Hong Kong tourism industry representatives have called for tougher action against forced shopping after two travel agencies and a tour guide lost their licences following enforcement action by the Travel Industry Authority.
The licence revocations have renewed debate over how authorities can prevent tour operators from pressuring visitors into shopping during organised trips. Industry representatives welcomed the enforcement measures but said stronger penalties and closer monitoring may be needed to stop operators from returning to the business under new names.
Sara Leung Fong yuen, a consultant with the Federation of Hong Kong Trade Unions in Tourism, said the action showed that regulators were willing to intervene when tourism businesses breached the rules. However, she warned that removing a licence from a company may not always be enough to prevent the people behind the operation from starting again elsewhere.
Speaking on a radio programme, Leung said some registered licence holders may not be the actual people running the travel agencies. If such individuals are deregistered, she argued, those who were responsible for the operation could potentially establish another company and continue operating through a different structure.
Her comments point to a problem that goes beyond individual licence cancellations. Enforcement becomes more difficult if the person named on a licence is not the person making operational decisions or directing the practices that tourists experience.
Calls For Stronger Penalties
Leung called for existing laws to be enforced more strictly and suggested that serious violations should carry the possibility of imprisonment.
She also proposed financial rewards for whistleblowers who provide information about illegal practices. Her argument was that members of the industry may sometimes have information about misconduct before regulators are able to identify it through routine inspections.
Such a system, she said, could help authorities address manpower limitations. A shortage of inspectors can make it difficult to monitor every travel agency, tour group and guide, particularly when questionable practices take place away from the main premises of a company.
The proposal reflects the wider challenge faced by regulators trying to police an industry that involves multiple parties. A tour may involve a travel agency, a guide, transport providers and retail businesses. Identifying who arranged a particular shopping activity and whether tourists were subjected to improper pressure can require information from several sources.
Leung said stronger penalties would also send a clearer message to operators that forced shopping could have serious consequences.
Low Cost Tours Remain A Concern
Leung also linked the problem to the economics of low cost group tours.
Budget tour packages can attract visitors with prices that may leave limited room for operators to cover the full cost of organising and delivering the trip. According to Leung, this creates a risk that some agencies will attempt to recover expenses through shopping commissions.
Under that model, the initial tour price becomes part of a broader commercial arrangement. Tourists may be brought to selected shops during their itinerary, with the expectation that purchases will generate income for businesses connected to the tour.
The concern arises when shopping changes from an optional part of a trip into an activity that visitors feel they cannot refuse.
Leung said low cost tours therefore remain particularly exposed to forced shopping practices. Operators may use inexpensive packages to attract customers and then rely on pressure surrounding purchases to generate additional revenue.
For tourists, the experience can turn a low priced holiday into a source of financial pressure. Visitors who have paid for a package may find themselves being encouraged, directed or pressured to spend additional money once the tour is under way.
Licence Revocations Show Regulation Is Working
Perry Yiu Pak leung, a lawmaker representing the Election Committee constituency, took a somewhat different view of the recent enforcement action.
Speaking on the same radio programme, Yiu said the revocation of the licences demonstrated that the existing regulatory system was capable of dealing with violations.
He argued that the laws governing the tourism industry are already stringent and that the focus should not simply be on creating additional regulations.
Yiu also pointed to changes in the way tour guides are paid. According to him, improved remuneration for guides has reduced the incentive to depend on shopping commissions as a source of income.
That issue is important because tour guides are often the people accompanying visitors throughout the day. Their relationship with tourists can directly affect whether shopping becomes a normal optional activity or a source of pressure.
If guides receive better compensation for their professional work, there may be less financial reason for them to rely on commissions linked to purchases. Yiu suggested that this has already reduced one incentive behind problematic shopping practices.
Training And Clear Instructions Needed
Despite his assessment that the regulatory framework is working, Yiu called for further improvements in training and enforcement.
He also urged travel agencies to give tour guides clear instructions prohibiting illegal shopping practices.
Those instructions should be communicated both verbally and in writing, according to Yiu. Written guidance can establish what agencies expect from guides, while verbal instructions can ensure that staff understand those requirements before taking responsibility for a group.
For travel agencies, the issue is not limited to the conduct of individual guides. Clear internal procedures can help establish accountability and give staff a firm understanding of what they are permitted to do during a tour.
The call for stronger training also reflects the practical difficulties guides can face when dealing with tourists and businesses during an organised itinerary. Guides are responsible for managing groups, following schedules and communicating information to visitors. They must also understand the boundaries between legitimate tourism arrangements and conduct that could breach industry rules.
Pressure On Authorities To Maintain Enforcement
The latest licence revocations have placed renewed attention on the effectiveness of enforcement within Hong Kong's tourism sector.
Leung's warning about licence holders potentially establishing new companies focuses on what happens after a business loses its licence. Removing an operator from the regulated sector may deal with an immediate violation, but regulators also need to ensure that those responsible cannot simply return through another business structure.
Yiu's comments, meanwhile, suggest that authorities already have substantial powers under the existing system and that better training and enforcement could make those powers more effective.
The two positions are not necessarily contradictory. Strong laws are only useful when regulators can identify violations, establish responsibility and impose penalties that operators cannot easily avoid.
The dispute also places responsibility on tourism companies themselves. Agencies that employ guides have a direct role in preventing improper shopping practices by explaining the rules clearly and monitoring how tours are conducted.
For visitors, the issue is straightforward. A tour advertised at a low price should not become a mechanism for forcing customers to spend more money at selected shops.
The latest enforcement action has removed the licences of two agencies and one guide. Industry representatives now want the authorities and tourism companies to ensure that those penalties translate into lasting changes, with stronger supervision, clearer instructions and meaningful consequences for operators who pressure tourists into shopping.