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Viewing cable 07TAIPEI167, NEW PRC REGULATIONS DO LITTLE FOR TAIWAN TRAVEL AGENTS

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Reference ID Created Released Classification Origin
07TAIPEI167 2007-01-23 08:42 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei 
VZCZCXRO5417
RR RUEHCN RUEHGH RUEHVC
DE RUEHIN #0167 0230842
ZNR UUUUU ZZH
R 230842Z JAN 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 3825
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
 
UNCLAS TAIPEI 000167 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS USTR 
STATE FOR EAP/TC 
COMMERCE FOR 3132/USFCS/OIO/EAP/WZARIT 
TREASURY FOR OASIA/LMOGHTADER 
USTR FOR STRATFORD, ALTBACH 
 
E.O. 12958: N/A 
TAGS: ECON PREL CH TW
SUBJECT: NEW PRC REGULATIONS DO LITTLE FOR TAIWAN TRAVEL AGENTS 
EAGER TO TAP MAINLAND MARKET 
 
Ref: A) Taipei 90, B) Taipei 133 
 
1. As Taiwan's travel industry eagerly awaits a cross-Strait 
agreement on tourism, now expected to be finalized in spring 2007 
(reftels), Beijing announced revised regulations making it easier 
for foreign travel agents to operate in China.  The China National 
Tourism Administration Director General Shao Qiwei announced on 
January 18, 2007, that China would ease capital requirements for 
foreign travel agents to establish subsidiaries in China.  The 
required investment will be lowered from Renminbi (RMB) 2.5 million 
(US$320,000) to RMB 300,000 (US$39,000) starting in July 2007. 
Beijing also eliminated quota restrictions on the number of offices 
that could be opened.  However, foreign firms will still be limited 
to offering only domestic China tourism services. 
 
2. Taiwan's two largest tour companies, Set Tour and Phoenix Tours 
International Inc., have reacted to the announcement by saying they 
would like to have the ability to offer international travel 
services from China-based offices.  Nevertheless, both said they 
would take advantage of the new measures to establish wholly-owned 
subsidiaries in China in expectation of future market opening.  Set 
Tour has already set up offices in Shanghai and Dalien through a 
joint venture with a local travel agent.  With its own offices, the 
firm hopes to more effectively take advantage of the anticipated 
opening of Taiwan to Mainland tourists. 
 
YOUNG#