TRAVEL INDUSTRY RULES GAZETTED

The new regulatory regime of the travel industry will be implemented in full from September 1 and seven pieces of subsidiary legislation made for the full implementation were gazetted today.

The Travel Industry Ordinance was passed by the Legislative Council in 2018 with some of the provisions brought into operation and the Travel Industry Authority (TIA) established according to the relevant provisions in 2020. The remaining provisions will be implemented together with the seven pieces of subsidiary legislation.

The Commerce & Economic Development Bureau said that since its establishment, the TIA has been actively taking forward preparatory work for the full implementation of the new regulatory regime of the travel industry and conducted a trade consultation on the implementation details including the subsidiary legislation from February to April.

In summary, the trade expected an early and smooth transition to the new regulatory regime, it added.

      

Noting that the subsidiary legislation was made in accordance with the framework of the Travel Industry Ordinance and reflected the views of the trade as well as the consensus of the TIA, the bureau said the legislative proposal was supported by the Legislative Council Economic Development Panel.

      

Of the seven pieces of subsidiary legislation, the Travel Industry Ordinance (Commencement) Notice 2022 appointed July 4 as the implementation date for the provisions of the ordinance related to transition and September 1 as the implementation day for the remaining provisions.

In accordance with the notice, the TIA can commence the transitional work with the Travel Agents Registry under the Tourism Commission, the Travel Industry Council and the Travel Industry Compensation Fund Management Board from July 4, and take over the statutory functions and responsibilities such as licensing, regulation of the industry, administration of the Travel Industry Compensation Fund and imposition of levies on travel agents on September 1.

Before the full implementation of the new regulatory regime, the existing regulatory regime for the travel industry continues to operate.

      

The remaining six pieces of subsidiary legislation are related to the implementation details of the new regulatory regime, including specifying the levies to be paid by licensed travel agents to the TIA and the Travel Industry Compensation Fund at 0.15% and 0% of each outbound fare.

They also prescribe the adoption of the current E-levy System for the collection, payment and recording of levies under the new regulatory regime; prescribe the arrangements such as the amount and procedure for the ex gratia payment under the compensation fund; and matters such as prescribing the licence conditions and general requirements imposed on licensed travel agents.

      

The seven pieces of subsidiary legislation will be tabled in the Legislative Council for negative vetting on May 11.

      

The Commerce & Economic Development Bureau said it is expected the new regime would further enhance the professionalism of the travel industry and promote its healthy development.

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