- 2.
Review on ex gratia payment and regulatory
mechanism of the outbound travel industry completed
A review on the rate of ex gratia payment under the Travel Industry Compensation Fund (TICF) and the regulatory mechanism of the outbound travel industry commenced in June this year has been completed.
The review was conducted by the Government in conjunction with the Travel Industry Council of Hong Kong (TIC), the Advisory Committee on Travel Agents (ACTA) and the TICF Management Board.
A Government spokesman said, "We note that there is no consensus on the suggestion that the rate of ex gratia payment from the TICF should be increased from 80% to 100%."
"However, after having examined the arguments for and against full compensation in detail, the ACTA and the Management Board have advised that the rate of ex gratia payment under the TICF should be revised from the existing 80% to 90%."
"This recommendation has also the support of the TIC," the Government spokesman said.
As regards the regulatory mechanism of licensed travel agents, the spokesman said the ACTA has advised that the existing regulatory regime is functioning effectively and should therefore be retained.
"Moreover, the retention of the existing regulatory system is further justified by the occurrence of few default cases in the past six years."
"The ACTA and the Management Board have endorsed the review recommendations. In order to enhance the protection of consumers, they have advised that the recommendations should be implemented as soon as possible," the spokesman added.
During the review, comments of the ACTA and the TICF Management Board on the review recommendations regarding the rate of ex gratia payment and regulatory regime have been sought.