TRAVEL AGENTS ORDINANCE

TRAVEL AGENTS ORDINANCE

LAWS OF HONG KONG

TRAVEL AGENTS ORDINANCE

CHAPTER 218





CHAPTER 218

TRAVEL AGENTS ORDINANCE

ARRANGEMENT OF SECTIONS

Section Page

PART I

PRELIMINARY

1. Short title ..........................3
2. Interpretation and application .......3
3. Exemption ............................4
4. Travel agents ........................4
5. Registrar of Travel Agents ...........5
6. Register .............................5
7. Advisory Committee on Travel Agents ..5
8. Functions of Advisory Committee ......6

PART II

LICENSING

9. Restriction on operating as a travel agent 6
10. Application for travel agent's licence 6
11. Grant of licence ....................7
IIA. Registrar's direction as to membership of an approved organization 7
12. Refusal of licence ..................8
13. Effect and duration of licence ......10
14. Duties of licensee ..................10
15. Renewal of a licence ................10
16. Change of ownership or control ......10

PART III

REGISTRAR'S POWERS IN RELATION TO LICENSEES

17. Interpretation ......................11
18. Registrar's powers following request for change in ownership and control 11
19. Suspension and revocation of licence 11
20. Notice of intention to revoke .......12
21. Registrar may conduct investigation .12
22. Registrar's powers of investigation .12
23. Notices .............................12
24. Duty of person given notice .........13
25. Privileges and immunities in connection with investigations 13
26. Payment of witness expenses .........13





Section..................................... Page
27. Practice and procedure ................13
28. Costs .................................13
29. Powers to prohibit departure from Hong Kong 14
30. Notification of revocation ............15

31. Effect of suspension or revocation ........... 15

32......................................Appeal 15
PART IV
RESERVE FUND
33..........................Establishment of Reserve Fund 16
34..........................Payments from the Reserve Fund 16

PART V
FINANCIAL
PROVISIONS

35....................................(Repealed) 16
36...................................Bank account 17
37...............................Investment of moneys 17
38...............................Accounts and reports 17
39.....................................Auditors 17
40............Statements etc. to be laid on table of Legislative Council 18
41..............................Cost of administration 18

PART VI
PAYMENTS FROM THE
RESERVE FUND

42..................................Interpretation 18
43....................Entitlement to apply for ex gratia payment 19
44..............................Payment from the Fund 19

PART VII

MISCELLANEOUS

45.........................Registrar's power of inspection 20
46........Registrar's powers in relation to records kept in non-legible form 20
47..........................Publication of advertisements 21
48.....................................Offences 21
49....................Liability for offences by bodies corporate 22
50...................................Regulations 22
51......................................Notice 22

52. No liability in the case of the bona fide exercise of functions under the

Ordinance .............................22
53......................Financial Secretary may amend Schedule 23
54...................................Transitional 23

Schedule. Approved organizations and association members 23





CHAPTER 218

TRAVEL AGENTS

To provide for the control and regulation of travel agents providing travel services
in respect of travel outside or outward from Hong Kong, the appointment of a
Registrar of Travel Agents, the establishment of an Advisory Committee on
Travel Agents, the licensing of travel agents, the establishment of a reserve
fund and for matters connected therewith or incidental thereto.

[Part I (sections 1 to 8) 13 December 1985 L.N. 346 of 1985
Section 9 in Part II 1 February 1986L.N. 31 of 1986
Sections 10 to 13 in Part II 13 December 1985 L.N. 346 of 1985
Sections 14 to 16 in Part II 1 February 1986 L.N. 31 of 1986
Sections 17 to 31 in Part III
Section 32 in Part III 13 December 1985L.N. 346 of 1985
Section 33 in Part IV
Section 34 in Part IV 1 February 1986L.N. 31 of 1986
Part V (sections 35 to 41) 13 December 1985 L.N. 346 of 1985
Part VI (sections 42 to 44) 1 February 1986 L.N. 31 of 1986
Sections 45 and 46 in Part VII
Section 47 in Part VII 1 June 1986 L.N. 110 of 1986
Section 48(1)(a) and (b) in Part VII1 February 1986 L.N. 31 of 1986
Section 48(1)(c) in Part VII 13 December 1985 L.N. 346 of 1985
Section 48(2) and (3) in Part VII 1 February 1986 L.N. 31 of 1986
Sections 49 to 52 in Part VII 13 December 1985] L.N. 346 of 1985

Originally 60 of 1985 70 of 1988, R. Ed.
1988

PART I

PRELIMINARY

1. Short title

This Ordinance may be cited as the Travel Agents Ordinance.

