XN000022-1997-01-29 — Page 32

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Minimum fares requirement for outbound tours

Following is a question by the Hon Fred Li and a reply by the Secretary for Trade and Industry, Miss Denise Yue, in the Legislative Council today (Wednesday):

Question:

It is learnt that in mid-October last year, the Travel Industry Council (TIC) launched a trial scheme dispensing with the minimum fares requirement for certain outbound travel tours. The trial scheme ended in mid-December last year, and the TIC later stated that the outcome of the scheme was favourable, but it still decided to retain the minimum fares requirement for outbound travel tours. In this regard, will the Government inform this Council:

(a)

(b)

(c)

whether the Government is aware of the specific contents of the outcome of the above trial scheme, and the criteria adopted by the TIC for concluding that the outcome was favourable;

whether the Government is aware of the reasons why the TIC has no intention of relaxing the minimum fares requirement for outbound travel tours completely, given the favourable outcome of the trial scheme; and whether the TIC's stance is in breach of the principle of fair competition; and

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whether - in response to the views of Members of this Council, the Consumer Council, individual operators in the travel industry and members of the public the Government will request the TIC to remove the minimum fares requirement for outbound travel tours, so as to safeguard the principle of fair competition; if not, why not?