Shao Qiwei, the director general of China National Tourism Administration, says that from July 1, 2007, the Chinese Government would cancel limits for foreign investment travel agencies to open branches in China.

Shao says registered capital limits for foreign travel agencies will have the same thresholds as those of domestic travel agencies. He also says that from February 1, the government will cancel limits for setting branches for domestic travel agencies, and will encourage them to develop overseas.

According to this strategy, domestic travel firms are encouraged to invest in the main outbound destinations chosen by Chinese tourists. So while allowing foreign companies into China, the new policy also propels domestic agencies into a new round of competition.