With the implementation of the Travel Agency Rule on May 1, 2009, some major changes will apply to travel agencies in Yantai, Shandong.

 

    Under the new rule, the travel service provider should to pay a deposit of CNY200,000 instead of CNY100,000, for provide inbound travel service. 

   

    It will add more funding pressure for smaller travel agencies, and a manager from a small travel service provider said that even though domestic travel service providers are allowed to provide inbound travel services, it is still difficult for them to attract clients due to their size.

 

 

    Unlike small travel agencies, large travel service providers in Yantai are optimistic of the prospects brought by the new rule. A manager from a large travel agency on Yantai South Street told media that as a travel service provider that is allowed to run international travel services, the deposit they need to pay for the service decreased from CNY1.6 million to CNY1.2 million. In addition, under the new rule they won't have to give part of the interest of their deposit to the supervision department as they do now. All this is good for their capital turnover.