2. Interpretation and application

In this Ordinance, unless the context otherwise requires-

'Advisory Committee' means the Advisory Committee on Travel Agents
established under section 7;





'applicant', in relation to an application for a licence whether by way of renewal or
otherwise, includes a licensee; (Added 70 of 1988 s. 2)

'approved organization' means any body specified in Part I of the Schedule;
(Added 70 of 1988 s. 2)

,,association member' means any body specified in Part II of the Schedule; (Added
70 of 1988 s. 2)

'controller', in relation to a body corporate, means the person who controls the
body corporate and includes any person in accordance with whose directions
or instructions the directors thereof are accustomed to act;

'exempt person' means a person or class of persons granted an exemption under
section 3;

'licence' means a travel agent's licence granted under section 11 and 'licensed' and
'licensee' shall have corresponding meanings; (Amended 70 of 1988 s.2)

'qualified' means qualified in accordance with the constitution, rules or articles of
association of an approved organization or of an association member, as the
case may be; (Added 70 of 1988 s. 2)

'register' means the register kept by the Registrar under section 6;

'Registrar' means the Registrar of Travel Agents appointed under section 5;

'Reserve Fund' means the Travel Agents' Reserve Fund established under section
33;*

'travel agent means a person who carries on business as a travel agent within the
meaning of section 4;

'travel service' means a service provided through the carrying on of an activity
described in section 4(1)(a) or (b) in respect of the provision of which a person
is required to be licensed under this Ordinance.

3. Exemption

(1) The Registrar may exempt any person or class of persons from the

operation of this Ordinance.
(2) An exemption granted under subsection (1) shall be in writing.

(3) The Registrar shall give notice in the Gazette of any exemption

granted under this section.

4. Travel agents

(1) Subject to subsection (2), a person carries on business as a travel agent

if he holds himself out as carrying on the business of, and carries on the

business of, obtaining for another person

To be repealed-see 70 of 1988 s. 2(d).





(a)carriage, by any means of conveyance, on a journey which is to
commence in Hong Kong and which thereafter is to take place
mainly outside Hong Kong; or
(b)accommodation at a place outside Hong Kong for which
payment is, or is to be, made to that person by or on behalf of
that other person of an amount on account of the cost of that
accommodation.
(2) A person does not carry on business as a travel agent-
(a)under subsection (1)(a) in respect of carriage by means of
conveyance if the means of conveyance is one of which he is an
operator; or
(b)under subsection (1)(b) in respect of accommodation at any one
place if the accommodation is intended to be occupied by the
same person for a period exceeding 14 days at that place.
(3) In this section 'operator', in relation to a means of conveyance,
means the person who alone or with others has for the time being the
management of that means of conveyance.

5. Registrar of Travel Agents

(1) The Governor may appoint a public officer to be the Registrar of
Travel Agents.
(2) The Registrar shall be subject to directions by the Governor in the
performance of his duties and the exercise of any of his powers and functions
and shall comply with any such directions.

6. Register

The Registrar shall-
(a) establish and maintain a register in the prescribed form; and
(b)give such notice of the contents of the register as may be
prescribed.

7. Advisory Committee on Travel Agents

(1) There shall be an Advisory Committee on Travel Agents.
(2) The Advisory Committee shall consist of-
(a) a Chairman who shall be appointed by the Governor;
(b)the Registrar (who shall be an ex officio member and Secretary
thereof); and
(c) such other persons as the Governor may appoint.
(3) The Governor shall give notice of any appointment under subsec-
tion (2) by notice in the Gazette.





(4) A person appointed by the Governor to be a member of the Advisory
Committee

(a) shall hold office for such period as the Governor may determine;

(b)may resign at any time by notice in writing addressed to the
Secretary; and

(c)may be removed from office by the Governor if the Governor is
satisfied that such member is incapacitated by physical or mental
illness or is otherwise unable or unfit to discharge the function of a
member of the Advisory Committee.

8. Functions of Advisory Committee

The Advisory Committee shall have the following functions

(a)to advise the Governor on such matters relating to the administration
of this Ordinance or the carrying on of the business of a travel agent
as the Governor may refer to the Committee;

(b)to advise the Governor on such matters as the Committee may
consider to be in the interests of

(i) travel agents; and
(ii) persons using the services of travel agents; and

(c)to perform such other duties as are imposed or other powers as are
conferred on it by this Ordinance or as may be prescribed or which it
may lawfully exercise.

PART II

LICENSING

9. Restriction on operating as a travel agent

No person shall carry on business as a travel agent

(a) without a licence; or

(b) at any place other than the premises specified in that licence; or

(c)otherwise than in accordance with the conditions of that licence
imposed under section 11(1) or (IA). (Amended 70 of 1988s.3)

10. Application for travel agent's licence

(1) An application for a licence shall be made to the Registrar in the prescribed
form and manner, and shall be accompanied by the prescribed fee and a statement in
writing containing such particulars in respect of the application as may be
prescribed or as, in any particular case, the Registrar may require.





(2) An application made under this section by a body corporate may be signed
by any person authorized in that behalf by such body corporate and the Registrar
may require such proof of that authorization as he considers necessary.

