ENG-1991 — Page 334

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TRAVEL AND TOURISM

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HONG KONG'S out-bound travel business is carried out by some 1000 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 organisation of travel agents 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. A one per cent levy is raised on all out-bound tour fares to make up 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.

In 1991, there were no cases of travel agent failure. The Reserve Fund increased by $33,360,395 in 1991, and had a balance of $79,962,349 at the end of the year. The fund has paid out $12,701,777 in compensation since its inception.

Tourism

Tourism is one of Hong Kong's largest service industries and the territory's third largest earner of foreign exchange. More than six million visitors came to Hong Kong in 1991, an increase of 1.7 per cent over the previous year. Tourism earnings registered an increase of 1.8 per cent in 1991, reaching a total of $40 billion.

Hong Kong remains Asia's most popular travel destination. The biggest growth in visitors in recent years has been from neighbouring countries in the Asian region, notably Taiwan and Japan which accounted for 21.5 per cent and 20.9 per cent respectively in 1991, as well as South-east Asia (16.8 per cent) and South Korea (3.1 per cent). Visitors from the USA/Canada, Western Europe and Australia/New Zealand accounted for 13 per cent, 13.1 per cent and 4.6 per cent respectively.