The Ministry of Transportation and Communications is to tighten regulations on unlicensed hostels and hotels in September, officials said yesterday as they previewed the new rules.
The amendments to the Act for the Development of Tourism (發展觀光條例) would increase penalties for tourism and hospitality establishments that fail to meet standards or operate without a permit, the ministry wrote in the preview.
These changes aim to strengthen market order and enhance consumer protections, the ministry stated.
Photo courtesy of Taipei Department of Information and Tourism
Tourism industry businesses that fail to meet legal standards would be required to rectify any issues identified by officials or face a maximum fine of NT$300,000 (US$10,202), up from the current NT$150,000, it said.
In cases of noncompliance or threats to consumer safety, the business license of an entity could be revoked, it added.
Unlicensed tour agencies and hotels would face a maximum fine of NT$2 million, up from the current NT$500,000, it said.
Hostels operating without a permit could be fined between NT$100,000 and NT$1 million, an increase from the current range of NT$60,000 to NT$300,000, the ministry said.
Advertising a business without a valid operating license would become an offense, punishable by a fine of NT$100,000 to NT$1.5 million, up from NT$30,000 to NT$300,000, it said, adding that companies in breach of the provision would be required to remove the advertisement, and failure to comply could result in additional fines.
Tour agencies without insurance to cover potential failure to fulfill their contractual obligations would be suspended, and would be required to correct the issue within three months or face a fine ranging from NT$30,000 to NT$500,000, the ministry said.
The public comment period for the new regulations would remain open for 60 days, beginning from yesterday’s announcement, the ministry said.
Meanwhile, 1,637 illegal accommodations nationwide were fined a combined NT$54.83 million in the first half of this year, Tourism Administration data showed.
Taipei had the highest number of illegal accommodations, with 268 cases — 31.49 percent of all its accommodations — and the city imposed NT$13.92 million in fines, also the highest in the nation.
From January to last month, there were 3,291 legal hotels and 12,351 legal homestays nationwide, an increase of 28 and a decrease of 482 respectively, compared with the same period last year, the data showed.
The number of illegal hotels stood at 1,061 and illegal homestays at 565, both lower than last year.
A total of 8,725 inspections were carried out nationwide, resulting in 673 penalties and NT$54.83 million in fines, the data showed.
In Taipei, inspections found 583 legal accommodations and 268 illegal ones, the highest in absolute numbers in and the proportion of illegal to legal accommodations, it showed.
In Taichung, 502 legal accommodations and 222 illegal ones were inspected, placing third in the number of illegal cases, but second in proportion.
Yilan ranked third in proportion, with 223 illegal accommodations out of 2,430 legal ones, or 8.4 percent.
Kaohsiung had 528 legal accommodations and 118 illegal ones, with illegal accommodations accounting for 18.26 percent.
Additional reporting by Tsai Yun-jung and Lery Hiciano
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