(3) An application made under this section by a partnership shall be signed by
each partner.

(4) The Registrar shall, in such manner as may be prescribed, give notice of
every application made under this section.

11. Grant of licence

(1) The Registrar may grant a licence and may impose such conditions as he
thinks are necessary to protect the interests of persons who have recourse to travel
services offered by a travel agent.

(IA) Subject to subsection (IB), any licence granted by the Registrar under
subsection (1) shall be subject to the condition that the applicant shall be and
remain a member of an approved organization during the period that the licence is in
force. (Added 70 of 1988 s. 4)

(IB) The condition referred to in subsection (IA) shall apply

(a)to any licence granted under subsection (1) after the specified date in
respect of an application for a licence made under section 10; or

(b)to any licence granted under subsection (1) after the specified date in
respect of an application for the renewal of a licence made under
section 15. (Added 70 of 1988 s. 4)

(2) Any conditions imposed under this section shall be endorsed on the
licence.

(3) In the absence of any evidence to the contrary an applicant for the grant of a
licence under this section who is a member of an association member shall, if the
licence is granted, be treated as a member of an approved organization during the
period that the licence is in force. (Added 70 of 1988 s.4)

(4) In this section 'specified date' means a date specified by the Governor by
notice in the Gazette for the purposes of this section.* (Added 70 of 1988 s.4)

of an approved organization

(1) If the Registrar is satisfied that an applicant who

(a) is, or is qualified to be, a member of an association member; and

31 July 1988-L.N. 212 of 1988.





(b) is qualified to be a member of an approved organization; but
(e) has been refused membership of that approved organization,
is a fit and proper person to carry on business as a travel agent, the Registrar
shall direct that approved organization to accept that applicant as a member of
that approved organization in accordance with the constitution, rules or articles
of association of that organization and subject to the payment of such
membership fees (if any) as may be prescribed in that constitution or those rules
or articles of association.
(2) If the Registrar is satisfied that a licensee whose membership of an
approved organization has been suspended or revoked by that approved
organization is a fit and proper person to carry on business as a travel agent,
the Registrar shall direct that approved organization to reinstate or restore the
membership of that licensee in accordance with the constitution, rules or
articles of association of that approved organization as if that licensee's
membership had not been suspended or revoked by that organization.
(3) For the purpose of determining whether an applicant or licensee is a
fit and proper person under subsection (1) or (2), as the case may be, the
Registrar shall have regard to the matters referred to in paragraphs (a) to (e) of
section 12(2).
(4) The Registrar shall not direct an approved organization to accept the
applicant as a member of that organization under subsection (1) or to reinstate
or restore the membership of a licensee under subsection (2) without first giving
that organization an opportunity of being heard.
(5) For the purpose of conducting a hearing under subsection (4) the
Registrar may by notice in writing require the approved organization to furnish
him with such information, verified in such manner, as the Registrar may
specify, or to produce to him such documents relating to the refusal, suspension
or revocation of the applicant's or licensee's membership, as the case may be, as
are in the custody or under the control of that organization.
(6) On the acceptance of an applicant as a member of an approved
organization under subsection (1) the Registrar shall grant a licence to that
applicant subject to such conditions as he may impose under section 11(1).
(Added 70 of 1988 s. 5)

12. Refusal of licence

(1) The Registrar may refuse to grant a licence if he is of the opinion-
(a)in the case of an applicant other than an applicant who is a body
corporate that-
(i) the applicant, or, in the case of a partnership any partner
thereof, is not a fit and proper person to carry on business as
a travel agent;





(ii)any person in Hong Kong responsible or proposed to be
responsible for the management of the business of the travel
agent or any part thereof is not a fit and proper person to be
associated with the business of a travel agent; or
(iii)the premises to which the application relates or the situation
thereof are not suitable for the operation of the business of a
travel agent; or
(b) in the case of an applicant who is a body corporate that-
(i) the applicant is not a fit and proper person to carry on
business as a travel agent;
(ii) any controller of such body corporate is not a fit and proper
person to be associated with the business of a travel agent;
(iii) any director or secretary or officer thereof in Hong Kong, is
not a fit and proper person to be associated with the business
of a travel agent; or
(iv)the premises to which the application relates or the situation
thereof are not suitable for the carrying on of the business of
a travel agent.
(2) For the purposes of determining whether a person is a fit and proper
person under subsection (1), the Registrar shall have regard to the question of
whether that person-
(a) has been convicted, whether in Hong Kong or elsewhere, of an
offence the conviction for which necessarily involved a finding
that he acted fraudulently, corruptly or dishonestly;
(b) has been convicted of an offence against any provision of this
Ordinance;
(e) in the case of an individual is an undischarged bankrupt, has
entered into a composition or scheme of arrangement with his
creditors or has made an assignment of his estate for the benefit
of his creditors;
(d) in the case of a body corporate is in liquidation or the subject of
a winding up order, a receiver or manager of its property has
been appointed, has entered into a composition or scheme of
arrangement with its creditors or has made an assignment of its
estate for the benefit of its creditors; or
(e) is otherwise not a fit and proper person.
(3) The Registrar shall not refuse to grant a licence to an applicant under
subsection (1) or (5) without first giving the applicant an opportunity of being
heard. (Amended 70 of 1988 s. 6)
(4) Where the Registrar refuses to grant a licence to an applicant under
subsection (1) on the ground (or, if more than one, on grounds which include
the ground) that, in his opinion, any person as mentioned in subsection (1) is
not a fit and proper person, the Registrar shall notify the applicant in writing of





