FRIDAY, DECEMBER 17, 1982
CONTROL OF TRAVEL AGENTS APPROVED
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THE GOVERNMENT WILL INTRODUCE MEASURES DESIGNED TO PROTECT THE PUBLIC AGAINST FRAUDULENT TRAVEL AGENTS.
ANNOUNCING THIS AT A PRESS CONFERENCE TODAY, THE DEPUTY SECRETARY FOR ECONOMIC SERVICES, MR K.Y. YEUNG, SAID THE MEASURES WOULD INCLUDE LEGISLATIVE CONTROLS OF THE OUTBOUND TRAVEL INDUSTRY, AS WELL AS A PUBLICITY CAMPAIGN TO ENHANCE CONSUMER AWARENESS OF THE PRACTICES OF THE INDUSTRY.
AFTER CONSIDERING PROPOSALS MADE BY THE SECRETARY FOR ECONOMIC SERVICES ON THE ADVICE OF A WORKING PARTY, THE GOVERNOR-IN-COUNCIL HAS AGREED IN PRINCIPLE THAT LEGISLATION SHOULD BE DRAFTED TO REQUIRE TRAVEL AGENTS, WHETHER CORPORATE OR INDIVIDUAL, TO BE REGISTERED AND LICENSED. THE WORKING PARTY, COMPRISING GOVERNMENT OFFICIALS AND REPRESENTATIVES OF THE TRAVEL INDUSTRY AND THE CONSUMER COUNCIL, WAS SET UP TO ADVISE ON MEASURES THAT SHOULD BE TAKEN TO AFFORD MEMBERS OF THE TRAVELLING PUBLIC A REASONABLE DEGREE OF PROTECTION AGAINST FRAUD IN GENERAL, AND ABSCONDMENT IN PARTICULAR, HAVING DUE REGARD TO THE NEED TO MAINTAIN COMPETITION WITHIN THE TRAVEL INDUSTRY,
+THE BASIC AIM OF THE PROPOSALS IS TO REQUIRE TRAVEL AGENTS TO CONFORM WITH FINANCIAL AND OPERATING STANDARDS SUFFICIENT TO GIVE THE TRAVELLING PUBLIC A DEGREE OF ASSURANCE THAT THEY ARE DEALING WITH A BONA FIDE BUSINESS AND WITH SUFFICIENT INFORMATION TO JUDGE THE NATURE OF THE IR PURCHASES,+ MR YEUNG SAID.
BASIC CRITERIA WOULD GOVERN THE GRANTING OF LICENCES TO BUSINESSES THAT PROVIDE THE FULL RANGE OF SERVICES IN THEIR OWN RIGHT. THESE COULD INCLUDE A MINIMUM PAID-UP CAPITAL, THE USE OF OFFICE PREMISES DEVOTED WHOLLY AND EXCLUSIVELY TO THE BUSINESS, A MINIMUM NUMBER OF EMPLOYEES AND LEVEL OF EXPERIENCE AND THE GOOD STANDING OF APPLICANTS (E.G. WITHOUT A CRIMINAL RECORD, FINANCIALLY SOUND, ETC.).
THE CONDITIONS ARE SIMILAR TO THE EXISTING MEMBERSHIP CRITERIA OF THE TRAVEL INDUSTRY ASSOCIATIONS, THE CONDITIONS ON WHICH THE AIRLINES APPOINT TICKETING AGENTS AND THE INTERNAL RULE BY WHICH THE HONG KONG TOURIST ASSOCIATION QUALIFIES TRAVEL AGENTS AS MEMBERS OF THE ASSOCIATION.
MR YEUNG SAID ABOUT TWO-THIRDS OF THE TRAVEL AGENTS IN HONG KONG WERE SMALL BUSINESSES WHICH ACTED ESSENTIALLY AS BROKERS.
+IT WILL BE NECESSARY TO INTRODUCE A SEPARATE CLASS OF LICENCE TO ENABLE THESE TRAVEL AGENTS TO STAY IN BUSINESS BECAUSE OF THE VALUABLE SOURCE OF RETAIL BUSINESS THEY PROVIDE TO THE ESTABLISHED BUSINESSES AND IN ORDER TO KEEP COMPETITION ALIVE AND, THEREFORE, PRICES AT REASONABLE LEVELS.+
HE ADDED THAT TRANSITIONAL ARRANGEMENTS WOULD BE INTRODUCED TO ALLOW SMALLER BUSINESSES TO MEET THE CRITERIA WITHIN A CERTAIN PERIOD OF TIME, AFTER WHICH ANY TRAVEL AGENT FOUND OPERATING WITHOUT A LICENCE WOULD BE LIABLE TO PROSECUTION.
/IT IS