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Decree of the State Council of the People’s Republic of China
No. 550
The Regulation on Travel Agencies was adopted at the 47th executive meeting of the State Council on January 21, 2009 and hereby promulgated, which shall enter into effect on May 1, 2009.
Premier Wen Jiabao
February 20, 2009
Regulation on Travel Agencies
Chapter I General Provisions
Article 1 The Regulation is formulated for the purpose of strengthening administration of travel agencies, ensuring the legitimate interests of tourists and travel agencies, maintaining the tourist market order and boosting the healthy development of tourism.
Article 2 The Regulation shall apply to the establishment and operation activities of the travel agencies in the People’s Republic of China.
Travel agencies herein refers to the business entities engaging in such activities as soliciting, organizing and receiving tourists, providing services related to tourism and conducting domestic travel business, inbound travel business or outbound travel business.
Article 3 The competent tourism administration under the State Council shall be responsible for the supervision and administration of the travel agencies across China.
The travel administrations under the local people’s governments at or above the county level shall be responsible for the supervision and administration of travel agencies in the administration areas according to responsibility.
Relevant departments including industry and commerce, pricing, business and foreign exchange under the people’s governments at or above the county level shall conduct supervision and administration of travel agencies according to responsibility by law.
Article 4 Travel agencies shall adhere to the principles of free will, equality, fairness and good faith in the operation activities, improve the quality of service and safeguard the legitimate rights and interests of tourists.
Article 5 Trade organizations of travel agencies shall in accordance with the articles of association provide service for travel agencies and exert the role of coordination and self regulation to guide travel agencies to conduct legal, fairly competitive and bona fide operation.
Chapter II Establishment of Travel Agencies
Article 6 For applying for establishment to operate domestic travel and inbound travel business, a travel agency shall be qualified for the following requirements:
(1) Fixed place of business;
(2) Necessary business facilities; and
(3) Registered capital no less than RMB300,000.
Article 7 For applying for establishment to operate domestic travel and inbound travel businesses, a travel agency shall file an application to the competent travel administration in the province, autonomous region or municipality directly under the Central Government where it is domiciled or the competent travel department in the city divided into districts which has been entrusted and submit related documents as prescribed in Article 6 herein. And the competent travel administration accepting the application shall make a decision whether or not to approve within 20 working days upon receiving the application. Where an approval is given, the administration shall grant the travel agency business license to the applicant, and the applicant may hold the license to handle registration of establishment in the industry and commerce administration; where no approval is given, the administration shall notify the applicant and explain reasons in written form.
Article 8 In case a travel agency operates for two years after acquiring the license and is imposed a fine or more severe penalty by administrative organs for infringing on the legitimate rights and interests of tourists, it may apply for outbound travel business.
Article 9 For applying for outbound travel business, a travel agency shall file an application to the competent travel administration under the State Council or the competent travel administration in the province, autonomous region or municipality directly under the Central Government which is entrusted. And the administration shall make a decision whether or not to approve within 20 working days upon receiving the application. Where an approval is given, the administration shall renew the travel agency business license to the travel agency, and the travel agency shall hold the renewed license to handle registration of alteration in the industry and commerce administration; where no approval is given, the administration shall notify the applicant with reasons thereof in written form.
Article 10 In case a travel agency sets up a branch, it shall hold the duplicate of the travel agency business license to handle the registration of establishment in the industry and commerce administration where the branch is domiciled and conduct a filing in the competent travel administration where it is domiciled within 3 working days upon its registration of establishment.
The establishment of a branch is not restricted by area, and the business scale of a branch shall not exceed that of the travel agency that establishes it.
Article 11 In case a travel agency sets up the service outlet specially soliciting tourists and providing travel consultation services (hereinafter referred to as travel agency outlet), it shall handle the procedures of establishment registration in the industry and commerce administration and conduct a filing in the travel administration where it is domiciled.
Travel agency outlets shall be uniformly managed and shall not engage in other activities other then soliciting and consultation.
