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SATURDAY, MAY 14, 1983

HE SAID THE BASIC AIM OF REGISTRATION WAS TO ENABLE THE BUSINESSES TO BE IDENTIFIED AND THE BASIC AIM OF LICENSING WAS TO REGULATE THEIR ACTIVITIES TO THE EXTENT PROVIDED FOR IN THE LEGISLATION,

MR YEUNG POINTED OUT THAT THE LICENSING REQUIREMENT COULD NOT PREVENT ABSCONDMENT ALTOGETHER, JUST AS THE LICENSING OF RESTAURANTS COULD NOT GUARANTEE AGAINST CONTRACTING FOOD POISONING.

+BUT A BODY OF LICENSED TRAVEL AGENTS THAT IS REQUIRED TO CONDUCT THEIR OPERATIONS UNDER A CERTAIN DEGREE OF TRANSPARENCY SHOULD PROVIDE MEMBERS OF THE TRAVELLING PUBLIC WITH SOME ASSURANCE THAT THEY ARE DEALING WITH BONA FIDE BUSINESSES AND WITH SUFFICIENT INFORMATION TO JUDGE THE NATURE OF THEIR PURCHASES,+ HE SAID.

IN DECIDING THAT LEGISLATION SHOULD BE DRAFTED, MR YEUNG SAID, THE GOVERNOR IN COUNCIL HAD ASKED THAT THE PROPOSED REQUIREMENT SHOULD NOT HAVE THE EFFECT OF SERIOUSLY ERODING COMPETITION.

HE SAID ONE COULD REASONABLY EXPECT A CONTRACTION IN NUMBERS TO RESULT FROM THE IMPOSITION OF ANY REGIME ON A TOTALLY FREE ENVIRONMENT, THE DEGREE OF CONTRACTION DEPENDING ON THE ABILITY AND WILLINGNESS OF BUSINESSES TO OPERATE UNDER THE CONDITIONS OF THE REGIME.

HOWEVER, MR YEUNG WAS CONFIDENT THAT THE 450 OR SO MEMBERS OF THE FIVE TRAVEL INDUSTRY ASSOCIATIONS IN HONG KONG, WHICH ACCOUNTED FOR SOME 75 PER CENT OF TOTAL SALES OF AIRLINE TICKETS AND NOT LESS THAN 80 PER CENT OF THE MARKET FOR GROUP TOURS, SHOULD BE QUITE CAPABLE OF MEETING THE LICENSING CONDITIONS.

+MOREOVER THE REGIME WOULD BE OPEN TO ANY BUSINESS OR INDIVIDUAL WHO WISH TO ENTER THE MARKET AND COULD MEET THE REQUIREMENTS FOR THE ISSUE OF LICENCES.+

WHILE NO DECISION HAD BEEN TAKEN ON WHAT WAS TO BE DONE AFTER THE ESTABLISHMENT OF A LICENSING SYSTEM, MR YEUNG SAID HE PERSONALLY DID NOT CONSIDER THIS TO BE THE ULTIMATE OBJECTIVE.

+1 HOLD THE VIEW STRONGLY THAT THERE IS NOTHING BETTER THAN SELF-REGULATION, AND THAT THE REGIME WHICH WE ARE SEEKING TO CREATE IS ONLY A FIRST STEP IN THAT DIRECTION.

+1 AM REINFORCED IN THIS BELIEF BY THE FACT THAT THE INBOUND SECTOR OF THE INDUSTRY IS SELF-REGULATED, AND BY THE PROVEN TRACK RECORD OF THE HONG KONG TOURIST ASSOCIATION.

+1 AM NOT, THEREFORE, RULING OUT THE POSSIBILITY THAT THE REGULATORY MACHINE MIGHT ONE DAY BE TAKEN OVER BY AN ORGANISATION THAT FULLY AND EFFECTIVELY REPRESENTS THE OUTBOUND SECTOR OF THE INDUSTRY,+ HE SAID.

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