Sunday, June 15, 2003
China to allow foreign-owned tour agencies from July
Reuters Beijing, June 14
China will allow foreign travel firms to set up solely owned agencies or take a controlling stake in joint ventures from mid-July in a step to meet its WTO commitments, the country's tourism regulator announced. Foreign operators would be able to open outlets in five major cities -- Beijing, Shanghai, Guangzhou, Shenzhen and Xi'an -- and at government designated resort areas, the National Tourism Administration said on its Web site, www.cnta.gov.cn.
It said in a circular dated June 12 that the new provisions would come into effect in 30 days.
The government pledged to open its lucrative tourism market to foreign players under the terms of its entry into the World Trade Organisation in December 2001.
It has said it would allow foreign partners in joint ventures to hold majority stakes by 2003 and allow fully foreign-funded companies by 2005. China has already approved at least a dozen Sino-foreign joint venture travel agencies.
Foreign-controlled companies would be barred from organising tours of Chinese citizens travelling overseas or to Hong Kong, Macau and Taiwan, the circular said.
Only foreign companies with annual revenues of $500 million or more would be allowed to set up solely owned agencies, while those seeking a controlling stake in a joint venture would be required to have revenues of at least $40 million, it said.
Foreign firms normally would be limited to establishing one venture with registered capital of no less than four million yuan ($483,200), it said.
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