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TRAVEL AND TOURISM
Following a recommendation of the Public Accounts Committee of the Legislative Council, a review of the outbound travel industry was begun in 1994, to assess the willingness and capability of the council to act as a self-regulatory body. The review will have particular regard to whether its board of directors has been properly reconstituted into a more broadly-based and representative governing body and is able to regulate its members without undue influence from groups with vested interests; and whether its executive arm has been adequately strengthened to perform more regulatory functions independently, especially in relation to the financial surveillance of its members. The Travel Industry Council, Advisory Committee on Travel Agents, Consumer Council and other concerned parties have been consulted on the parameters and methodology for the review, which is scheduled for completion in March 1995.
Under the Travel Agents Ordinance, the Registrar is empowered to conduct an investigation into the business of a licensed travel agent if he suspects that the business is being carried on contrary to the public interest. Having decided to conduct an investigation, the Registrar was authorised under the former Section 29 of the ordinance to require a magistrate to issue prohibition orders to prevent persons associated with the business of the travel agent from leaving Hong Kong without first assisting him in the investigation. During the year, this provision was amended to ensure its consistency with the Bill of Rights Ordinance. The issue of the order is now made a judicial function. The discretion to issue such an order will be exercised by a magistrate if he is satisfied that it is in the public interest to stop the persons concerned from leaving the territory. The amendment aims to strike a balance between the protection of outbound travellers and the need for compatibility with the Bill of Rights Ordinance.
Consumers joining outbound package tours are protected by the Travel Industry Compensation Fund, established under the Travel Agents Ordinance in October, 1993. The fund derives its income from the fund levy imposed upon licensed travel agents on the basis of the outbound package tour fares. Should a licensed travel agent default, aggrieved outbound travellers are entitled to claim an ex gratia compensation of 80 per cent of the outbound fares paid.
In 1994, no travel agencies collapsed. The Travel Industry Compensation Fund had a balance of $160 million at the end of the year.