Article 12 In the event the alteration of such registration items as name, place of business and legal representative of a travel agency or its business is terminated, it shall handle corresponding alteration registration or cancellation of registration in the industry and commerce administration and conduct a filing in the former travel administration within 10 working days upon the completion of registration to renew or hand back the travel agency business license.
Article 13 One travel agencies shall open special accounts of quality deposit in the bank designated by the competent travel administration under the State Council deposit the quality deposit or submit to the travel administration giving approval the bank guarantee of guarantee quota acquired by law no less than corresponding quality deposit within 3 working days upon acquiring the travel agency business license.
Where a travel agency engages in domestic travel business and inbound travel business, it shall deposit the quality deposit of RMB200,000; and a travel agency engaging in outbound travel business shall increase of the quality deposit of RMB1.2m.
The interest of quality deposit belongs to the travel agency.
Article 14 A travel agency that sets up a branch engaging in domestic travel business and inbound travel business every time shall increase the quality deposit of RMB50,000; for setting up a branch engaging in outbound travel business, it shall increase the quality deposit by RMB300,000.
Article 15 The travel administration may utilize the quality deposit of travel agencies in any of the following circumstances:
(1) In case a travel agency violates tourist contract and infringes the legitimate rights and interests of tourists, which has been verified by the travel administration; or
(2) In case a travel agency inflicts the loss of tourist expenses paid in advance by tourists for dissolution, bankruptcy or other reasons.
Article 16 In case a travel agency impairs the legitimate rights and interests of tourists in the judgment and ruling of the people’s court or other valid legal documents but rejects or has no finance for compensation, the people’s court may appropriate compensation from the quality deposit account of the travel agency.
Article 17 In case a travel agency is not imposed a fine or more severe penalty for infringing on the legitimate rights and interests of tourists within three years upon paying or making up for the deficiency of the quality deposit, the travel administration shall lower 50% of quality deposit by the travel agency and issue an announcement to the public. And the travel agency may hold the voucher issued by the travel administration in the province, autonomous region or municipality directly under the Central Government to lessen its quality deposit.
Article 18 In case a travel agency whose quality deposit is utilized by the travel administration to compensate for the loss of tourists or lessened by law is imposed a fine or more severe penalty for infringing on the legitimate rights and interests of tourists, it shall make up for the deficiency of the quality deposit within 5 working days upon receiving the notice of make-up quality deposit by the travel administration.
Article 19 In case a travel agency no longer engages in travel business, it may withdraw the quality deposit from the bank with a voucher issued by the travel administration.
Article 20 The specific measures for the deposit and utilization of quality deposit shall be separately formulated by the competent travel administration and the finance department under the State Council together with relevant departments.
Chapter III Foreign Investment in Travel Agencies
Article 21 Foreign investment in travel agencies shall be subject to the provisions in this chapter; where no provisions are made in this chapter, it shall be subject to other relevant provisions of the Regulation.
The aforesaid foreign investment in travel agencies includes Chinese-foreign equity joint venture travel agencies, Chinese foreign cooperative travel agencies and wholly foreign-owned travel agencies.
Article 22 If establishing a foreign-invested travel agency, the investor shall file an application to the competent travel administration under the State Council and submit the qualified documents related to Article 6 herein. The administration shall finish examination and review within 30 working days upon accepting the application, and issue the examination and approval opinion for permitting foreign investment in travel agency if approval is given; if no approval is given, it shall notify the applicant and explain the reasons thereof in written form.
The applicant holds the examination and approval opinion for permitting foreign investment in travel agency, the articles of association, and contract signed by both parties of Chinese foreign joint venture and cooperative business operation to apply to the competent commerce administration under the State Council for establishment of a foreign-invested enterprise. The administration shall in accordance with relevant laws and regulations make the decision whether or not to approve. If approval is given, it shall grant the approval certificate to the foreign-invested enterprise and notify the applicant to acquire the travel agency operation license from the competent travel administration under the State Council, and the applicant may hold the license and the approval certificate for foreign-invested enterprises to handle registration of establishment in the industry and commerce administration; if no approval is given, it shall notify the applicant and explain the reasons thereof in written form.
