ENG-1997 — Page 395

TRAVEL AND TOURISM

interest. Should a licensed travel agent default, aggrieved outbound travellers with proof of payment are entitled to a maximum ex gratia payment of 90 per cent of the tour prices paid. In 1997, no default of travel agent requiring payment of compensation occurred.

With a view to enhancing its service to the travelling public, the TICF management board has examined and simplified the application procedure for claims of ex gratia payments not exceeding $10,000 each. The simplified procedures shorten processing time by up to four months and were implemented from April 4, 1997.

The TICF also operates the Package Tour Accident Contingency Fund Scheme. Introduced in February 1996, this scheme provides financial relief to outbound travellers injured or killed in accidents while touring abroad. It covers medical expenses and funeral expenses incurred in the relevant country, or repatriation of the body/ashes of the victim, as well as expenses incurred in compassionate visits for up to two relatives of the victim. Under the scheme, maximum ex gratia assistance of up to $180,000 may be granted in a single incident in the case of death. As the scheme aims only to provide emergency relief, outbound travellers on package tours are encouraged to take out their own insurance policies to fully cover themselves. In 1997, seven tour accident reports involving eight fatal and seven injury cases were received. Claims since the introduction of the scheme amount to about $150,000.

The TICF has been growing steadily and is in a healthy financial state. Having reviewed its ability to meet contingency liabilities and the potential benefits to consumers, the management board recommended to the Financial Secretary to reduce the rate of the fund levy from 0.35 per cent to 0.15 per cent of the outbound package tour fare. The new rate was implemented with effect from May 2, 1997. At the end of 1997, the TICF had a balance of $234 million.

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