Implementation Opinions on Relaxing the Policy for Travel Agencies to Establish Service Outlets

National Tourism Administration Lvfa (2015) No. 211, "Notice of the National Tourism Administration on matters related to relaxing the policy on the establishment of service outlets by travel agencies." The document clearly stipulates that "in order to implement the spirit of the "Several Opinions on Promoting the Reform and Development of the Tourism Industry" (Guofa [2014] No. 31)", "it is allowed to establish agencies within the administrative divisions of the province (city, district) where they are located and its The number of service outlets established within the administrative division of the districted city where the branch is located is not restricted.”

This is a great benefit for the tourism industry, especially for channel operations that have widely opened service outlets. For businessmen, the administrative barriers to cross-regional operations have been removed and the development of the tourism market has been promoted.

However, this divided management system has at least the following disadvantages in the development of travel agencies:

First, it limits the geographical expansion of travel agencies. Jurisdictions at all levels require travel agencies to be established before service outlets can be opened, resulting in a burden on enterprises in terms of personnel and funds. A province has multiple prefecture-level cities and county-level cities. If they all require travel agencies to open outlets, multiple subordinate travel agencies must be set up and multiple deposits must be paid. Especially if you want to leave the country, the deposit will take up millions.

As a result, many travel agencies have given up expanding in the province. At most, they will set up travel agencies and service outlets in places with a slightly larger market, but the cost has greatly increased.

2. Some smaller cities cannot receive services from large travel agencies. Since the cost of starting service outlets is too high, big brand travel agencies often do not enter cities where there are not many service outlets. Local travel agencies often do not have the right to exit the country, which results in local travel agencies affiliated with large travel agencies to open branches. This is not the best option for consumers and both local and branded travel agencies.

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