that opinion, the name of the person whose fitness is in question and the reason for
his opinion.

(5) The Registrar shall refuse to grant a licence if he is of the opinion that the
applicant is in breach of, or is unable to comply with, the condition imposed under
section 11(1A). (Added 70 of 1988s.6)

13. Effect and duration of licence

Every licence shall be in the prescribed form and shall

(a)not enter into force except on payment to the Registrar of the
prescribed fee; (Replaced 70 of 1988 s. 7)

(b)be valid for a period of 12 months, or such lesser period as may be
specified in the licence, from the date on which it is granted; and

(c)authorize the person named therein to carry on business as a travel
agent at any premises specified therein.

14. Duties of licensee

In addition to any conditions that may be imposed under section 11(1) or (IA)
every licensee shall comply with any prescribed requirement.

(Amended 70 of 1988 s. 8)

15. Renewal of a licence

(1) A licensee may apply for the renewal of his licence for a period not
exceeding 12 months. (Amended 70 of 1988 s. 9)

(2) An application by a licensee for the renewal of a licence shall be made
during the prescribed period and in the prescribed form.

(3) Sections 11 and 12 shall apply to the renewal of a licence under this section
as if for references to 'grant a licence' in those sections there were substituted
references to 'renew a licence'. (Added 70 of 1988 s. 9)

16. Change of ownership or control

(1) A licensee shall not change or permit any change of ownership or control of
his business as a travel agent without obtaining prior approval in writing from the
Registrar.

(2) A licensee who intends to change the ownership or control of his business
as a travel agent shall give notice in writing to the Registrar.

(3) Where notice is given to the Registrar under subsection (2), the Registrar
may by notice in writing require the licensee to furnish him with such information,
verified in such manner, as the Registrar may specify with respect to such change.





PART 111

REGISTRARS POWERS IN RELATION TO
LICENSEES

17. Interpretation

In this Part, 'person associated' in relation to a licensed travel agent includes

(a) the licensee;

(b) any employee of the licensee; or

(e)in the case of a licensee that is a body corporate, any controller and
any director, secretary or other officer thereof.

18. Registrar's powers following request for

change in ownership and control

Upon being given notice under section 16 by a licensee the Registrar may

(a) revoke the licence and issue a new licence;

(b)amend the licence including any conditions imposed under
section11(1);or (Amended 70 of1988 s. 10)

(c)subject to section 20, refuse consent to the change of ownership or
control if he is of the opinion that any of the matters referred to in
section 12(1) apply in relation to the proposed owner or controller.

19. Suspension and revocation of licence

(1) The Registrar may suspend or revoke a licence

(a)of a licensee who is an individual, if that person becomes a mentally
disordered person or patient as defined in section 2 of the Mental
Health Ordinance (Cap. 136);

(b)subject to section 20, if he is of the opinion that the licensee has
ceased to carry on business as a travel agent; or

(c) if, upon investigation under section 2 1, he is of the opinion that(i) any
of the matters referred to in section 12(1) apply; or

(ii)the licensee has been carrying on business as a travel agent
contrary to the public interest.

(2) The Registrar shall revoke a licence if he is of the opinion that the licensee is
in breach of, or is unable to comply with, the condition imposed under section
11(1A). (Added70 of 1988s.]])

(3) The Registrar shall not revoke a licence under subsection (2) without first
giving the licensee an opportunity of being heard. (Added 70 of 1988s.]])





20. Notice of intention to revoke

(1) The Registrar shall not suspend or revoke a licence under section 19(b) or
refuse consent under section 18(c) unless he first

(a)gives notice in writing to the licensee of his intention and the ground
upon which he proposes to suspend or revoke the licence or refuse
consent; and

(b) permits the licensee to make representations to him.

(2) Representations under subsection (1)(b) shall be made in writing and within
7 clear days from the date of notification under subsection (1) or such greater period
as is specified in the notice.

21. Registrar may conduct investigation

Where the Registrar suspects that the business of a licensee as a travel agent is
being carried on contrary to the public interest (whether an allegation has been made
against the licensee or not) he may conduct such investigation as he considers
necessary in respect of that business.

