Source: People's Daily | 03-19-2009 16:38

The "Regulations on Travel Agencies," effective on May 1, 2009, stipulates that foreign investors will be allowed to set up foreign travel agencies in China. This is according to information released at a press conference for "Regulations on Travel Agencies" held by the Legislative Affairs Office of the State Council and the National Tourism Administration in Beijing on the morning of March 18.

The "Regulations on Travel Agencies" is the result of a comprehensive amendment to the "Regulations on the Management of Travel Agencies" promulgated by the State Council in 1996. According to promises China made for entry into the WTO, the new regulation stipulates that in addition to Chinese-foreign equity and contractual joint ventures, foreign investors can also set up foreign travel agencies.

An official from the National Tourism Administration said foreign travel agencies will be entitled to national treatment in the three major tourism markets -- inbound, outbound and domestic tours. Foreign travel agencies that operate for two years without receiving administrative punishment for infringing on tourists' legal rights and interests will be allowed to apply to operate outbound tours.