CHINA’S new tourism laws, specifically those that prohibit travel agencies from luring tourists with programmes that are priced unreasonably low and getting illegitimate gains by arranging shopping or providing tourism services that require additional fees, have started to impact some tourism sellers specialising in Chinese tour groups.
Commenting on the new restrictions which will come into play on October 1, Nanjing-based Enjoyingtour’s general manager, Sam Shen, said the Chinese outbound group tour segment would be “seriously affected” as about 80-90 per cent of tours comprised shopping.
Restrictions on the sale of optional tours also meant a loss of extra income, Shen lamented.
“South-east Asian itineraries will suffer the most because tours are often kept cheap and rely on shopping commissions and the sale of optional tours to boost earnings. Tour fares to that region will rise 50-80 per cent. Longhaul programmes, which are less reliant on shopping and optional tours, will cost only 30-40 per cent more.
“For instance, our Singapore/Malaysia/Thailand tour which used to cost RMB3,000 (US$490) will now be readjusted to RMB13,000,” he said.
Yea Hwa Park, director of South Korea’s Tai San Tours, a travel company that receives tour groups from China among its other businesses, also projected pricier group fares as a result of the new tourism laws. “Chinese travellers may now have to pay RMB8,000 instead of the current RMB4,000,” she said.
Beijing International Studies University, professor for tourism, Tony Zou, said: “The onset (of the implementation of the new tourism laws) will be most challenging for group tour sellers, as tour fares will be doubled and consumers will need convincing. However, the illegal practice of zero-fare tours and commission fees have plagued consumers for years and must be resolved with one fell swoop. Consumers will eventually get used to (pricier tour fares) as they had paid even more for tours that included shopping commissions.”
China’s new tourism laws also dictate that all information disseminated by travel agencies to draw clients must be true and accurate, and a guide be provided for tour groups. The latter is expected to further raise operating costs for tour companies.
Having aniticipated the impact of the new tourism laws, Enjoyingtour shifted its sales attention to the FIT segment last year. Shen said: “We are targeting young Chinese travellers who prefer free-and-easy trips to islands such as the Maldives. This is a growing segment and we are doing quite well.”
