Market Access

‧ According to China’s WTO commitments, foreign firms could provide services in designated tourist resorts and in Beijing, Shanghai, Guangzhou and Xian in the form of JV travel agencies and tour operators immediately after accession.
‧ Foreign-invested travel agencies are allowed to engage in in—bound and domestic tourism but may not arrange tours for Chinese nationals to Hong Kong, Macau, Taiwan or foreign countries. They may not establish branches in China.
‧ According to the Interim Provisions on the Establishment of Foreign Majority Owned, Foreign Wholly Owned Travel Agencies revised by MOFCOM on 17 February 2005, geographical restrictions are lifted and foreign investors may set up majority— or wholly—owned travel agencies in all Chinese cities. However, approval is usually granted for the establishment of only one travel agency by each foreign investor.
‧ For foreign investors investing in the construction, renovation and operation of hotels and restaurants, restrictions on equity and the form of establishment have been lifted.

Establishment of Foreign-invested Travel Agencies:

To establish travel agencies in China, the foreign investor must meet the following conditions:
(a) It must be a travel agency or an enterprise mainly engaged in tourism business.
(b) It must have an annual tourism turnover of over US$40 million. To establish a wholly foreign—owned travel agency, it must have a total annual tourism turnover of over US$500 million.
(c) It must be a member of the travel industry association in its home country/region.

Application Procedures for Establishment of JV Travel Agencies

(a) The Chinese investor should submit the application and required documents to the National Tourism Administration.
(b) The National Tourism Administration will review the application and issue the foreign-funded travel agency operation approval letter upon approval of the application.
(c) The applicant should apply to the Ministry of Commerce for the establishment of FIE by presenting the approval letter and the contract signed by the Parties concerned and articles of association.
(d) The Ministry of Commerce will issue the FIE approval certificate upon approval of the application after reviewing the contract and articles of association, and notify the applicant to apply for a travel agency business license from the National Tourism Administration.
(e) The applicant should complete registration formalities with the administration for industry and commerce by presenting the travel agency business license and FIE approval certificate.

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