The China National Tourism Administration (CNTA) will return up to 70% of the deposits of travel agencies to help them cope with the fall in the number of tourists because of the global financial crisis.
Inbound travel firms usually have to deposit have to RMB100,000 ($14,500) with the CNTA, while the amount for outbound agencies is RMB1.6 million($233,000).
The CNTA uses the deposits to compensate tourists who suffer losses or meet with accidents during tours because of travel agencies’ faults.
CNTA said travel agencies across the country can get back 50 to 70% of their deposits before the end of January
Does that make all travel agents happy?
Zhan Jungyu, marketing manager of China M&R Special Tours, said the deposit refund would not be of much help. ‘We don’t need money. We need tourists. The government has cut down its plans for the travel industry and reduced funds for business travel. This is a hard time for us.’
Liu Ping, general manager of Beijing Xinxin Travel Services, said, ‘I don’t even want to bother claiming a deposit refund.’
She said, ‘It is the small travel agencies, lacking cash flow, which claim their deposits, not us. So instead of returning deposits, it would be better if the government slashed our business tax.
Source: China Daily