22. Registrar's powers of investigation

(1) For the purpose of an investigation of a business under section 21 the
Registrar may

(a)by notice in writing, require a person associated with the business

(i)to produce to him such documents relating to the business of
the licensee as are in the custody or under the control of that
person;

(ii)to give him all reasonable assistance in connection with the
investigation; and

(iii) to attend before him and to give evidence;

(b)receive such evidence as he considers relevant to the investigation
whether or not it would be admissible in a court; and

(c)require evidence (either orally or in writing) to be given on oath or
affirmation.

(2) For the purposes of subsection (1)(c) the Registrar may administer an oath
or affirmation.

23. Notices

Any notice given by the Registrar under section 22(1)(a)

(a) shall be signed by the Registrar;

(b)shall state the time when and the place where the person to whom the
notice is addressed shall comply with any requirement stated in the
notice;





(c) shall be served on the person to whom it is addressed; and

(d) may be served by post.

24. Duty of person given notice

A person given notice by the Registrar under section 22(1)(a)

(a) shall comply with any requirement stated in that notice;

(b)shall, subject to section 25, truly and fully answer questions put to
him by the Registrar;

(c)shall not knowingly furnish to the Registrar, whether in pursuance of
such requirement or otherwise, information that is false or misleading
in a material particular; and

(d) shall, if required by the Registrar, take an oath or affirmation.

25.Privileges and immunities in connection
with investigations

The Registrar, when conducting an investigation under section 21, and any
witness, counsel or solicitor appearing before the Registrar in connection with that
investigation, shall have the same privileges and immunities as they would have if
that investigation were a proceeding in a court.

26. Payment of witness expenses

(1) The Registrar may, in his discretion, pay any witness giving evidence or
attending to give evidence or produce books, papers or documents at any
investigation under this section such sum for his expenses and loss of time as the
Registrar may determine.

*(2) Any sum paid under subsection (1) shall be paid out of the Reserve Fund.

27. Practice and procedure

The Registrar may in respect of the conduct of an investigation under section
21 determine any form or matter of practice or procedure in so far as no provision is
made therefor under this Ordinance.

28. Costs

(1) After conducting an investigation under section 21 in relation to the
business of a licensee as a travel agent the Registrar may order the licensee to pay
the whole or a specified part of the costs of, or incidental to, that investigation.

To be repealed-see 70 of 1988 s. 12.





*(2) Any sum ordered by the Registrar to be paid by way of costs under this
section shall be a civil debt due from the person ordered to pay it to the Registrar
and may be recovered by the Registrar in his name accordingly.

**(3) The Registrar shall pay any sum received by him in settlement of an order
made under this section into the Reserve Fund.

29. Powers to prohibit departure from Hong Kong

(1) Where the Registrar, having decided to conduct an investigation under
section 21, is of the opinion that a person associated with the business of the travel
agent under investigation is able to assist him in connection with that investigation
and is about to, or likely to, leave Hong Kong, he may issue a certificate stating that
opinion and the name and last known place of abode, business or employment of
such person to a magistrate, who shall on receipt of a certificate purporting to be
under the hand of the Registrar make an order (in this section called---aprohibition
order') prohibiting such person from leaving Hong Kong.

(2) A prohibition order, any order under subsection (4) extending or renewing a
prohibition order and any order under subsection (7) discharging a prohibition order
shall be served by the Registrar on the Commissioner of Police, the Director of
Immigration and, if he can be found, the person named in that prohibition order.

(3) Any person in respect of whom a magistrate makes a prohibition order

(a)shall not leave or attempt to leave Hong Kong in wilful contravention
of that order;

(b)who leaves or attempts to leave Hong Kong in wilful contravention
of that order commits an offence and is liable to a fine of $10,000 and
to imprisonment for 6 months;

(c)who commits an offence under paragraph (b) may be arrested
without warrant by any immigration officer or police officer.

(4) A prohibition order shall lapse on the expiry of one month but the magistrate
may, on the application of the Registrar, extend or renew the order for a period which
does not exceed, with the initial period of one month and any other period of
extension or renewal, 3 months.

(5) Subject to subsection (6) a person named in a prohibition order may apply
to a magistrate for an order to discharge the prohibition order.

(6) A person applying under subsection (5) shall not later than 3 clear days
before making that application give notice in writing to the Registrar of his intention
to make such application and the time and place at which such application will be
made.

To be amended-see 70 of 1988 s.
13(a). To be amended-see 70 of 1988
s. 13 (b).





(7) On the hearing of an application under subsection (5) a magistrate may
discharge the prohibition order either absolutely or subject to such conditions as
the magistrate thinks fit.

(8) The Director of Immigration shall not be liable for any failure to prevent any
person named in a prohibition order from leaving Hong Kong.

