CROSSMAN, JUTY 2, 1992
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8.
Mechanism to
replenish TICRF for its successor)
Not mentioned in original proposals.
The Fund Levy for TICRP (or its successor) to be restored to 0.85% if the Fund drops below $70 million.
On the basis of present business turnover, it will take about one year to restore the Fund from $70 million to $100 million at a levy rate of 0.85%.
9.
Rate of
compensation for outbound travellers
To increase from 70% to 85% of tour fares paid.
To increase rate from 70% to 80%.
This is a compromise recommended by ACTA. TIC has initially proposed to increase to only 75%, while Consumer Council advocates 100% compensation.
10. Re-constituting
TICRF
To re-constitute TICRF into a
statutory fund,
be managed by a
to
board of trustees.
To establish an independent fund to be called the Travel Industry Compensation Fund, under the Travel Agents Ordinance to take over the assets and liabilities of TICRF and TARP. The new Fund will be managed by a management board to be appointed by the Governor.
This will help resolve problems arising from the awkward relationship between TIC and TICRF, which itself is presently a subsidiary of TIC but approves funds for TIC. The new
arrangment will give a separate identity to the Fund.
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