ENG-1990 — Page 342

17

TRAVEL AND TOURISM

288

HONG KONG'S out-bound travel business is carried out by some 1 000 travel agents who are licensed by the Registrar of Travel Agents, under the Travel Agents Ordinance. The ordinance provides the statutory framework for self-regulation of the out-bound travel industry. In order to be licensed, a travel agent must be a member of the Travel Industry Council of Hong Kong.

The council is an approved representative of travel agents and tour operators in Hong Kong. It comprises six association members: Hong Kong Association of Travel Agents Limited; Federation of Hong Kong Travellers Limited; International Chinese Tourist Association Limited; Society of IATA Passenger Agents Limited; Hong Kong Taiwan Tourist Operators Association Limited, and Hong Kong Association of China Travel Organisers Limited. The council regulates member travel agents by means of codes of practice and occasional directives. Members who breach the rules of self-regulation risk losing their council membership and their licence to operate.

Out-bound travellers on tours are covered by a scheme that offers a high degree of protection. Licensed travel agents are obliged to contribute one per cent of their out-bound tour fares to the Travel Industry Council Reserve Fund, which was established in 1988. If a licensed travel agent should collapse, travellers may claim compensation from this fund for up to 70 per cent of tour fares paid, by producing receipts marked to indicate payment of the one per cent levy. This scheme and the whole package of self-regulation for the out-bound tour industry, are being reviewed.

During 1990, one medium-sized travel agent collapsed. The Reserve Fund collected $32,181,722 in 1990, and the total collected so far is $70,364,697. The Reserve Fund paid out $4,111,057 in compensation in 1990, and has paid out $12,627,795 in total since its inception.

Tourism

Tourism is now one of Hong Kong's largest service industries and the territory's third largest earner of foreign exchange. Some 5.9 million visitors came to Hong Kong in 1990, an increase of 10.7 per cent over the previous year. Tourism earnings also registered an increase (8.4 per cent) over 1989, reaching a total of $40 billion.

Hong Kong remains a popular destination for visitors from all over the world, but the biggest growth in visitors in recent years has been from neighbouring countries in the Asia-Pacific region, notably Taiwan and Japan which accounted for 22.7 per cent and 22.4