Interim Provision on the Establishment of Foreign Holding and Wholly
Foreign-owned Travel Agencies

Decree of the State Administration of Tourism of the People's
Republic of China and the Ministry of Commerce of the People's
Republic of China
No.19

June 12, 2003

Article 1 In order to adapt to new situation upon China's accession
to the WTO and further open tourism to the outside world and promote
the development of travel agency industry, the Provision is
formulated in accordance with the relevant laws and regulations of
China on foreign-invested enterprises, the Regulation on Travel
Agency Management and the relevant provisions.

Article 2 The Provision is applicable to the foreign holding and
wholly foreign-owned travel agencies established in China during
transition period prior to the scheduled term committed by China
upon its accession to the WTO.

Article 3 The foreign investor for establishing a foreign holding
agency shall be eligible for the following conditions:
(1) Being a travel agency or an enterprise mainly undertaking
tourism;
(2) With total annual amount of tourism more than USD40m;
(3) Being a member of the national (regional) association of
tourism;
(4) Being in good international credit with advanced management
experience of travel agency;
(5) Abiding by Chinese laws and the relevant Chinese regulations of
tourism.
Article 4 For the foreign investor of wholly foreign-owned travel
agency, besides meeting the conditions prescribed in Article 3 (1),
(3), (4) and (5) of the Provision, the annual total amount of
tourism prescribed in (2) should be more than USD500m.
Article 5 The Chinese investor of a foreign holding agency shall
meet the conditions prescribed in Article 29 of the Regulation of
Travel Agency Management.
Article 6 The foreign holding and wholly foreign-owned travel agency
to be established shall meet the following conditions:
(1) In compliance with development planning of tourism;
(2) In compliance with the requirements of tourist market;
(3) With investors meeting the conditions prescribed in Articles 3,
4 and 5 of the Provision; and
(4) With registered capital no less than RMB4m.
Article 7 The eligible foreign investor can establish a foreign
holding and wholly foreign-owned travel agency in the national
tourist and holiday area approved by the State Council and 5 cities,
including Beijing, Shanghai, Guangzhou, Shenzhen and Xi''an.
Article 8 In general, for an investor applying for establishing
foreign holding and wholly foreign-owned travel agencies, only one
agency will be approved.
Article 9 The Application for establishing foreign holding and
wholly foreign-owned travel agencies shall be processed by reference
with the procedure for examining and approving of foreign-invested
travel agencies as specified in the Regulation of Travel Agency
Management.
Article 10 The foreign holding and wholly foreign-owned travel
agencies may not directly or in disguise engage in tourism
businesses relating to going abroad of Chinese citizen or Chinese
people in other regions going to Hong Kong, Macao, and Taiwan
regions.

Article 11 The responsibility for interpretation of the Provision
shall be vested with the State Administration of Tourism and the
Ministry of Commerce.

Article 12 The Provision shall come into force 30 days after their
promulgation.