Joint statement issued by China Consumers' Association and Hong Kong Consumer Council

Suggestion to strengthen protection of outbound travelers' consumer rights

1. The number of outbound travelers from Mainland has greatly increased in recent years and likewise complaints lodged by Mainland tourists in relation to shopping arrangements during tours have also risen. Many complained that they were taken to designated shopping places and were forced to make purchases so that tour guides could get rebates.
    
2. Joint investigation of China Consumers' Association and Hong Kong Consumer Council reveals that the root of the problem is market structure and improper trade practices in the industry.
    
3. It is not uncommon for the travel agencies which recruit consumers to get all the tour fees and then pass the tour group on to another agency, often up to several times. This results in "zero reception fee" as the reception agency receiving the tour group at the destination very often gets no money to cater for food, accommodation and transportation expenses at all. There are even "negative reception fee" tours as the reception agencies sometimes have to "buy" tour groups from the recruiting agencies. In this case, the reception agencies have to rely on rebates from tourists' purchases and fees for optional tours to make up for all land reception expenses. This leads to tourists being pressurized by tour guides to spend money on shopping.
    
4. Under the current system, consumers are unable to make a right choice since the tour fare paid by consumers may have no direct relation to the quality of reception. Tour agents at recruiting and receiving ends sell and buy travelers without regard to consumer welfare. Under the zero fare arrangement, there is no guarantee of service quality even if tourists had paid high tour fares.
    
5. To protect the consumer rights of outbound travelers, China Consumers' Association (the umbrella body of over 3,000 consumer associations in the Mainland) and consumer associations in Mainland provinces and major cities together with the Hong Kong Consumer Council issue this joint statement. Purpose of the statement is to urge authorities in charge of tourism to take necessary actions to protect the interest of outbound tourists and to call upon the travel industry to desist from trade malpractices.
    
6. To tourism regulatory authorities:
    
   1. Strengthen regulation of outbound tour operators.
       
   2. Ensure that all travel agencies sign a model contract devised for optimum consumer protection with reception agencies at outbound destinations.
       
   3. Prohibit the practice of "selling" tour groups. Recruiting agencies should choose reputable destination agencies and make proper arrangements in accordance with terms and conditions stated on the signed contract.
       
   4. Forbid improper practice of "zero" or "negative" reception fee which leads to unfair competition and prohibit commercial bribery and misleading advertisements.
       
7. To the travel industry:
    
   1. To adopt responsible trade practices and adhere to high standard of business ethics.
       
   2. Industry should enhance self-regulation. The offer of lower prices and special services to elderly and children by some tour operators should be commended and encouraged.
       
   3. Provide accurate and detailed itinerary, including sightseeing spots, transportation and accommodation arrangements e.g. star-rating of hotels.
       
   4. Prohibit tour guides from pressurizing tourists to make purchases or join optional tour items. Prices of optional tour items should not be raised without prior notice.
       
   5. Take good care of all members of the tour group and take proactive steps to mediate with consumers should disputes arise.
       
8. Advice to consumers to exercise their power:
    
   1. Join only tours organized by travel agencies which have registered with government authorities and request the disclosure of the names of the destination reception agencies. Choose agencies which are well-established and with good reputation. Beware of low-price traps, do not go for low price tours blindly. Similarly, high prices do not necessarily guarantee good quality. It all depends on the credibility of travel agencies. Hence, always look for the registration number (if applicable) of the tour agent as well as other satisfaction guarantee programmes which may lend credit to the tour package. They must also obtain the name of the travel agent at the receiving end.
       
   2. Ask for explanation on differences between "shopping tours" and other tours when signing up. Pay attention to the itinerary provided by travel agent including sightseeing spots, number of designated shopping stops, name of hotels and star-rating of same.
       
   3. Pay attention to the consumer protection laws and measures of destination countries. For example, many shops in Europe, America and Australia have unconditional refund guarantee. Different Quality Assurance schemes of retail shops are also available in many countries.
       
   4. When problems arise, consumers should pursue the issue with the Mainland travel agents, including the one with which the consumer signed up for the tour and lodge complaints with relevant regulatory bodies. The agents in Mainland should bear the responsibility and give redress to the consumers first.

The joint statement is being released simultaneously and nationally at 11:00am this (Friday) morning by a China Consumer Associations network of 46 higher-level provincial (省級以上) consumer associations in the mainland.

The network covers 31 provincial consumer associations, 8 Separate Planning Cities (計劃單列市) i.e. Shenzhen City (深圳) , Qingdao City (青島) , and 7 Sub-Provincial Municipals (副省級市) i.e. Harbin City (哈爾濱) , Xian City (西安) , Jinan City (濟南) .

The information is being disseminated to reach 3,200 consumer organizations in the mainland, and in Australia, Thailand, Singapore and Malaysia:

• Australia
  Australia Consumers Association (ACA)
   
• Malaysia
  Federation of Malaysian Consumer Association (FOMCA)
   
• Thailand
  Foundation for Consumer
   
• Singapore
  Consumer Association of Singapore

* Denotes Individual Travellers