XN000022-1996-01-24 — Page 49

23

+

In reply to part (b) of the question, as at the end of 1995, there were 1,218 licensed travel agents. Only a small number of them are actually involved in the organisation of outbound package tours. According to information disclosed to the Registrar of Travel Agents, 20 major tour operators which represent 80% of the market share of package tours, have taken out travel insurance for their clients.

As regards part (c) of the question, the Administration believes that both travel agents and travellers should be free to decide whether, and how much, travel insurance should be taken out. Tour members should, however, be advised of the details of insurance coverage by outbound package tour operators if it is included in the package tour service. Travel agents should also, as a matter of professional practice, encourage and remind their clients to take out insurance policies to protect themselves.

As regards part (d) of the question, the pros and cons of requiring, on a mandatory basis, all travel agents to take out travel insurance for members on their package tours were examined in detail and thoroughly last year by the relevant parties, including Members of this Council, the Travel Industry Council, the Consumer Council, the Advisory Committee on Travel Agents and the Travel Industry Compensation Fund Management Board. The subsequent recommendation put to the Administration was that to ensure basic protection for outbound travellers on package tours, the Government should introduce a package tour accident contingency fund scheme. The scheme should be a no-fault scheme offering immediate emergency financial relief to victims of accidents on package tours abroad or their families.

The Administration is now actively drafting the rules for the operation of this contingency fund. Our aim is to bring the fund into effect hopefully before the Lunar New Year holidays and certainly before the Easter holidays. The need to introduce legislation requiring all travel agents to take out travel insurance for members on their package tours may be reviewed at a later stage in the light of the operation of the contingency fund scheme.

End