Committee calls for clarity, cracks down on ‘zero-fare’ tours

The Second Standing Committee of the Legislative Assembly has completed the first round of a detailed review of the law that regulates travel agencies and tour guides.

To crack down on and regulate “zero-fare” tour groups, the bill proposes to prohibit local tour operators from charging lower-than-cost prices for the services they provide.

Zero-fare or low-cost tours often rely on tourists to make purchases to generate commissions, but this can lead to forced purchases and, occasionally, hostile interactions.

Committee chairman Chan Chak Mo said the committee hopes the government will explain how to determine the cost price, as well as how much below that price constitutes a violation of the law.

Previously, the director of the Macao Government Tourism Office, Maria Helena de Senna Fernandes, said some inbound tours are priced too low, noting there are trips for as little as MOP50. Obviously, this price is not tenable.

As the current legislation does not regulate this practice, Fernandes had hoped the new law would clarify existing ambiguities, as well as prevent future ones from arising.

The sector has been tarred with incidents of unauthorized tour guides, where inbound tour groups visit Macau without being accompanied by local guides, since the border’s reopening in January 2023.

Therefore, the committee is using the new legislation to require that tours to Macau arranged by travel agencies from outside Macau are managed by a local agency.

Meanwhile, after the recent meeting, Chan said the bill also introduces provisions on the relationship between travel agencies and tour guides, customers, group members and third parties. These include prohibiting travel agencies from collecting benefits from tour guides and collecting additional payments from customers or group members, as well as prohibiting customers from assigning their contract to a third party.

The bill proposes that customers may terminate the contract at any time, and travel agencies must return the money paid by the customer, but may deduct the reasonable burden incurred. Such reasonable deductions include the costs associated with the contract’s commencement and its termination, especially if, circumstantially, the reservation cannot be canceled. Staff Reporter