Licensing Criteria Licensing Travel Agents in Hong Kong
- a22162
- Oct 7, 2022
- 9 min read
Updated: Feb 9
Licensing Criteria Licensing Travel Agents in Hong Kong
It is illegal to operate a travel agent business in Hong Kong without a license.
A person is considered to be operating an outbound travel agent business if they:
In Hong Kong: Arrange transportation (starting in Hong Kong and mainly outside Hong Kong) or accommodations (outside Hong Kong) for others.
Outside Hong Kong: Arrange transportation or accommodations as described above and actively market these services to the Hong Kong public (regardless of where the marketing occurs).
However, a person is not considered to be operating an outbound travel agent business if they:
Are the operator of the transportation.
Are the operator of the accommodation or arrange accommodation for 28 days or more.
A person is considered to be operating an inbound travel agent business if they, in Hong Kong, arrange any of the following for visitors to Hong Kong:
Transportation (starting outside Hong Kong and ending in or passing through Hong Kong immigration).
Accommodation in Hong Kong.
Services like sightseeing, restaurant meals, shopping trips, or local transport connected to these services.
However, a person is not considered to be operating an inbound travel agent business if they:
Are the operator of the transportation.
Are the operator of the accommodation or arrange accommodation for 28 days or more.
Are the owner or operator of the sightseeing, restaurant, shopping, or local transport service.
Finally, even if a person meets the criteria for outbound or inbound travel agent business, they are not considered to be operating a travel agent business if:
Their main business is not the travel agent activities described.
The travel agent activity is secondary to their main business.
Licensing Criteria
Criteria for issue of a travel agent licence
The Travel Industry Authority (TIA) may grant a travel agent license to an applicant who meets the following criteria:
The applicant must be a company, partnership, or individual operating as a sole proprietor.
The applicant must be deemed suitable to hold the license (suitability requirement).
Suitability Requirement
To be granted a travel agent license, an applicant must be deemed "suitable." The specific suitability requirements depend on the applicant's business structure:
1. Companies:
Suitability Assessment: The Travel Industry Authority (TIA) will assess the suitability of all officers and controllers of the company, as well as officers and controllers of any associated companies. Any relevant information the TIA possesses regarding the associated company will be considered.
Paid-up Share Capital: The company must have a paid-up share capital of at least HK$500,000.
2. Partnerships:
Suitability Assessment: The TIA will assess the suitability of each partner, considering factors such as:
Mental capacity (no mental disorders as defined in the Mental Health Ordinance).
Criminal record (no convictions for fraud, corruption, dishonesty, violence, or offenses under the Travel Industry Ordinance or Trade Descriptions Ordinance).
Previous licensing and business conduct records (under the Travel Agents Ordinance and Travel Industry Ordinance).
Suitability of individuals responsible for managing the travel agent business.
Capital Requirement: The aggregate of all partners' capital accounts must be at least HK$500,000.
3. Individuals (Sole Proprietors):
Suitability Assessment: The TIA will assess the individual's suitability, considering factors such as:
Bankruptcy status (no undischarged bankruptcy).
Debt arrangements (no compositions, schemes of arrangement, or assignments for creditors).
Mental capacity (no mental disorders as defined in the Mental Health Ordinance).
Criminal record (no convictions for fraud, corruption, dishonesty, violence, or offenses under the Travel Industry Ordinance or Trade Descriptions Ordinance).
Previous licensing and business conduct records (under the Travel Agents Ordinance and Travel Industry Ordinance).
Suitability of individuals responsible for managing the travel agent business.
Capital Requirement: The individual must meet a capital requirement.
Capital Requirement
The capital requirements for a travel agent license applicant are as follows:
Partnerships: The combined total of all partners' capital accounts must be no less than HK$500,000.
Individuals (Sole Proprietors): The amount in the individual's capital account must be no less than HK$500,000.
In addition to meeting the capital requirement, the applicant must also meet a separate guarantee money requirement.
Guarantee Money Requirement
Applicants for a new travel agent license or a license renewal must deposit guarantee money with the Travel Industry Authority (TIA). This money serves as a guarantee for the payment of any financial penalties imposed on the licensed travel agent.
Here are the specific requirements for the guarantee money:
Amount: HK$500,000.
Form: A bank guarantee.
