TNAG-1733-FCO40-2446-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 271

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thirdly, to settle the outstanding claims

against the Travel Agents' Reserve Fund.

le

in

Since the enactment of the

the principal Ordinance

1985, a number of travel agents have defaulted due to

financial difficulties or the abscondment of their owners.

The provisions in the Ordinance concerning ex-gratia

compensation have proved to be inadequate. to be inadequate.

With

л

Accordingly, the

Government, in consultation the Travel Industry Council

percentndustry of

Hong Kong which represents about 50% of all licensed travel

agents and the vast majority of outbound tour organizers,

commenced a review of the Ordinance. The review focussed,

in particular, on the compensation arrangements and on the

future direction of regulation of the outbound travel

industry. The Advisory Committee on Travel Agents, the

Consumer Council and the Legislative Council Ad Hoc group on

the Travel Agents Ordinance also gave their views on the

matter. The general consensus was that the introduction of

self-regulation was the most appropriate means of

encouraging better professional

professional standards and discipline

within the industry.

Sir, the Bill

Bill contains a broad framework and the

essential statutory provisions required to

required to implement the

policy of self-regulation. Clause 4 of the Bill amends the