ENG-2000 — Page 368

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TRAVEL AND TOURISM

In addition, the ordinance sets up a Travel Industry Compensation Fund (TICF) to provide financial protection for participants of outbound package tours. It provides ex gratia compensation of up to 90 per cent of the loss of tour fares in the event of travel agent default. The fund is overseen by an independent management board and derives its income from contributions from licensed travel agents in the form of a levy on outbound package tours and from investments and bank interest. At the end of 2000, the TICF was holding a balance of about $320 million. During the year, one case of default on cessation of operation by a travel agent occurred, affecting just eight travellers. These travellers received ex gratia compensation of $6,600 from the fund, in total.

The TICF also operates a Package Tour Accident Contingency Fund Scheme. The scheme provides emergency financial relief concerning outbound travellers injured or killed in accidents while touring abroad. It covers medical and funeral expenses incurred in the place of the accident; costs for repatriating the remains of the deceased to Hong Kong; and expenses incurred by relatives of the injured/deceased for travelling to the place of the accident or to Hong Kong for compassionate visits or dealing with residual matters relating to the death. In 2000, 10 tour accidents. involving four fatalities and 68 cases of injury were reported. Payments under the scheme amounted to about $80,000.