Temporary Rules of Foreign Investors Establishing Travel Agencies In China

China National Tourism Administration (CNTA) and Ministry of Commerce issued a temporary rule of foreign investors establishing proprietary and single proprietary travel agencies on June 12, 2003.

The rule is laid down according to related law of foreign- invested enterprises, Management Regulations of Travel Agencies and related rules, aiming at meeting China¡¯s WTO commitments and developing tourism.
Foreign investors will be able to open proprietary and single proprietary travel agencies in five major cities--Beijing, Shanghai, Guangzhou, Shenzhen, Xi'an, and as well as at government designated resort areas

The rule applies to foreign proprietary or single proprietary travel agencies established in China in the transition period before the target term of China¡¯s WTO commitments
Foreign investors who will open proprietary or single proprietary travel agencies in China should be travel agencies or enterprises dealing in tour business, tourism association member of their own countries, have good international reputation and advanced travel agency management experience. They should also observe China¡¯s law and related regulations of China tourism.

Foreign investors with annual revenues more than $40 million will be allowed to set up proprietary travel agency and those with annual revenues of at least $500 million will be allowed to establish single proprietary travel agency.

Foreign proprietary or single proprietary travel agencies should keep with tourism developing programme and meet the needs of tourism market

Foreign-invested travel agencies will be barred from organizing tours of Chinese citizens travelling overseas or to Hong Kong, Macau and Taiwan

Both CNTA and Commerce Ministry have the right of interpretation of the rule.
The rule will come into effect in 30 days after being issued