The China National Tourism Administration (CNTA) and the Ministry of Commerce of China have jointly announced rule changes regarding setting up a foreign travel agency in the Chinese mainland.

The two agencies have decided to lower the threshold for Hong Kong and Macao travel service providers who want to set up companies in the mainland.

The new rule requires travel agencies from Hong Kong and Macao who establish an independent travel service in the mainland to make no less than US$25 million travel revenue each year and those who set up joint ventures with mainland counterparts no less than US$12 million.

The amount previously was RMB500 million and US$40 million, respectively.

The rules do not allow Hong Kong and Macao travel agencies to provide outbound travel services from the mainland, so the local travel agencies still enjoy many more advantages.