CNTA relaxes requirements for foreign-invested travel agencies

Sep. 2, 2009 (China Knowledge) - The China National Tourism Administration recently announced relaxed policies enabling foreign enterprises to set up travel agencies in China more easily, sources reported.

According to the new regulation, CNTA will start accepting applications from foreign-invested travel agencies on Sep. 15. The minimum registered capital required for setting up a foreign-invested travel agency has been lowered from RMB 4 million to RMB 300,000.

Foreign-invested travel agencies must have a fixed place of business and the necessary business facilities, and must fulfill the minimum registered capital requirement to apply for a business license. Applications will be reviewed and approved or denied by CNTA within 30 working days.

Although China has loosened its control of foreign-invested travel agencies, the county still does not allow these agencies to conduct outbound travelling business, which would be the key advantage these international travel agencies would have over domestic ones.

Nippon Travel Agency, which has already set up a wholly-owned travel agency in China, along with other overseas tourism industry participants, also noted that the opening of outbound travel business in China would mean more to foreign-invested travel agencies and said that the minimum registered capital requirement change does not make much difference to foreign-invested travel agencies that already take a long-term view of development in the Chinese market.