Tourism law takes effect, 300,000-yuan fine for lousy agency

China's first tourism law takes effect today, aiming to clean up industry nuisances such as forced shopping, price irregularities and arbitrary route changes.

The law is the first of its kind to take effect in the country in the wake of rising consumer complaints and disputes from the country's booming yet less-regulated tourism industry.

The law bans forced purchases of products, “zero or negative-fare tours,” and extra activities not on the itinerary. It will be a sting for agencies and tour guides who rely on kickbacks and rebates from shopping spots and from extra charges for unscheduled activities.

Travel agencies violating the new rules could face a penalty of up to 300,000 yuan (US$49,014) as well as license revocations.

Despite an intention to protect tourists, the law is generating controversy before it takes effect. Some fear it will push up the price of packaged tours.

As a result of the looming crackdown, prices of tour packages are rising 20-30 percent on average in the country, and as high as 50 percent at agencies heavily dependent on kickbacks, according to a Shanghai Daily previous investigation. 

A packaged trip to Cambodia during the National Day holiday week in October, for example, is priced at 9,000 yuan, up at least 30 percent from before. A tour to Taiwan has risen a third, and a 14-day coast-to-coast tour in the United States shot up to 32,800 yuan from 20,400 yuan, according to the investigation.

Authorities would have to carry out close and tight supervision to avoid the new law ending up a paper tiger, warned some tourism industry experts.

There may be one benefit of the law in terms of personal adventure. More people may be willing to strike out on their own by planning individual trips. experts said.

Sourced: TravelDailyNews