Government officials in Shanghai and state-run employees holding passports for public affairs are now permitted to arrange overseas business trips with travel agencies.

The change took effect on Monday according to new Shanghai Tourism Regulations. Previously these business delegations had to organize trips directly with airlines and hotels.

"It can reduce trip costs and guarantee professional travel service," said Yin Minfa, director of the policy and law department of the Shanghai Tourism Administrative Commission.

But he added that the travel service for these clients is limited to air tickets, hotels, restaurants and conferences.

Receipts will only be issued for these services to individuals traveling with public affairs passports issued by the Shanghai Foreign Affairs Office, therefore, avoiding the use of public funds for private trips.

'This practice is popular all over the world and we decided to make it work in Shanghai," Yin said. "The receipts rule is thought to be effective on preventing corruption."

A complete set of regulations regarding new travel procedures for those in public office or employed by state-run companies was still to be completed. It will clarify the qualifications travel agencies need to serve these clients.

Travel agencies welcomed the news, believing it opens a new market.

"It is a charming market to us," said Yu Weihua, vice president of the Shanghai CTS (Group) Co Ltd. "Once one travel agency wins over customers with high quality service, those government departments or state-run companies, most of the time, will stick to that agency. That means repeat business."

Yu's company serves 30 private and joint venture companies, and organizes all their respective business trips.

The cost for a business trip can be reduced by one third through a travel agency, Yu said.

(Shanghai Daily March 3, 2004)