Travel Organizers Face New Scrutiny

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 ◆ Travel Organizers Face New Scrutiny

The State Administration of Foreign Exchange (SAFE) yesterday issued a circular tightening the management of travel agencies' foreign exchange activities in a move designed to prevent draining of the State's foreign exchange resources. The circular is also aimed at supporting efforts made by the National Tourism Administration (NTA) to regulate the inbound and outbound tourism markets, a SAFE official said. The circular, which goes into effect on March 1, stipulates that only travel agencies approved by the NTA to handle outbound tourism business for Chinese citizens will be allowed to buy foreign currencies on behalf of individual tourists. The circular also says travel agencies must restrict their services to destinations approved for Chinese tourists by the State. Domestically funded international travel agencies will be required to open special foreign exchange accounts for inbound and outbound tourism. So far, 15 countries and regions, including Japan, Australia, New Zealand, South Korea, Hong Kong, Macao and most of the Southeast Asian nations, have been approved as outbound destinations for Chinese tourists. Chinese tourists will be allowed to buy up to US$1,000 for trips to Hong Kong and Macao and up to US$2,000 for vacations in other places. As overseas travelling becomes more popular in China, travel-related foreign currency exchanges are having an increasing influence on the country's balance of international payments, the SAFE official said. A lack of regulation in the travel sector has led to a chaotic foreign exchange situation, he explained. He also claimed a number of unauthorized travel organizations are taking clients to countries which have not yet been approved as tour destinations. "The issuing of the circular will help put a stop to threatening activities and create a healthy environment for the development of standardized travel agencies," he said.