XN000022-1996-11-04 — Page 4

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Recommendations of the review of the

regulatory mechanism of the outbound travel industry preventive measures

(a)

(b)

(c)

(d)

In case of financial difficulties of a major travel agent, a task group should be set up to advise the Registrar of Travel Agents (RTA) and the TIC on necessary actions to be taken which may include reduction of the scale of operation of the travel agent, cutting down its advertisement and number of branches, etc. The task group should comprise representatives from ACTA, TICF Management Board, Consumer Council, TIC and the Travel Agents Registry (TAR).

The TIC should step up its efforts to ensure that receipts for outbound package tours issued by licensed travel agents are properly and adequately franked.

The organisation and management effectiveness of the Executive Office of the TIC should be reviewed to further improve the quality and efficiency of service to its members and the public.

The TAR should made regular reports to the ACTA on the performance standards and targets as set out in its Performance Pledge.

(e)

(f)

(g)

(h)

Each licensee shall, within one month of receipt of the auditor's report on statements of accounts in respect of the business of the previous financial year, submit a copy of the report to the RTA.

Upon request by the RTA, a licensee shall submit a quarterly return on the financial position of its business in a form specified by the RTA.

The TIC and Consumer Council should continue to refer substantiated complaints against quality of service to the RTA who will take them into account when applications for renewal of licences are considered. If a travel agent fails to improve the quality of service provided to travellers in spite of repeated advice, disciplinary actions such as verbal warning, written warning, warning for revocation of licence, suspension and revocation of licence, should be taken against the company.

More publicity should be given to the work of the TIC with regard to the protection of outbound travellers, e.g. its complaints handling mechanism.