Protecting the rights of tourists

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Thomas Latt

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Sep 20, 2013, 12:57:29 AM9/20/13
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Protecting the rights of tourists

By THO XIN YI



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New law deals with longstanding problem of forced shopping and optional tours for tourists to make up for low package fares.

FROM Oct 1, the Tourism Law that protects the rights and interests of both tour operators and tourists in domestic and outbound travel will come into effect in China.

The law was adopted by the Chinese legislature in April.

One of the highlights in the new law is aimed at addressing a longstanding problem of forced shopping and optional tours to make up for low package fares.

In China, the “zero-fare package” is a popular term used to describe cheap tours offered by travel agencies to boost sales.

The companies then recover their costs and earn profits through collecting commissions at mandatory shopping sites and add-on tours.

Article 35 of the law prohibited travel agencies from luring tourists with unreasonably low prices or getting illegitimate gains such as rebates by arranging for shopping programmes or providing optional tourism services that require additional payments.

However, such arrangements are allowed provided that the requests are made by the tourists or when both sides had reached a prior agreement.

Should travel agencies be found to have violated the rule, tourists have the right to return the purchases and be paid for the returned goods in advance.

The travel agencies are also required to refund payments made for tourism services that require additional payments.

At a recent meeting between Malaysian Tourism Promotion Board (MTPB) chairman Datuk Seri Dr Ng Yen Yen and Chinese travel agencies in Beijing, Dr Ng said the industry would need time to get accustomed to the new regulations.

Ivy Alliance Tourism Consulting founder and chief executive officer Wang Xinjun said Article 35 would motivate the industry to improve and refine its products.

“It will weed out the tour companies that have been using “zero-fare tours” to lure customers.

“The rights of the customers to ask for correct information about products and services are protected by the law,” he said.

Wang said the industry expects to have a short-term impact on the growth of outbound tourism.

“The package fares will be increased and this may affect the number of people taking overseas tour packages in the next three months,” he said.

According to Dr Ng, the number of Chinese tourists visited Malaysia in the first half of this year 943,756, an increase of 24.5% over the same period last year.

Wang said the number of outbound tourists might record slower growth, but he is optimistic about the positive effects in the long run.

“It will enhance the quality of the tourism products offered,” he said.

The Commercial Times in a front page story on Sept 9 reported that the package fares for South East Asian countries saw an increase of up to 100% in Shenyang, Liaoning Province.

It said a 10-day trip to Singapore, Malaysia and Thailand, which previously cost between 4,500 yuan (RM2,400) and 6,000yuan (RM3,170), is now priced between 8,000 yuan (RM4,230) and 11,000 yuan (RM5,810).

The previous package contained 11 shopping stops while the new one has none.

An 11-day and nine-night holiday to the same countries is priced from 12,380 yuan (RM6,540) on the website of a travel agency, Jettour.

It highlighted that the trip does not have any mandatory shopping stops and optional tours. Tourists would not be asked to tip either.

The China National Tourism Administration (CNTA), in a statement on its website on Tuesday, reminded tour operators to abide by the Tourism Law.

“Tour agencies should take the initiative to adjust their operations accordingly. Stop the practice of attracting customers with low prices and then earning profits through mandatory shopping stops and other activities that require add-on fees.

“Those who break the law will be punished,” it warned.

Article 98 said the operations of the travel agencies will be suspended by the relevant authority with its illegal gains confiscated.

A fine of between 30,000 yuan (RM15,800) and 300,000 yuan (RM158,000) will also be imposed.

If the illegal gains were valued over 300,000 yuan, the amount in fine will be set at one to five times the amount of the illegal gains.

“When the circumstances are serious, its travel agency business licence may be revoked.

“As for the person-in-charge and others directly liable, their illegal gains shall be confiscated and a fine of between 2,000 yuan (RM1,060) and 20,000 yuan (RM10,600) shall be imposed,” it said.

Tour guides and tour leaders also risk having their certificates provisionally suspended or revoked.

Meanwhile, Apple Vacations and Convention Sdn Bhd senior manager of tour Gwen Teng said the new law would not affect Malaysian tourists visiting China for the time being.

“However, we are waiting and see if it would spur the growth of domestic tourism in China, as Chinese nationals might choose to take holidays within the country instead of going overseas due to the price hike.

“If the demand for domestic holidays increases, it will affect the costs of our China tours,” she said.

 

> The opinions expressed here are entirely the writer’s own.

Nansein Than

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Sep 25, 2013, 3:09:16 AM9/25/13
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Dear TTA,
Thanks for your information.
Best regards, NST


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