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WEDNESDAY, JULY 8, 1992
Annex
Package of Reforms for the
Regulatory Scheme of the Outbound Travel Industry
Original proposals referred
to TIC in December 1991
Financial Arrangements for TIC
L.
2.
Introduction of
split levies
To split the existing 1% levy into two levies: a 0.15% Council Levy for TIC to help finance its self- regulatory efforts and a 0.85% Fund Levy to TICRF (or its successor) for the compensation of aggrieved outbound travellers.
Rates
of levies to be
specified by the
Financial Secretary
from time to time.
Target amount of commensation fund
$200 million before the Fund Levy is reduced.
Present Package
No change.
$100 million as the trigger point for reduction in the rate of the Fund Levy.
Remarks
The split levies seek to delineate clearly the dual purposes of the present. 14 levy i.e. to finance self-regulation and to compensate travellers. The 0.15% Council Levy proposed for TIC is roughly equivalent to what it has been receiving from TICRF. The Council Levy will be subject to review, in the light of items 5 and 7 below.
Business turnover of the top five outbound travel agents provided by TIC shows that $100 million would be sufficient for compensating travellers if a principal outbound travel agent fails at peak season.
It is
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No comments yet.
Private notes are available after approval.