Article 23 Foreign-invested travel agencies shall not engage in Chinese mainland residential travel business abroad and Chinese mainland residential travel business in Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan, but except otherwise the decisions by the State Council or free trade agreements and the Mainland and Hong Kong and Macao Closer Economic Partnership Arrangements signed by China.
Chapter IV Travel Agency Operation
Article 24 Tourist service information provided by travel agencies shall be authentic and reliable and no false advertising is allowed.
Article 25 The travel agencies engaging outbound travel business shall not organize tourists to travel in the countries and regions out of the list of Chinese citizens’ outbound travel destinations publicized by the competent travel administration under the State Council.
Article 26 The travel activities for tourists arranged and introduced by travel agencies shall not contain any content in violation of the relevant laws and regulations.
Article 27 Travel agencies shall not solicit tourists at the price lower than the tourist cost or provide other paid services beyond the tourist contract without consent of tourists.
Article 28 Travel agencies shall, while providing service for tourists, sign with tourists the tourist contract, stating the following items:
(1) Name, business scope, address, contact number and business license number of travel agency;
(2) Name and contact number of travel agency operator;
(3) Place and date of signing;
(4) Departing place, stops and destination in tour schedule;
(5) Arrangement of Service and standards for transportation, accommodation and catering in tour schedule;
(6) Specific content and time of tours uniformly arranged by travel agencies;
(7) Time and times of free activities of tourists;
(8) Payable tourist expenses and means of payment by tourists;
(9) Times of shopping, stay time and names of shopping places arranged by travel agencies;
(10) Tours and prices separately paid by tourists;
(11) Conditions of cancellation and alteration of contract and deadline of notice in advance;
(12) Dispute settlement mechanism for violation of contract and corresponding responsibility;
(13) Phone number of supervision and complaints on and about tourist service; and
(14) Other content consulted by both parties.
Article 29 Travel agencies shall make authentic, accurate and full explanations on the specific content of the tourist contract while signing the tourist contract with tourists.
Where there is vagueness in the tourist contract or dispute over the understanding of the form clauses, the travel agencies shall conduct explanations according to usual understanding; where there are two or more explanations on the form clauses, travel agencies shall give explanations beneficial to tourists; and where form clauses and non-form clauses are inconsistent, travel agencies shall adopt the non-form clauses.
Article 30 In case a travel agency organizes Chinese mainland residents to conduct outbound tourism, it shall arrange full-process guides for the tourist group throughout the tour.
Article 31 Tour guides entrusted by the travel agency to receive tourists or the lead guides entrusted for organizing tourists in outbound tourism shall hold the tourist certificate and lead guide certificate as prescribed by China.
Article 32 Travel agencies shall by law sign a labor contract and offer the pay no less than the local lowest salary standard while employing tour guides and lead guides.
Article 33 Travel agencies and their entrusted tour guides and lead guides shall not conduct any of the following behaviors:
(1) Decline to fulfill the obligation in the tourist contract;
(2) Alter the tour schedule arranged in the tourist contract not for force majeure; or
(3) Cheat or threaten tourists to do shopping or participate in tours that shall be separately paid.
Article 34 Travel agencies shall not require tour guides and lead guides to receive the tour groups that fail to pay for receipt and services or offer the fees lower than the cost of reception and services or require tour guides and lead guides to undertake the expenses related to the received tour groups.
Article 35 In case a travel agency violates tourist contract and impairs the legitimate rights and interests of tourists, it shall adopt necessary remedy measures and timely report it to the travel administration.
Article 36 In case a travel agency is required to entrust travel business, it shall entrust it to the travel agency with corresponding quality, solicit the agreement of tourists and sign a commission contract with the entrusted travel agency on issues of receiving tourists to decide the arrangements of services and standards for receiving tourists and agree on the rights and obligations of both parties.
Article 37 In case a travel agency which entrusts its travel business to other travel agency shall offer fees no less than the cost of reception and service to the entrusted travel agency; and the entrusted travel agency shall not receive the tour groups which fail to pay for or insufficiently pay for the reception and services.
