Under a pilot scheme unveiled in the latest phase of the Closer Economic Partnership Arrangement (CEPA), wholly-owned or joint-venture Hong Kong travel agencies set up in Guangdong province are allowed to operate Hong Kong and Macao tours for Guangdong residents.

To obtain the preferential treatment, a travel agency must meet the following basic requirements (the details of which will be announced by the China National Tourism Administration):

1. it must be incorporated pursuant to Hong Kong’s Companies Ordinance;
2. it has been in operation for at least 3 years;
3. the annual turnover of a joint-venture travel agency must not be less than US$12 million and that of a wholly-owned travel agency must not be less than US$25 million;
4. it has a registered capital of not less than RMB2.5 million;
5. it operates travel agency business in Hong Kong;
6. it employs 50% or above of its staff in Hong Kong;
7. it has an office or offices in Hong Kong.

Apart from the above, a Hong Kong travel agency must first apply to the Trade and Industry Department for a Certificate of Hong Kong Service Supplier.