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The Civil Aviation Administration of China announced that no travel agency may be established or operated without obtaining a license from the competent department of the Civil Aviation Administration of China in accordance with Article 2 of the Civil Aviation Administration Law. The Civil Aviation Administration of China confirmed in a post on its official social media account that any natural or legal person is prohibited from engaging in the issuance or sale of travel tickets without obtaining the necessary license.
Article 2 of the Travel Agency Management Law stipulates that no one may open or operate a travel agency business without the permission of the competent authority.
Except for the services necessary for Hajj and Umrah activities, only travel agencies that have obtained permission in accordance with the provisions of the preceding paragraph may operate the businesses and services specified in the preceding article.
However, airlines may undertake these works and services for passengers on their routes, subject to obtaining the permission provided for in the first paragraph of this article, provided that a separate department is designated in their offices to carry out these works and services, and on an account separate from all other works. These offices are prohibited from carrying out any works or activities outside the scope of the permission. The General Directorate of Civil Aviation recently recommended that caution be exercised when purchasing travel tickets to various destinations, verifying the booking conditions. This is to ensure the rights of the public, noting the need to ensure that the offices with which they deal have a valid license to practice issued by the Administration.
Grant of License
The DGCA is keen to facilitate investors by issuing the necessary licenses to engage in commercial activities related to air transport to avoid penalties for violating laws and directives issued by the DGCA. Those who wish to engage in activities related to tourism, travel and flight booking can apply to the DGCA for the necessary approvals in accordance with applicable laws and regulations.
An important step
Tourism expert Ayman Al-Qudwa believes that the recent notification by the General Authority of Civil Aviation on the prohibition of issuing or selling travel tickets without a license is a step in the right direction, as most travel agencies and tourism companies have suffered a severe blow this season due to the intruders, which has led to a drop in sales and a decrease in growth rate compared to previous years, as they have not borne any burden in terms of employees, obligations, rents, license renewals, ETCs.
Online store
Kudwa told Al Arabiya that the e-shops sell travel tickets, tours, travel packages and everything related to travel and tourism through websites on the Internet and special accounts on social media platforms, through the so-called “They do not have any licenses or permits, their work relies on “WhatsApp groups” and uses personal credit cards to buy tickets from various websites and then sell them to the public. Travel consultants provide personal services to individuals in order to earn income from them without any burden or obligation on them.
Fierce competition
Al-Qudwa explained that competition among companies was very fierce during the quarter, with prices falling by about 15% to 20% due to offers and price burning, noting that in addition to Qatar Airways, there are about 50 airlines operating in the local market, the supply is very large compared to the demand in the local market, and sales this quarter are the weakest since the post-COVID-19 period.
He said that in the wake of the (Covid-19) pandemic crisis, travel companies around the world are suffering as most travelers prefer to book through “online” websites, resulting in a significant drop in their business. This has opened the door for intermediaries to compete with ticket booking offices, and electronic booking services are growing significantly in the Gulf countries, with an annual growth of 25% to 30%.
IATA Announcement
Tourism expert Aiman Kudwa pointed out that the International Air Transport Association (IATA) recently issued a notice for the Middle East and Africa region, requiring travel companies to shorten the payment period for tickets issued through it from two weeks to one week from the beginning of January 2025. The policy will increase pressure on the local tourism market, thereby reducing its contribution to the national economy and will also reduce sales growth and opportunities to cover costs. Since individuals and institutions usually require facilities and longer periods to pay and pay due bills related to flight bookings, this decision will have a negative impact on travel companies and local travel agencies.
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