Where the entrusted travel agency violates contract and impairs the legitimate rights and interests of tourists, the travel agency that conducts entrustment shall undertake corresponding liability of compensation and thereafter may charge compensation from the entrusted travel agency.
Article 38 Travel agencies shall insure the travel agency liability insurance. And the specific plan for travel agency liability insurance shall be separately formulated by the competent travel administration under the State Council together with insurance supervision and administration bodies under the State Council.
Article 39 Travel agencies shall conduct authentic explanations and explicit warnings to tourists for the items likely endangering the security of tourists and property and adopt necessary measures to prevent hazards from occurring.
In the event there are situations endangering tourists’ safety, the travel agency, and its entrusted tour guides and lead guides shall adopt necessary measures and timely report to the travel administration; in the event such situations happen abroad, they shall timely report it to the embassy of the People’s Republic of China in the country, related Chinese institutes in the country and local police.
Article 40 In the event tourist fails to return from abroad, the guide entrusted by the travel agency shall timely report it to the embassy of the People’s Republic of China and related Chinese institutes in the country. And the travel agency shall timely report it to the travel administration and the public security organ of China upon receiving the guide’s report and coordinate to provide information of the illegal immigrant.
In the event there occur the situation that tourist stays illegally in China while a travel agency receives inbound tourism, it shall timely report it to the travel administration, the public security organ and foreign affairs departments and coordinate to provide the information of the illegal immigrant.
Chapter V Supervision and Inspection
Article 41 Relevant departments such as tourism, industry and commerce, price, business and foreign exchange shall according to law strengthen supervision and administration of travel agencies and timely handle the illegal acts.
Article 42 Administrative departments of tourism, industry and commerce and price shall timely issue the supervision and inspection status to the public, with the content including issuing, alteration, revocation and withdrawal of the travel agency business license, illegal business acts and record of good faith of travel agency and tourists’ complaints.
Article 43 In the event travel agency impairs the legitimate rights and interests of tourists, the tourists may make complaints to tourism administrations, administrations of industry and commerce, competent price departments, competent commerce departments or foreign exchange administrations, which shall timely investigate and handle them according to their own duties and responsibilities upon receiving the complaints and inform the information related to the investigation and punishment to tourists.
Article 44 The travel agency and its branches shall accept the supervision and inspection of travel administration of its tourist contract, service quality, tourist security and financial books and report and submit statistic documents of business and financial information to the travel administration in accordance with relevant provisions of the state.
Article 45 Staff in the relevant departments of tourism, industry and commerce, price, business and foreign exchange shall not accept any present by travel agency, participate in shopping activities or tours at the expense of travel agency or make private benefits for themselves, relatives and friends or other individuals and organizations via travel agency.
Chapter VI Legal Liabilities
Article 46 Travel administration or administration of industry and commerce orders travel agency to make corrections and confiscates illegal gains, and where illegal gains amounts to more than RMB100,000, a fine of one to five times illegal gains will be concurrently imposed; where illegal gains is less than RMB100,000 or no illegal gains is acquired, a fine of RMB100,000 to RMB500,000 will be imposed for a travel agency in violation of the Regulation in any of the following cases:
(1) In case a travel agency fails to acquire corresponding travel agency business license but engage in domestic tourist business, inbound tourist business and outbound tourist business;
(2) In the event the branch’s business scope goes beyond that as prescribed when established; or
(3) In the event service outlets of travel agency engage in other activities rather than soliciting and consultation.
Article 47 In case a travel agency transfers, rents or lends the travel agency business license, the travel administration shall order it to suspend business and make corrections from 1 month to 3 months and confiscate illegal gains; where situation is serious, the travel agency business license will be revoked. For the travel agency receiving transfer or lease and lending of the travel agency business license, the travel administration or the administration of industry and commerce shall order it to suspend illegal business and confiscate illegal gains and a fine of RMB100,000 to RMB500,000 is imposed.