30. Notification of revocation

(1) Every suspension or revocation of a licence by the Registrar under section
18 or 19 shall

(a) be notified-

(i) by notice in the Gazette; and
(ii) to the licensee by notice in writing; and

(b)take effect from the date of the notice given to the licensee under
paragraph (a)(ii), or such later date as may be specified in the notice,
notwithstanding that the licensee has appealed against the decision
under section 32, that the time limited for the making of such appeal
has not expired or that notice has not been given in the Gazette.

(2) A notice to the licensee under subsection (1)(a)(ii) shall include a statement
of the reasons on which the suspension or revocation is based.

31. Effect of suspension or revocation

The suspension or revocation of a licence under section 18 or 19 does not
operate so as to avoid or affect any right, obligation or liability under any
agreement, transaction or arrangement

(a)relating to the supply of a travel service entered into by a licensee
whose licence has been suspended or revoked at any time before the
suspension or revocation, as the case may be; and

(b)in relation to which a sum of money has been paid at any time before
that suspension or revocation.

32. Appeal

(1) Any person aggrieved by the decision of the Registrar

(a) to refuse to grant a licence under section 12(1);

(b) to impose conditions on a licence under section 11(1) or 18;

(c) to refuse consent under section 18(c);

(d) to suspend or revoke a licence under section 19(1); or

*(e) not to make an ex gratia payment under section 44(1),

To be repealed-see 70 of 1988 s. 14
(d).





may, within 1 month of being notified of that decision by the Registrar, appeal by
way of petition to the Governor in Council. (Amended 70 of 1988 s. 14)

(2) The Governor in Council may, in relation to an appeal under this section,
confirm or vary any decision of the Registrar or may give the Registrar such
directions as the Governor in Council thinks fit.

PART IV

RESERVE FUND

*33. Establishment of Reserve Fund

(1) The Registrar shall establish and administer a fund to be known as the
Travel Agents' Reserve Fund.

(2) The Reserve Fund shall consist of-

(a)moneys paid into the Reserve Fund by way of levy under section 35;

(b)interest and other income derived from the money and investments
comprising the Reserve Fund;

(c)moneys paid into the Reserve Fund by the Registrar under section
28; and

(d) other moneys lawfully paid into the Reserve Fund.

(3) The Public Finance Ordinance (Cap. 2) shall not apply to the Reserve Fund.

*34. Payments from the Reserve Fund

There shall be paid from the Reserve Fund the following-

(a) payments due under section 44;

(b) the cost of any administration fee charged under section 41; and

(c)any other sums required or permitted to be paid out of the Reserve
Fund under this Ordinance.

PART V

FINANCIAL
PROVISIONS

35. (Repealed 70 of 1988 s. 15)

To be repealed-see 70 of 1988 s. 15(1).





*36. Bank account

The Registrar shall open and maintain an account with a bank approved by the
Financial Secretary and shall pay all moneys of the Reserve Fund into that account.

*37. Investment of moneys

The moneys in the Reserve Fund may be

(a)deposited on fixed term or call deposit or in a savings account in any
bank licensed under the Banking Ordinance (Cap. 155); or

(b)invested in such other investments as the Financial Secrtetary may
direct, whether or not such investments are investments authorized
under the Trustee Ordinance (Cap. 29).

*38. Accounts and reports

The Registrar shall

(a)keep and maintain such accounts and records of all transactions of
the Reserve Fund as the Director of Accounting Services may
require; and

(b)prepare for the period from the commencement of this Ordinance to
31 March thereafter, and thereafter for each period of 12 months
ending on 31 March in each year

(i) a statement of the accounts of the Reserve Fund, which shall
include an income and expenditure account and balance sheet
and shall be signed by the Registrar; and

(ii)a report on the administration of the Reserve Fund during the
period covered by the accounts prepared under subparagraph
(i).

*39. Auditors

(1) The statement of accounts of the Reserve Fund prepared under section 38
shall be submitted by the Registrar to the Director of Audit not later than 31 July
next following the end of the period to which it relates or such later date as the
Governor may allow.

(2) The accounts of the Reserve Fund and the statement of the accounts shall
be audited by the Director of Audit who shall certify such statement subject to such
report, if any, as he may think fit.

(3) The Director of Audit shall be entitled to have access to all books of
account, vouchers and other records kept by the Registrar and to require such
information and explanation as he may think fit.

To be repealed-see 70 of 1988 s. 15 (1).





*40. Statements etc. to be laid on
table of Legislative Council

(1) The Registrar shall, within 3 months of the receipt by him of the audited
statement of accounts from the Director of Audit or within such further period as the
Governor may for any particular year allow, submit to the Governor a copy of the
audited statement of accounts together with the Director of Audit's report, if any,
and the report of the Registrar prepared under section 38.

(2) The Governor shall cause the statements and reports received by him under
subsection (1) to be laid on the table of the Legislative Council.

