TRAVEL AND TOURISM
who breach the TIC's rules are subject to disciplinary action, including losing their membership.
The Advisory Committee on Travel Agents (ACTA) was established under the Travel Agents Ordinance to advise the Chief Executive on matters relating to the administration of the ordinance, travel agents and travellers. During the year, ACTA continued to review and advise on the regulatory system for the travel industry, the enhancement of travellers' safety, and the improvement of service standards of travel agents. On ACTA's advice, the Registrar introduced a standardised-term licensing system in September, and licence conditions aimed at improving the monitoring mechanism. The TIC also introduced a training programme for tour escorts leading to a certification system.
The Travel Industry Compensation Fund (TICF) was set up in October 1993 to provide financial protection to participants of outbound package tours. It is overseen by an independent management board and is funded by contributions from licensed travel agents in the form of a levy on package tours and by investments and bank interest. Should a licensed travel agent default, affected outbound travellers with proof of payment are entitled to a maximum ex gratia compensation of 90 per cent of the tour price paid. In 1998, two cases of default on cessation of operation by travel agents occurred, affecting 81 travellers. The travellers claimed and obtained ex gratia compensation of about $540,000 from the fund.
The TICF also operates a Package Tour Accident Contingency Fund Scheme. Introduced in February 1996, this scheme provides emergency financial relief to outbound travellers injured or killed in accidents while touring abroad. It covers medical and funeral expenses incurred in the place where the accident happened, or repatriation of the remains of the victim to Hong Kong, as well as expenses for compassionate visits by up to two relatives of the victim. In 1998, 13 tour accidents. involving six fatal and 26 injury cases were reported. Payments under the scheme amounted to about $40,000.
At the end of 1998, the TICF held a balance of $261 million.
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