Article 48 In case a travel agency, violating the Regulations herein, fails to deposit, increase, make up for the deficiency of quality deposit in its quality deposit account or submit corresponding bank guarantee with the prescribed period, the travel administration shall order it to make corrections; for those declining to make corrections, the travel agency business licenses shall be revoked.
Article 49 In case a travel agency, in violation of the Regulation, fails to insure the travel agency liability insurance, the travel administration shall order it to make corrections; for those declining to make corrections, the travel agency business licenses shall be revoked.
Article 50 The travel administration shall order a travel agency to make corrections; for those declining to make corrections, a fine less than RMB10,000 shall be imposed for violation of the Regulation in any of the following cases:
(1) In case a travel agency fails to conduct a filing to the former travel administration to renew or hand back the travel agency business license with the prescribed period while altering the registration items of name, place of business and legal representative or terminating business;
(2) In case a travel agency fails to conduct a filing the travel administration where its branch is domiciled with the prescribed period while establishing a branch; or
(3) In case a travel agency fails to submit statistic data of business and financial information to the travel administration not according to relevant provisions of the state.
Article 51 In case a foreign investment travel agency, in violation of the Regulation, engages in Chinese mainland residential outbound tourist business and tourist business to Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan, or the travel agency engaging in outbound tourist business organizes tourists to travel in the country and region out of the list of Chinese citizens’ outbound tourism destinations publicized by the competent tourism administration under the State Council, the travel administration shall be responsible to order it to make corrections and confiscate illegal gains, and where illegal gains is more than RMB100,000, a fine of once to five times illegal gains is imposed; where illegal gains are less than RMB100,000 or no illegal gains are acquired, a fine of RMB100,000 to RMB500,000 is imposed; and if situation is serious, the travel agency business license shall be revoked.
Article 52 In case a travel agency, in violation of the Regulation, arranges or introduces the tourist activities which include the content of violating relevant laws and regulations, the travel administration shall order it to make corrections and confiscate illegal gains, and a fine of RMB20,000 to RMB100,000 is imposed; if situation is serious, the travel agency business license shall be revoked.
Article 53 In case a travel agency, in violation of the Regulation, provides tourism service information including false content or false information for tourists, penalty shall be imposed by the administration of industry and commerce by law.
In case a travel agency, in violation of the Regulation, solicits tourists at the quota lower than the tourist cost, penalty shall be imposed by the competent price administration according to law.
Article 54 In case a travel agency, in violation of the Regulation, provides other paid services to tourists beyond the tourist contract without permission, the travel administration shall order it to make corrections and a fine of RMB10,000 to RMB50,000 is imposed.
Article 55 The travel administration shall order it to make corrections, and a fine of RMB20,000 to RMB100,000 is imposed; if situation is serious, the administration shall order it to suspend business to make remedies from 1 month to 3 months, in case a travel agency, in violation of the Regulation, is in any of the following cases:
(1) Fail to sign tourist contract with tourists;
(2) The tourist contract signed with tourists fails to state the items as prescribed in Article 28 of the Regulation;
(3) Entrust tourist business to other travel agency without the permission of tourists;
(4) Entrust tourist business to unqualified travel agency; or
(5) Fail to sign commission contract with the entrusted travel agency on receiving tourists.
Article 56 In case a travel agency, in violation of the Regulation, organizes Chinese mainland residents to conduct outbound tourism but fail to arrange a lead guide for the tour group throughout the tour, the travel administration shall order it to make corrections, and a fine of RMB10,000 to RMB50,000 is imposed; for those declining to make corrections, the administration shall order them to suspend business to make rectification from 1 month to 3 months.
Article 57 In the event tour guide and lead guide entrusted by a travel agency, in violation of the Regulation, fails to hold the guide certificate or lead guide certificate as prescribed by the state, the travel administration shall order him to make corrections, and a fine of RMB20,000 to RMB100,000 is imposed on the travel agency.
Article 58 In case a travel agency, in violation of the Regulation, does not pay its employed tour guides and lead guides or gives the pay lower than the standard of the local lowest salary, it shall be punished in accordance with relevant provisions in the Labor Contract Law of the People’s Republic of China.