*41. Cost of administration

The Financial Secretary may direct that an annual administration fee to he
determined by him shall be charged to the income of the Reserve Fund and paid into
general revenue.

PART VI

PAYMENTS FROM THE RESERVE FUND

*42. Interpretation

In this Part-

applicant means a person making application under section 43;

'application' means an application made under section 43;

'client'\ means a person who has made payment to a licensee or his nominee in
connection with or in anticipation of that travel agent obtaining for him a travel
service;

'judgment' means a judgment of a court in Hong Kong for payment of a sum of
money and includes an award made under the Small Claims Tribunal Ordinance
(Cap. 338);

'proof of debt' means a proof of debt lodged with a liquidator appointed to wind up
a licensed company or with a trustee in bankruptcy of the estate of a licensee;
and

'unsatisfied' in relation to a proof of debt means

(a)in the case of a winding-up, that after conclusion of the winding-up
the full amount for which the proof of debt was admitted by the
liquidator under the Companies (Winding-up) Rules (Cap. 32 sub.
leg.) has not been paid; and

To be repealed-see 70 of 1988 s. 15 (1).





(b)in the case of a bankruptcy, that after the payment of a final dividend
the full amount for which the proof of debt was admitted by the
trustee in bankruptcy under the Proof of Debts Rules (Cap. 6 sub.
leg.) has not be paid.

*43. Entitlement to apply for ex gratia payment

(1) A client who has obtained a judgment against a person who was, when the
cause of action resulting in the judgment arose, a licensee or who has lodged a
proof of debt in respect of a licensee may apply for an ex gratia payment from the
Reserve Fund.

(2) An application under subsection (1) shall be in the prescribed form.

(3) No applicant shall apply for payment under this section in respect of any
loss or liability arising out of any payment made to a travel agent or any relationship
of client and travel agent entered into before the commencement of this Ordinance.

*44. Payment from the fund

(1) Subject to subsection (2) where it appears to the Registrar that the judgment
or the proof of debt referred to in the application is

(a)in respect of a loss incurred in respect of any payment for travel
services made by a client to a licensee; or

(b)in respect of a loss or (as the case may be) a liability incurred in
consequence of a breach by a licensee of any of his obligations as a
travel agent to his client; and

(e)in relation to ajudgment, unsatisfied despite reasonable efforts by the
applicant to enforce or pursue it; or

(d) in relation to a proof of debt, unsatisfied, he may make an ex gratia
payment to or on behalf of the applicant from the Reserve Fund of

(i) an amount equal to so much of the amount of that judgment (including
interest on the damages, costs of the judgment and costs of any
proceedings to enforce the judgment) or proof of debt as relates to
the matters set out in paragraph (a) or (b) and remains unsatisfied;
and

(ii) in the case of a proof of debt such amount by way of interest on the
amount paid under paragraph (i) as he thinks fit:

Provided that no payment shall be made for interest in respect of the period of
12 months next following the presentation of the winding-up petition or the
bankruptcy petition, or at a greater rate than is payable on a judgment under section
49 of the Supreme Court Ordinance (Cap. 4).

To be repeated-see 70 of 1988 s. 15(1).





(2)Before making payment under subsection (1) the Registrar may
require the applicant-
(a) to produce such information and evidence as may be relevant;
(b) to take further steps to enforce the judgment.

PART VII

MISCELLANEOUS

45. Registrar's power of inspection

(1) For the purpose of conducting an investigation under section 21 or of
ascertaining whether the provisions of this Ordinance are being or have been
complied with by any licensee, the Registrar, or any person authorized in
writing in that behalf by the Registrar on production of his authority (if
required), may enter any premises where-
(a) the business of a travel agent is being carried on; or
(b)he believes, upon reasonable grounds, that the books of account
of a person carrying on business as a travel agent are kept,
and demand production of and inspect the licence or any such books of account
and may make and take away notes, copies or extracts therefrom.
(2) Any person who-
(a)wilfully obstructs the Registrar or any person authorized by
him in writing under subsection (1) in the performance of his
functions under that subsection; or
(b)without reasonable excuse fails to give the Registrar or any
person authorized by him in writing under subsection (1) such
assistance or information as he may require in the performance of
his functions under that subsection,
commits an ofrence and is liable to a fine of $10,000 and to imprisonment for 6
months.

46.Registrar's powers in relation to records
kept in non-legible form

If any books of account required to be kept under this Ordinance are kept
by a licensee by recording any matters in question otherwise than in a legible
form, any power conferred by this Ordinance to require production of such
books or to take copies thereof or extracts therefrom shall be construed as
including power to require production of, and to take away, a reproduction of
the recording or of the relevant part of it in a legible form.





47. Publication of advertisements

(1) No person shall publish any advertisement referring to the provision of a
travel service by any person required to be licensed under this Ordinance unless
that advertisement relates to the provision of a travel service by a licensed travel
agent and the licence number of that licensed travel agent is stated clearly in the
advertisement.

