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Bond allows Shanghai locals a license to explore

(CRI)
Updated: 2008-08-21 11:05

Shanghai residents who plan to travel abroad for the National Day holiday in October will no longer need to pay a deposit, as a bonding company plans to post a guarantee for them, the Xinmin Evening News reported Wednesday.

Those who apply for the service from the Shanghai Real Estate Bonding company need only pay the company 300 yuan in commission and fill out an application.

Local travelers normally pay travel agencies a hefty deposit for trips to developed countries such as the United States, Japan or Europe.

Some travelers have been asked to pay as much as 200,000 yuan ($29,173) if travel agencies felt the client was suspicious or didn't offer enough paperwork, though most deposits ranged between 20,000 yuan and 30,000 yuan.

Domestic travel agencies required the hefty deposits because they face the risk of having their overseas tourism license canceled if tourists quit the group and remain beyond their permitted stay.

However, a group tour to the United States costs about 20,000 yuan each on top of a 50,000 yuan deposit. Thus, a family of three could be charged 200,000 yuan in cash for a US vacation.

Major Shanghai travel agencies and the bonding company have worked together to launch the service, including Shanghai International Travel Agency, Shanghai Jinjiang Travel Agency, Shanghai Airlines' Travel Agency and Shanghai Ba-Shi Travel Agency.