Duration: The guarantee must be valid for the duration of the license plus an additional six months.
Issuer: The guarantee must be issued by an authorized institution as defined in section 2(1) of the Banking Ordinance (Cap. 155).
Format: The guarantee must be in the form specified by the TIA.
Exemption for Pre-existing License Holders:
Holders of licenses that existed before the current licensing regime are generally not required to deposit guarantee money. However, the TIA may require these license holders to deposit guarantee money under the following circumstances:
Change in Ownership/Control: If the original ownership or control of the travel agent changes by more than 50%, the travel agent may be required to deposit the full HK$500,000 guarantee.
Accumulated Penalties: If the total financial penalties imposed on the travel agent exceed HK$100,000 within a single year, the travel agent may be required to deposit HK$250,000 in guarantee money. If the accumulated penalties exceed HK$100,000 again in the same year, another HK$250,000 may be required.
Finally, the applicant must also meet the authorized representative requirement.
Authorized Representative Requirement
A travel agent license applicant must nominate an individual to serve as their authorized representative. The Travel Industry Authority (TIA) will only approve this individual if they are deemed suitable and are not already serving as an authorized representative for another licensed travel agent (unless it's the same applicant).
To determine suitability, the TIA will consider various factors, including:
Bankruptcy: Whether the individual is an undischarged bankrupt.
Debt Arrangements: Whether the individual has entered into any debt arrangements with creditors.
Mental Capacity: Whether the individual has any mental disorders as defined in the Mental Health Ordinance.
Criminal Record: Whether the individual has been convicted of any criminal offense, particularly those involving fraud, corruption, dishonesty, violence, or offenses under the Travel Industry Ordinance or Trade Descriptions Ordinance.
Licensing and Business Conduct Record: The individual's record related to travel agent licenses, tourist guide/escort passes, and their conduct in the travel industry (including compliance with the Travel Industry Council's directives and the Travel Industry Ordinance).
Association with the Business: The individual's role in the travel agent business (e.g., director, manager, partner, sole proprietor). A "manager" is defined as someone performing managerial functions under the directors' authority, excluding receivers, managers of property, and special managers appointed under the Companies (Winding Up and Miscellaneous Provisions) Ordinance.
Authorized Representative Course: Whether the individual has completed a TIA-specified authorized representative course.
Qualification Requirements: The individual must meet one of the following:
Completion of Hong Kong Form 5/Senior Secondary 3 (or equivalent) and at least 5 years of management experience in the travel industry.
At least 10 years of management experience in the travel industry.
Authorized representatives have specific duties, and failure to fulfill them may result in the TIA requiring them to cease acting as a representative.
Finally, the applicant must have paid the required fee (as detailed in the TIA's Fee Table).
Criteria for Issue of Business Permit
The Travel Industry Authority (TIA) may issue a business permit for a specific local place of business to a licensed travel agent if the following conditions are met:
The applicant must hold a valid travel agent license.
The local place of business and its location must be suitable for conducting travel agent business. This means they must comply with the requirements outlined in paragraphs 1.2 to 1.4 of the Directives for Licensees regarding local places of business.
The applicant must have paid the relevant fee.
Application for Licence and Business Permit
Anyone conducting travel agent business (as defined in section 4 of the Travel Industry Ordinance) in Hong Kong must have a travel agent license, regardless of whether they operate from a physical storefront. A "local place of business" is defined as a business location in Hong Kong that is generally accessible to the public. If a licensed travel agent operates from such a location, they must also have a business permit for that specific location.
For information on the criteria for obtaining a travel agent license and business permit, please click the link. To apply for a travel agent license, please click the link.
Travel Agent Licence
To apply for a travel agent license, applicants must:
Submit an application to the Travel Industry Authority (TIA) using the specified form.
Provide their correspondence address and email address on the application form.
Submit any documents required by the TIA.
Pay the applicable fee.
For details on the criteria for issuing a travel agent license, please click the link. For information on the application procedures, required documents, and fees, please click the link. To apply for a business permit, please click the link.
Business Permit
Licensed travel agents who operate their business from a physical location in Hong Kong that is generally accessible to the public (a "local place of business") must have a business permit for that location. To apply for a business permit, licensed travel agents must:
Submit an application to the Travel Industry Authority (TIA) using the specified form.
