licence with seven-year licences. The moves come a day after the Federation of Hotel Owners urged the Government to cut red tape. The suggestions were included in proposals drawn up by the federation and submitted to the Tourism Commissioner. Hotel operators say it takes at least 30 licences and permits for a normal hotel to start business. According to the proposed scales of licence fees gazetted yesterday, a hotel with 101 to 200 rooms will pay $76,580 for a seven-year licence, compared to $220,220 under the existing scale. The proposed licence fee for guesthouses with six to nine rooms will be cut by 38 per cent to $8,150 for a three-year licence, compared to $13,050. The new arrangement would be introduced in the Hotel and Guesthouse Accommodation (Fees) (Amendment) Regulation 2001.