The Chinese government has approved the first wholly owned foreign-invested travel agency in China, 2.5 years before it had to, but imposed strict limits on its business, the winning applicant said yesterday.
A Jalpak official said it had received approval from the China National Travel Bureau (CNTA) to set up the Japan Airlines International Travel Agency (China), with registered capital of five million yuan (HK$4.68 million).
Jalpak, the sixth-largest travel agent in Japan, is a subsidiary of Japan Airlines. The bureau chose Jalpak from several foreign travel agencies that had applied for the right to set up such a venture.
As a commitment on joining the World Trade Organisation, Beijing agreed to let foreign travel companies set up wholly owned companies in China before December 31, 2005.
But Jalpak is allowed to handle only Japanese citizens coming to China for holidays. It is not allowed to handle citizens of other countries nor Chinese going abroad or to Hong Kong or Macau.
Asked if this restriction was reasonable, the Jalpak official declined comment.