Article 59 The travel administration or the administration of industry and commerce shall order it to make corrections, and a fine of RMB100,000 to RMB500,000 is imposed; the travel administration shall order tour guide and lead guide to make corrections and a fine of RMB10,000 to RMB50,000; if situation is serious, the travel agency business license, tour guide certificate or lead guide certificate shall be revoked, in case a travel agency violates the Regulation as follows:
(1) Decline to fulfill the obligation in the tourist contract;
(2) Alter the tour schedule in tourist contract not for force majeure; or
(3) Cheat and threaten tourists to do shopping or participate in tours that shall be separately paid.
Article 60 In case a travel agency, in violation of the Regulation, requires a tour guide and lead guide to receive the tour group that fails to pay for reception and service, or pay less than the cost of reception and service or requires a tour guide and lead guide to undertake related expenses of tour group, the travel administration shall order it to make corrections and a fine of RMB20,000 to RMB100,000 is imposed.
Article 61 In case a travel agency violates the tourist contract and impairs the legitimate rights and interests of tourists while necessary remedial measures are not adopted, the travel administration or the administration of industry and commerce shall order it to make corrections, and a fine of RMB10,000 to RMB50,000 is imposed; if situation is serious, the travel administration shall revoke the travel agency business license.
Article 62 In any of the following cases in violation of the Regulation, the travel administration shall order it to make corrections and suspend business to make rectifications from 1 month to 3 months; and if the circumstance is serious, the travel agency license shall be revoked:
(1) If the travel agency fails to pay the entrusted one for the reception and service;
(2) If the travel agency pays the entrusted one less than the cost of reception and service; or
(3) If the entrusted travel agency receives the tour group that fails to pay or pays insufficiently for reception and service.
Article 63 The travel administration orders it to make corrections and a fine of RMB20,000 to RMB100,000 shall be imposed on the travel agency; a fine of RMB4000 to RMB20,000 shall be imposed on the tour guide and lead guide; if situation is serious, the administration shall order the travel agency to suspend business to make rectifications from 1 month to 3 months or revoke the travel agency business license, tour guide certificate and lead guide certificate, in case a travel agency and its entrusted tour guide and lead guide violates the Regulation in any of the following situations:
(1) If a travel agency fails to adopt necessary measures for handling situations endangering tourists’ security and timely report them;
(2) If a travel agency fails to timely report the situation where tourist organized to conduct outbound tourism stays illegally abroad and coordinate to provide the information of the immigrant; or
(3) If a travel agency fails to timely report the situation where the tourist received for inbound tourism stays illegally in China or coordinate in providing the information of the immigrant.
Article 64 In case a travel agency is imposed criminal penalty for hindering territory (border) management, it shall not engage in the travel agency business activities within five years upon the completion of penalty execution; in case a travel agency is revoked the license, its main responsible person shall not serve as the main responsible person in any travel agency within 5 years upon the revocation of the license.
Article 65 In case a travel agency impairs the legitimate rights and interests of tourists in violation of the Regulations herein, it shall bear corresponding civil liabilities; if crime is constituted, criminal liability shall be investigated in accordance with law.
Article 66 Directly responsible executive and other directly responsible persons shall be punished according to law, in case a travel administration or other relevant departments and their staff violate the Regulation in any of the following situations:
(1) Find illegal acts without handling them timely;
(2) Fail to timely release to the public the supervision and inspection on travel agency;
(3) Fail to timely handle the tourists’ complaints and inform tourists of the information related to investigation and punishment;
(4) Accept the presents from travel agency;
(5) Participate in the shopping activities or tours at the expense of travel agency; or
(6) Make private benefits for themselves, relatives and friends or other individuals and organizations via travel agency.
Chapter VII Supplementary Provisions
Article 67 For investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan investing to set up travel agency, the Regulation shall apply mutatis mutandis.
Article 68 The Regulation shall enter into effect as of May 1, 2009, when the Regulations on the Management of Travel Agencies issued by the State Council on October 15, 1996 shall be repealed simultaneously.
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