Revised rules 'help lift travel market'

The move to slash the amount of capital needed by foreign-owned travel agencies to set up in China will further widen the market and help reduce rogue operators, said senior tourism officials yesterday.

The financial requirement to run inbound and domestic tours has been lowered to just 300,000 yuan ($44,000) in the revised Regulations on Travel Agencies, which will take effect on May 1.

It is a sharp drop from the previous minimum of 4 million yuan for foreign-funded agencies and 1.5 million yuan for Chinese tour companies. Also, the quality guarantee deposit for all operators was cut to just 200,000 yuan to help reduce running costs.