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Highlights of the Travel Agents Ordinance (TAO)

• Definition of "Travel Agent"

  Under the TAO, a travel agent can be classified as an outbound travel agent or an inbound travel agent:

  • Outbound Travel Agent

    Section 4 of the TAO defines an outbound travel agent as a person who carries on the business in Hong Kong of obtaining for another person-

    1. carriage by any means of conveyance on a journey which is to commence in Hong Kong and which thereafter is to take place mainly outside Hong Kong; or
       
       
    2. accommodation at a place outside Hong Kong for which payment is, or is to be, made to that person by or on behalf of that other person of an amount of the cost of that accommodation,

    except where-

    1. the provider of the carriage is himself the operator of that carriage; or
       
       
    2. the accommodation being provided at any one place is to be occupied by the same person for a period exceeding 14 days.
       
       
  • Inbound Travel Agent

    Section 4A of the TAO defines an inbound travel agent as a person who carries on the business in Hong Kong of obtaining for a visitor to Hong Kong-

    1. carriage, by any means of conveyance, on a journey which is to commence outside Hong Kong and which either -
       • terminates in Hong Kong; or
       • involves the visitor passing through immigration controls before departing from Hong Kong; or
         
         
    2. accommodation in Hong Kong for which payment is, or is to be, made to that person by or on behalf of the visitor of an amount on account of the cost of that accommodation; or
       
       
    3. one or more of the following prescribed services -
       
       
       • sightseeing or visits to local places of interest;
       • restaurant meals or other catered meals;
         
       • shopping trips;
       • local transport in connection with an activity referred to in item (c)(i), (c)(ii) or (c)(iii) above.

    except where-

    1. the provider of the carriage is himself the operator of that carriage; or
       
       
    2. the accommodation being provided is to be occupied by the same person for a period exceeding 14 days.
       
       
    3. the provider of the prescribed services is himself the owner or operator of the service being provided to the visitor.
       

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• Appointment of the Registrar of Travel Agents

  Section 5 provides for the appointment by the Chief Executive of the Registrar of Travel Agents (the Registrar).

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• Advisory Committee on Travel Agents

  Section 7 provides for the establishment of the Advisory Committee on Travel Agents (ACTA), its composition and the appointment of its chairman and members.

  Section 8 provides that the function of the ACTA is to advise the Chief Executive on such matters relating to the administration of the TAO or to be in the interests of travel agents and persons using the services of travel agents.

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• Restriction on operating as a travel agent

  Section 9 prohibits any person to carry on business as a travel agent-

  1. without a licence; or
     
     
  2. at a place other than that specified in that licence; or
     
     
  3. not in accordance with the conditions of that licence (which includes membership of an "approved organization" which at present is the Travel Industry Council of Hong Kong)
     

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• Refusal of licence
  • Section 12(1) empowers the Registrar of Travel Agents to refuse to grant a licence if he is of the opinion that-
    
    
    1. the applicant or any person in Hong Kong responsible for the management of the business of the travel agent is not a "fit and proper" person to carry on business as a travel agent; or
       
       
    2. the premises to which the application relates or the situation thereof are not suitable for the operation of the travel agent.
    
    
  • Section 12(2) specifies that in determining whether a person is fit and proper, the Registrar shall have regard to whether that person -
    
    
    1. has been convicted of an offence involving fraudulent, corrupt or dishonest acts whether in Hong Kong or elsewhere;
       
       
    2. has been convicted of an offence against any provision of the TAO;
       
       
    3. if that person is an undischarged bankrupt;
       
       
    4. in the case of a body corporate, is in liquidation or is the subject of a winding up order;
       
       
    5. is otherwise not a fit and proper person.
       

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• Effect and duration of licence

  Section 13 stipulates that the licence should be in a prescribed form, requires a licensee to pay a prescribed fee, empowers the grant of a licence valid for a period of up to 12 months, and enables the authorization of the person named in the licence to carry on business as a travel agent at any place specified in that licence.

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• Change of ownership or control

  Section 16 stipulates that any change in the ownership or control of a travel agent requires the prior approval of the Registrar of Travel Agents in writing.

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• Suspension and revocation of licence

  Section 19 empowers the Registrar of Travel Agents to suspend or revoke a licence if-

  1. a licensee who is an individual becomes a mentally disordered person;
     
     
  2. the licensee has ceased to carry on business as a travel agent;
     
     
  3. upon investigation, the Registrar considers that any matter under section 12(1) applies or the travel agent is operating contrary to public interest;
     
     
  4. the licensee has failed to pay any levy or any financial pentitley under the provisions of the TAO;
     
     
  5. the licensee is no longer a member of the Travel Industry Council of Hong Kong.
     

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• Investigation by the Registrar

  Section 21 empowers the Registrar to conduct investigations into the business of a travel agent if he suspects it to be carried on contrary to public interest.

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• Travel Industry Compensation Fund

  Section 32A to 32G provide for the establishment of the Travel Industry Compensation Fund (TICF) and the TICF Management Board, set out the Board's composition and the appointment of its chairman and members, and delineate its functions and powers. Of particular note are the provisions for the Board's authority to make ex gratia payments from the TICF (section 32E) to outbound travellers and to make rules (section 32G) in respect of such payments.

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• Levies

  Sections 32H and 32I provide for contribution by travel agents of levies to the Travel Industry Compensation Fund and the Travel Industry Council of Hong Kong.

  The Travel Industry Compensation Fund levy has been suspended with effect from 3 July 2009 . Starting from the same day, travel agents are only required to contribute 0.15% of every outbound fare to the Travel Industry Council of Hong Kong as Council levy.

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• Offences

  Section 48 sets out the offences in contravention of the various provisions of the TAO and the maximum pentitleies for such offences. For example, any person who contravenes section 9 is liable on conviction upon indictment to a fine of $100,000 and to imprisonment for 2 years or on summary conviction to a fine of $10,000 and to imprisonment for 6 months.

  The above is only intended as a guide to some of the provisions of the Travel Agents Ordinance and should not be taken as an authoritative or definitive interpretation of the Ordinance. Viewers should refer to the full text of the Ordinance at the Department of Justice's Bilingual Laws Information System on Internet homepage at https://www.elegislation.gov.hk if they wish to acquaint themselves with its original version