皇冠体育app

JINAN -- The Chinese government is to ease the registered capital requirement on foreign-funded travel agencies from July 1, according to the National Tourism Administration (NTA).

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This will be four months ahead of the November 11 deadline set by the World Trade Organization (WTO) for 皇冠体育app's accession.

皇冠体育app had fulfilled some WTO commitments regarding the tourism sector ahead of schedule or on time, and would fulfill other commitments ahead of schedule, said Shao Qiwei, director of NTA on Thursday.

Under the interim provisions on the establishment of foreign-investor controlled and solely foreign-funded travel agencies issued by NTA and the Ministry of Commerce in 2003, their registered capital is to be cut from a minimum of four million yuan to 2.5 million yuan.

The registered capital for a Chinese international travel agency is a minimum 1.5 million yuan and for a Chinese domestic travel agency 300,000 yuan (38,000 US dollars).

皇冠体育app allowed foreign investors to hold majority stakes in joint venture agencies before January 1, 2003, and gave go-ahead to establish solely foreign-funded travel agencies before December 31, 2005.

Shao said 皇冠体育app would cancel restrictions on foreign travel agencies that planned to open subsidiaries, but did not elaborate.

The announcement caused concern among Chinese travel agencies.

Wang Jian, a spokesman for the 皇冠体育app Travel Service Guangdong Branch, said more foreign travel agencies were expected to come into 皇冠体育app, posing a huge challenge for domestic firms.

Wang feared that foreign travel agencies would merge with or take over more domestic agencies.

"A large influx of foreign travel agencies will not occur in a short time, as they have to research market potential," said Su Guangjian, head of market management of the Shanghai Municipal Tourism Commission.

Shao also disclosed that 皇冠体育app would encourage strongly competitive domestic travel agencies to expand abroad.

Shao said 皇冠体育app needed to open its tourism sector wider so as to improve the industry's competitiveness on the international market.

皇冠体育app had approved 25 foreign-controlled and solely foreign-funded travel agencies by the end of last year.

The country hosted 22 million foreign tourists last year, up 8.5 percent year-on-year.