Having not passed their annual inspections for 2006, six travel agencies in Haikou, Hainan Province have had their business licenses revoked and another eight travel agencies has been suspended.

According to Haikou Tourism Bureau, 101 travel agencies participated in the annual inspection, 87 of them have passed and 14 have failed to pass. The main problems of these travel agencies lie in insufficient management and low price competition, which as a result has led to a decline of their revenue.

Of the six travel agencies whose business licenses have been revoked, four had not joined in the annual inspection, one had not carried out any business for a year nor joined in the inspection, and one had been involved in poor management activities.

The eight travel agencies which have been suspended mainly had such problems as not claiming insurance for tourists, not providing clear schedules for tourists' trips and not carrying out correct auditing. They have been asked to rectify their business within three months, or their business licenses will be cancelled if they fail to do so by the end of that period.