Travel agents providing services to inbound and outbound travellers are
regulated by the Travel Agents Ordinance. The aim of the ordinance is to minimise
the occurrence of fraud and loss to travellers in the event of defaults by outbound
travel agents, and to protect the interests of visitors by enhancing the service
standards of inbound travel agents. The scheme's two principal elements are: a
licensing system and a regulatory mechanism operated by the trade.
The licensing function is performed by the Registrar of Travel Agents appointed
by the Government. All travel agents providing outbound or inbound services must
be licensed under the ordinance. At year-end, the number of licensed travel agents
totalled 1 433.
The trade's regulatory function is performed by the Travel Industry Council of
Hong Kong (TIC), an approved organisation under the ordinance. Travel agents must
be members of the TIC to obtain and hold a licence. The TIC sets and enforces codes
of conduct and issues directives to ensure proper practices. It also handles complaints
from the public. Member travel agents which breach the council's rules are subject to
disciplinary action.
A Travel Industry Compensation Fund (TICF) has been set up under the ordinance
to provide ex gratia payments of up to 90 per cent of the loss of tour fares to
outbound travellers in the event of a default by an outbound travel agent. There were
three default cases during the year which affected about 444 travellers involving ex
gratia payment of about $850,000.
The TICF also provides urgent financial assistance to outbound travellers injured
or killed in accidents in the course of an activity arranged or organised by a Hong
Kong travel agent. There were seven such accidents reported in 2006. The victims
were paid about $110,000.
A training and accreditation, system drawn up by the TIC to ensure the service
quality of tourist guides went into effect on November 1, 2002. With effect from
July 1, 2004, travel agents are required to assign only those tourist guides holding a
Tourist Guide Pass to receive visitors to Hong Kong.
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