Travel agencies slam delay in bank payments
Updated: 2008-10-30 07:35
By Louise Ho(HK Edition)
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Representatives of the Travel Industry Council of Hong Kong yesterday urged the Hong Kong Monetary Authority (HKMA) to request banks to settle their credit card transactions sooner.
After handing a letter of petition to the HKMA, chairman of the council Ronnie Ho said it usually takes two to three days for banks to settle their credit card transactions. But recently they were informed that it may take up to 60 days for payments to go through.
"The delay in payment has resulted in a shortage of funds for travel agencies," he said.
He said the travel industry hoped banks could resume the previous two-day practice so that travel agencies could have ample operating capital.
Otherwise, he said, travel agencies will in turn refuse to accept credit card payments from customers.
The representatives also met up with Tourism Commissioner Au King-chi yesterday to request the government to waive license fees on travel agencies for one year to ease their financial burden.
They said the government waived the license fees during the SARS outbreak in 2003 and now the government should do the same.
Meanwhile, HKMA's deputy chief executive Y K Choi said banks "should remain supportive and adopt a sympathetic attitude" toward small and medium enterprises (SMEs) as the operating environment for SMEs is particularly difficult amid the global financial crisis.
Choi also wrote on the authority's website that banks should "be as accommodative and flexible as possible to the funding needs of SMEs".
Banks should not extend the period for settling credit card transactions to merchants hastily, he remarked.
He added the HKMA believes it would be in the best long-term interests of the economy if banks could be supportive to SMEs.
The Commerce and Economic Development Bureau has also asked banks to be more flexible granting loans to travel agents.
A spokesman for the Tourism Commission hoped banks could weather the economic hardship together with the travel industry and not to tighten loan standards indiscriminately.
Banks should try to minimize the impact of the financial crisis on both the travel industry and customers, the spokesman said.
For the trade's request to waive license fees on travel agencies, the spokesman said the commission will consider the request carefully and try to come up with measures to help the trade overcome their difficulties.
(HK Edition 10/30/2008 page1)