(2) Any person who contravenes subsection (1) commits an offence and is
liable to a fine of $2,000.

(3) Where a person is charged with an offence under subsection (2) relating to
an advertisement, it shall be a defence for such person to show that he carries on the
business of publishing or arranging for the publication of advertisements, that he
received the advertisement for publication in the ordinary course of business and
that at the time he published the advertisement he believed upon reasonable
grounds that the advertisement related to the provision of a travel service by a
licensed person or an exempt person.

(4) In this section 'publish' includes issue, circulate, display, distribute or
broadcast.

48. Offences

(1) Any person who

(a) contravenes section 9;

(b) fails to comply with section 24; or

(e)makes any false or misleading statement or furnishes any false or
misleading information in connection with

(i) any application for the issue or renewal of a licence; or (ii)
any exemption under section 3; or

(iii) any request by the Registrar for information under this

Ordinance,
commits an offence and is liable

(A)on conviction upon indictment to a fine of $100,000 and to
imprisonment for 2 years; or

(B)on summary conviction to a fine of 510,000 and to imprisonment for 6
months.

(2) Any licensee who contravenes section 14 or 16(1) commits an offence and is
liable to a fine of 10,000.

(3) Where a person is charged with an offence under subsection (1)(a) it shall
be a defence for such person to show that the operation or business alleged to have
been carried on by such person was carried on only to the extent necessary to meet
an obligation incurred before the date on which this section came into operation.





49. Liability for offences by bodies corporate
When at any time a body corporate commits an offence under this
Ordinance with the consent or connivance of, or because of neglect by, any
individual, the individual commits the like offence if at that time-
(a) he is a controller of the body corporate; or
(b)he is a director, manager, secretary or similar officer of the body
corporate or is purporting to act as such officer or as agent of
such body corporate; or
(c)the body corporate is managed by its members, of whom he is
one.

50. Regulations
The Governor in Council may by regulation-
(a) regulate applications for licences and the renewal of licences;
(b) prescribe forms for the purposes of this Ordinance;
(c)prescribed the form of any certificate, notice, application or order
for the purpose of section 29;
(d)prescribed particulars to be supplied in connection with an
application for a licence;
(e)provide for the keeping and maintenance of the register;
provide for the proof of matters relating to licensing and
suspension and revocation of licences;
(g)prescribe fees for the licensing of persons as travel agents and
relating to the register;
(h)provide for the membership, powers, functions and procedure of
meetings of the Advisory Committee;
(i)provide for the duties of any person licensed under this
Ordinance;
(j)prescribe anything required or permitted to be prescribed under
this Ordinance; and
(k) provide for the better carrying into effect of this Ordinance.

51. Notices
Any notice required to be given or notified in writing to a licensee under
this Ordinance may be served by post addressed to the last address of the
licensee known to the Registrar.

52.No liability in the case of the bona fide exercise
of functions under the Ordinance
(1) No liability shall be incurred by any person in respect of anything
done or omitted to be done by him bona fide in the exercise or purported
exercise of any functions conferred or imposed by or under this Ordinance.





(2) In this section 'functions' includes powers and duties.

53. Financial Secretary maThe Financial Secretary may by notice in the Gazette amend the Schedule.
(Added 70 of 1988 s. 16)

*54. Transitional

(1) Notwithstanding the repeal of

(a) section 32(1)(e) by section 14(d) of the Travel Agents

(Amendment) Ordinance 1988 (70 of 1988); and

(b) sections 33, 34 and 36 to 44 by section 15(1) of the Travel Agents

(Amendment) Ordinance 1988 (70 of 1988), those provisions shall, in
the case of an application for an ex gratia payment made under section 43 prior to the
specified date, continue to apply to such application to the same extent that they
applied immediately before their repeal.

(2) In this section 'specified date' means a date specified by the Governor by
notice in the Gazette for the purposes of this section

(Incorporated 70 of 1988 s. 18)

SCHEDULE [ss. 2 53]

PART I

APPROVED ORGANIZATIONS

Item Description

1. Travel Industry Council of Hong Kong

Sections 14(d) and 15(1) of the Travel Agents (Amendment) Ordinance 1988 (70 of 1988) not
yet
in force.
23 January 1989-L.N. 357 of 1988.





PART II

ASSOCIATION
MEMBERS

Item Description

1. Hong Kong Association of Travel Agents Limited

2. The Federation of Hong Kong Travellers Limited

3. International Chinese Tourist Association Limited

4. Society of IATA Passenger Agents Limited

5. Hongkong Taiwan Tourist Operators Association Limited

6. Hong Kong Association of China Travel Organisers Limited



(Schedule replaced 70 of 1988 s.
17)

https://oelawhk.lib.hku.hk/items/show/2889

1964

v14

218

25