China National Tourism Administration and Ministry of Commerce, Establishment of Foreign-controlled and Wholly Foreign-owned Travel Agencies Tentative Provisions

Promulgated: June 12 2003
Effective: 30 days after the date of promulgation
Interpreting authority: China National Tourism Administration and Ministry of Commerce

Main contents: The Provisions set forth the qualifications that a foreign party should possess for setting up a foreign-controlled travel agency. For instance, it should have an annual trade volume in tourism of at least US$40 million (Article 3). Setting up of a wholly foreign-owned travel agency requires an annual trade volume in tourism of at least US$500 million (Article 4). Qualified foreign investors may set up foreign-controlled or wholly foreign-owned travel agencies in State holiday resort areas, and in Beijing, Shanghai, Guangzhou, Shenzhen and Xian (Article 7). A foreign investor will generally be allowed to set up only one foreign-controlled or wholly foreign-owned travel agency (Article 8). The foreign-controlled or wholly foreign-owned travel agency to be set up should conform with the development plans for tourism and the demand of the tourism market, and have registered capital of at least Rmb4 million (Article 6).
Related legislation: Administration of Travel Agencies Regulations, Oct 15 1996, CLP 1997 No.1 p10