Provide the address of the local place of business where they intend to conduct travel agent activities.
Submit any documents required by the TIA.
Pay the applicable fee.
For details on the criteria for issuing a business permit, please click the link. For information on the application procedures, required documents, and fees, please click the link.
How to Apply
Completed application forms and supporting documents for the Travel Industry Authority (TIA) can be submitted in one of two ways:
By Mail or Delivery: Send them to: Travel Industry Authority 8/F, South Island Place, 8 Wong Chuk Hang Road, Wong Chuk Hang, Hong Kong
In Person (by appointment): Schedule an appointment to submit your application and/or documents in person (or through a representative) at the TIA office by clicking the link.
The required application fee must accompany the application and can be paid either:
In cash at the TIA office.
By cheque payable to "Travel Industry Authority."
Application Procedures
The application process for a license or business permit involves the following steps:
Download and Complete: Download the appropriate application form and fill it out completely.
Prepare Documents: Gather all the required supporting documents. Be aware that some documents, particularly for first-time applicants, must be either originals or copies certified by a practicing solicitor in Hong Kong. Do not send cash or original documents by mail.
Submit Application: You have two options for submitting your application, documents, and fee:
By Appointment: Make an appointment to submit everything in person at the TIA office.
By Mail: Mail the application, required documents (copies only, no originals or cash), and fee to the TIA office.
Follow Up: If the TIA staff requests any follow-up action (e.g., missing documents), respond promptly. Communication from the TIA will typically be via telephone and/or email.
Wait for Notification: Wait for the TIA to notify you of the application result. This notification is usually sent by email.
Collection/Receipt of License/Permit/Card: The method for receiving your license, permit, or card depends on the type of application and the collection method you indicated on the form:
Travel Agent License or Business Permit: You can either make an appointment to collect the license and/or permit in person or wait for it to be mailed to your correspondence address.
Tourist Guide License or Tour Escort License: You will receive an email containing an electronic license (PDF file). For the physical tourist guide card or tour escort card, you can either make an appointment to collect it or wait for it to be mailed to your correspondence address.
Required Documents
License and business permit applicants must submit specific supporting documents. These documents vary depending on the applicant's business structure:
Companies: A specific list of required documents exists for company applicants.
Partnerships or Sole Proprietorships: A different set of required documents applies to partnerships and sole proprietorships.
Business Permit Applications: There's a separate list of required documents specifically for those applying for a business permit.
Online Booking
You can schedule an appointment online to visit the Travel Industry Authority (TIA) office for the following purposes:
Submitting a new application for a license or business permit.
Submitting a renewal application for a license or business permit.
Collecting a newly issued or renewed license or business permit.
Submitting an application for shop registration.
To make an appointment, please click the link.
Fee
The application must be accompanied by the required fee. The fee may be paid:
by cash at the TIA office; or
by cheque (payable to “Travel Industry Authority”).
How Bestar can Help
Licensing Criteria Licensing Travel Agents in Hong Kong
Bestar can help travel agents in Hong Kong with the licensing process in several ways:
Comprehensive Guidance: Bestar provides in-depth knowledge and guidance on the specific requirements and procedures for obtaining a travel agent's license in Hong Kong. This includes understanding the necessary documentation, application forms, and regulatory compliance.
Document Preparation Assistance: We can assist in preparing all the required documents, such as the application form, statement of particulars, board resolution, and key executive information. This ensures that all documents are accurate and complete, minimizing the risk of delays or rejections.
Company Registration and Setup: If you need to establish a company to operate as a travel agent, Bestar can help with the company registration process, including choosing the appropriate company structure and ensuring compliance with local regulations.
Office Space Procurement: We can assist in finding and securing suitable office space that meets the licensing requirements, ensuring that it is appropriately equipped and compliant with industry standards.
Membership Acquisition: Bestar can help you obtain the necessary memberships with the Travel Industry Council (TIC) and relevant travel associations, which are essential for obtaining a travel agent's license.
Application Submission and Follow-up: We can submit your completed application to the Travel Industry Authority (TIA) and follow up on the progress of your application, ensuring timely processing and communication with the authorities.
By leveraging Bestar's expertise and services, travel agents can streamline the licensing process and increase their chances of obtaining a license efficiently and smoothly.
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