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TRAVEL AND TOURISM
The Travel Industry Council of Hong Kong (TIC) is the self-regulatory body of the travel industry. The ordinance requires travel agents to become, and remain, members of the TIC in order to obtain and hold a licence. TIC membership carries conditions, such as minimum requirements for capital, number and experience of staff, and office premises. The TIC sets and enforces codes of conduct to regulate business operations in such areas as advertising and business practices. It is also responsible for collecting statutory levies and handling public complaints about services of its members. Members who breach the rules of the TIC are subject to disciplinary action, including losing their membership with the TIC.
To facilitate public consultation, the ordinance provides for the establishment of the Advisory Committee on Travel Agents (ACTA). It is chaired by a non-official independent of the travel industry, and its non-official members are drawn from different walks of life. The ACTA regularly reviews the regulatory regime and recommends improvement measures when needed.
In addition, the ordinance sets up a Travel Industry Compensation Fund (TICF) to provide financial protection for participants of outbound package tours. It provides ex gratia compensation of up to 90 per cent of the loss of tour fares in the event of travel agent default. The fund is overseen by an independent management board and derives its income from contributions from licensed travel agents in the form of a levy on package tours and from investments and bank interest. At the end of 1999, the TICF was holding a balance of $297 million. In 1999, three cases of default on cessation of operation by travel agents occurred, affecting about 2 700 travellers. These travellers were paid ex gratia compensation of about $6,867,000 from the Fund.
The TICF also operates a Package Tour Accident Contingency Fund Scheme. It provides emergency financial relief to outbound travellers injured or killed in accidents while touring abroad. It covers medical and funeral expenses incurred in the place of the accident, or repatriation of the remains of the victim to Hong Kong, as well as expenses for compassionate visits by up to two relatives of the victim. In 1999, nine tour accidents involving one fatal and eight injury cases were reported. Payments under the scheme amounted to about $43,000.