With the implementation of the Travel Agency Rule on May 1, 2009, some major changes will apply to travel agencies in Yantai, Shandong.
Smaller travel agencies in the city are concerned, since under the new rule travel service providers will be allowed to provide inbound travel service but they need to pay a deposit of RMB200,000 instead of RMB100,000, which will put more pressure on these smaller companies.
Local media in Yantai cited a manager from a new travel agency on Shengli Road as saying that the new rule will add more funding pressure for smaller travel agencies, and a manager from another small travel service provider on Beima Road said that even though domestic travel service providers are allowed to provide inbound travel services, it is still difficult for them to attract clients due to their size.
China Hospitality News said that unlike small travel agencies, large travel service providers in Yantai are optimistic of the prospects brought by the new rule.
A manager named Sun from a large travel agency on Yantai South Street told media that as a travel service provider that is allowed to run international travel services, the deposit they need to pay for the service decreased from RMB1.6 million to RMB1.2 million.
In addition, under the new rule they won’t have to give part of the interest of their deposit to the supervision department as they do now. All this is good for their capital turnover.
According to a representative from Yantai Municipal Tourism Bureau, small travel agencies might be incorporated into bigger ones or required to operate as one of their branches after the new rule takes effect.
However, the Tourism Department says that small travel agencies don’t have to be so worried as more favorable measures will soon be made for them.