1. If a customer books hotel rooms and the admission ticket of theme parks through a travel agent, does the agent need to pay the levy by franking the receipt?

    Yes, it needs to pay the levy. Any outbound travel service consisting of two or all of the following three components - transportation, accommodation and activities - is an outbound package tour and the agent must frank the receipt.

  2. If a customer uses a HK$100 coupon to join a package tour worth HK$1,000, which amount, HK$1,000 or HK$900, should be taken as the basis for calculating the levy?

    The actual amount received by the travel agent should be taken as the basis for calculating the levy, which in this case is HK$900.

  3. Does the amount concerning the peak season surcharge need to be included in the amount for calculating the levy?

    Since the peak season surcharge is a part of the outbound fare, it has to be included in the amount for calculating the levy.

  4. Suppose a retail travel agent sells the package tours of a wholesale travel agent. If a traveller goes to the retail agent's office to join a tour of the wholesaler's, can the retail agent collect the outbound fare and let the wholesale agent issue the franked receipt?

    No. The travel agent that sells tours directly to customers and collects the money from them must issue franked receipts to them when it receives the outbound fare.

  5. If a customer joins a package tour, which is to depart from Hong Kong, at the Macao branch office of a Hong Kong travel agent, should the receipt be franked?

    Since the entire levy system is applicable in Hong Kong only, the receipts for package tours joined by travellers outside Hong Kong do not need to be franked. Apart from that, the franking machines are the property of the Travel Industry Compensation Fund, and therefore travel agents are not allowed to take the machines to places outside their registered address.

  6. If a wholesale travel agent closes down, what can be done by the retail travel agent in order to ensure that the outbound travellers are protected by the Travel Industry Compensation Fund (TICF)?

    If a wholesale travel agent closes down, the retail travel agent needs to submit the following to the TICF Management Board to prove its relationship with the wholesaler:

    • franked receipts which show the tour name and the tour code and which expressly state that the retail agent is acting in the capacity of agent for its principal, i.e. the wholesaler;
    • tour brochures which show the tour name and the tour code;
    • proof of payment by the retailer to the wholesaler on behalf of the outbound travellers; and
    • other supporting documents such as an exchange order.

  7. Suppose a group of eight people wish to join a package tour together, is it necessary to list all their names on the receipt?

    To ensure that each and every package tour participant is covered by the Travel Industry Compensation Fund and the Package Tour Accident Contingency Fund Scheme, it is necessary that the full name of all package tour participants is listed on the receipts and invoices.