The Tourism Bureau yesterday said it was considering easing the rules for paid-in capital for class B travel agencies to encourage young people to enter the local tourism industry.
The Regulations for Administration of Travel Agencies (旅行業管理規則) divide firms into three categories: consolidated travel agencies, class-A and class-B.
Class-B travel agencies can only offer domestic tours and the minimum paid-in capital is set at NT$3 million (US$97,283).
Agencies in the category also need to pay the bureau a deposit of NT$600,000 and must purchase surety insurance of at least NT$8 million to cover contracts with customers.
The bureau proposed amendments to lower the paid-in capital requirement to NT$1.5 million, it said.
The change was proposed to encourage young people and start-ups to enter the domestic tourism industry, Technical Affairs Division head Liu Shih-ming (劉士銘) said.
However, if the proposal is to be implemented, the bureau must also discuss the possibility of reducing the deposit and insurance thresholds, Liu said, adding that it would convene a meeting to discuss the issues.
Democratic Progressive Party Legislator Yu Wan-ju (余宛如) said that young people wanting to start a local tourism business often encounter legal obstacles.
The proposed amendment would help transform the tourism industry by bringing in smaller, local tour operators, Yu said.
The minimum paid-in capital for consolidated and class-A travel agencies is NT$30 million and NT$6 million respectively.
The former has to pay a deposit of NT$10 million and the latter NT$1.5 million, while their insurance requirements are NT$60 million and NT$20 million respectively.
Consolidated and class-A travel agencies can offer domestic and international tours, and sell flight, ship and bus tickets on behalf of transportation companies.
The main difference is that consolidated travel agencies can contract class-A or class-B travel agencies to advertise international or domestic tours that they arrange, but class-A agencies cannot.
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