China preparing to regulate unprecedented online travel platform

Saturday, September 29, 2018

China is going to control unprecedented online travel agencies and platforms which are based in China, after a deadly boating accident involving Chinese tourists in Thailand fueled claims of lax oversight, according to a person familiar with the matter.

The regulation by Ministry of Culture and Tourism would mandate that online travel providers improve rescue and emergency plans, better vet and manage their on-ground service providers, purchase liability insurance, and protect clients’ personal information, said the person, who asked not to be identified discussing internal policy deliberations.

It would represent Beijing’s first concerted attempt to monitor online tourism outfits, which have proliferated as Chinese tourists fan out across the globe.

While storefront travel agencies are forced to purchase liability insurance under current law, those regulations don’t extend to online platforms. Some web providers don’t hold a government-issued operating license or liability insurance, the person said.

There are millions of Chinese tourists are expected to hit the road in the coming days as the country begins an annual “Golden Week” break to mark its National Day holiday on October 1. The Tourism Ministry did not immediately reply to a faxed request for comment on Friday.

Before the regulation can be implemented, Chinese law stipulates that it must solicit opinions from the public. The person said this would happen soon, without specifying a date.

China will be one of the world’s fastest growing online-travel markets over the next decade, according to Bloomberg Intelligence. The major players in its web tourism industry include Ctrip.com International Ltd., Tuniu Corp., and Alibaba Group Holding Ltd.’s travel service, Fliggy.

The country’s outbound tourism expenditure swelled to $261 billion in 2016 — about one-fifth of the global market — 11 times the amount spent a decade earlier.

@Bloomsberg

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