July

25

Hard road for foreign travel agencies in China

by silvia.spessato

categories Inbound trends Rules & Law

tags travel agencies 

Even though the golden age of Chinese outbound tourism has begun, strict legislation still limits any effort by non-Chinese companies to take advantage of this market from inside mainland China. This is in spite of the small steps that Beijing has taken over the years to meet the requirements of the World Trade Organization (WTO).

INBOUND TRAVEL AGENCY MARKET IS OPEN - The Travel Agency Regulations came into effect in 2009 to address this topic; it was later complemented by the Tourism Law of the People’s Republic of China in 2013. Concerning inbound tourism, legal requirements and duties differentiations between local and foreign agencies are fallen within the recent laws. Instead, for what concerns the outbound market, as a general thing pointed out by China Blawg, “tourism business is restricted to travel agencies established for at least two years that have not been found to have infringed on the legal rights and interests of tourists.” Here ends the commitments shared between Chinese agencies and outsiders.

BURDENSOME LIMITATIONS FOR OUTBOUND – In regards to outbound tourism, regulations forbid foreign-invested travel agencies from selling travel services to Chinese citizens going overseas, including travel to Hong Kong, Macau, and Taiwan. Infractions will result in the requisition of all income but it doesn’t end here: if the illegal profit is more than ¥100,000, a fine of up to five times the illegal income can be inflicted. If it is lower, the fine will range between ¥100,000 and ¥500,000. In the worst-case scenario, the government can revoke the travel agency’s business permit.

THE NARROW PATH - Such measures compromise the chance for foreign investors to operate in the Chinese outbound market, at least for agencies fully controlled by outsiders. The only way to get around this seems to be setting up a joint venture with a Chinese partner (there are no limits on shareholding), and not necessarily with a Chinese travel agency, “although it is better to partner with Chinese travel agency, of course.”

Got Something To Say:

Your email address will not be published. Required fields are marked *

*

CATEGORIES

Recent Comments

Commented by Bill Frankish, 29.08.2017

We at the Candlewood Suites Calgary Airport North, closely located to the Calgary airport YYC, have been certified by the China Tourism Academy as having reached the JADE STANDARD of "Welcome Chinese" Certification. As such we greet each guest with a special Welcome envelope with Chinese information on our extended stay hotel. Guests receive slippers, tea, and have access to kettles and rice cookers at no charge. Some items are available in our little convenience store called The Cupboard, and there is a Chinese Super Market about 2 kilometers away which has a full selection of food items, commonly found in China, including live fish. Also at the same shopping area, an authentic Chinese Restaurant called The T. Pot , China Bistro From our location we have easy access to main highways to take you to Banff National Park, or the Royal Tyrrell Museum, an excellent Dinosaur museum. Candlewood Suites is an excellent location with cooking facilities which provides a great home base as you travel to various attractions in the area.