China Modifies Administration on Travel Agencies

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Last updated at: (Beijing Time) Friday, December 21, 2001

China Modifies Administration on Travel Agencies

A modification on administration of travel agencies in China was announced Thursday and will be effective January 1, 2002. It was signed by Chinese Premier Zhu Rongji recently.

A modification on administration of travel agencies in China was announced Thursday and will be effective January 1, 2002. It was signed by Chinese Premier Zhu Rongji recently. (Full text in Chinese)

According to the modification, travel agencies will be divided into two categories: those for international tours and those for domestic travel.

A special section was added on the management of "foreign-funded agencies," referring to Sino-foreign joint ventures as well as cooperation firms between Chinese and overseas investors.

The minimum registered capital of Sino-foreign joint venture tourist agencies has been set at four million yuan (about 480,000 U.S.dollars)

Foreign travel agencies must meet a number of requirements. They must be set up in accordance with the law and have no record of illegal activities over the past three years. Their annual tourist income should be above 40 million US dollars. They should be members of tourist associations of respective countries, and they are allowed to organize both overseas and domestic tours.

China's Administration on Joint Venture Travel Services

China issued a provisional regulation for the establishments of pilot joint venture travel services at the end of 1998. (Full text, Chinese version)

A total of nine such ventures have so far been formed, but many small and medium-sized travel agencies still complain about the regulation��s rigid and demanding terms, for instance, not allowing these joint ventures to do outbound business, or demanding the Chinese party holds at least 51 per cent of the registered capital.

But with the provisional regulation coming under revision and with more relaxed terms expected, more Chinese tour operators are likely to join hands with foreign partners.

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