The Board of Directors held an emergency meeting in mid-May to scrutinise a new refund protection scheme, which had been studied by the Committee on Shopping-related Practices for a long time. The new scheme, which is called the Refund Protection Scheme (Registered Shops) for Inbound Tour Group Shoppers and which will take effect from 15 June 2007, will replace the current 14-Day, 100% Refund Guarantee Scheme.

The similarities between the new and current schemes are that both require member agents to register the information of shops with the TIC before taking visitors to any shops. And shops wishing to be registered must make some pledges to the TIC. If they violate those pledges, they will be imposed a certain number of demerits. Once the total number of demerits reaches 30, they will be deregistered, and member agents will then be prohibited from arranging for group visitors to patronise them.

So what are their differences? There are, of course, many specific differences between the two schemes. But on the whole, those differences may be divided into four categories.

First, better protection. The new scheme will require registered shops to pledge to provide six-month, full refund protection for mainland group visitors.

Second, greater transparency. Information about registered shops will be posted on the TIC website, which includes their addresses and telephone numbers, the demerits imposed on them, the reasons for imposing demerits and particulars of the relevant receiving agents and tour operators.

Third, higher service standards. According to the new scheme, if the TIC receives 10 refund complaints against a registered shop within three months, it will be given 10 demerits apart from those demerits which may be imposed in each refund complaint. Also, if a registered shop has done anything which may harm Hong Kong tourism (such as selling fakes), it will be deregistered.

Fourth, prevention of responsibility shirking. Under the new scheme, even if a registered shop has changed its name or has obtained a new Business Registration Certificate, it will still be taken as the same shop, with all its accumulated demerits retained, so long as its business location is the same.

Needless to say, the goal of our launching the new scheme is to more effectively safeguard the shopping rights of inbound group visitors. But to achieve that goal, the efforts of the TIC alone are far from sufficient. We therefore hope that the Customs and Excise Department, the Tourism Commission, the Consumer Council, the Hong Kong Tourism Board and the China National Tourism Administration will all work together to make inbound visitors be able to really appreciate why Hong Kong has been hailed as the shoppers' paradise.

Ronnie Ho
28 May 2007