ADS Application Information Package Application information to operate as an Inbound Tour Operator in the Approved Destination Status (ADS) scheme Version 1.0 PrInTeD July 2010 © Commonwealth of Australia 2010 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, national Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca ISBn 978-1-921516-77-1 (paperback) ISBn 978-1-921516-78-1 (PDF) Contents Section A: ADS Application Guide 4 Definitions for the ADS scheme 4 What is ADS? 4 What does ADS mean for Australia? 4 How can ADS benefit me as an Australian Inbound Tour Operator? 4 How is ADS administered in Australia? 5 Who may apply? 5 How do I apply? 5 How will my application be assessed? 6 How will I know if my application has been successful? 7 unsuccessful Applications – existing applicants 7 Further Applications 7 How is my ongoing compliance assessed? 7 effect of non-Compliance with the Code 8 What application and participation fees apply to ADS? 8 Where can I get more information? 8 Section B: Responsibilities 9 ADS Code of Business Standards and Ethics 9 Attachment A: ADS Fit and Proper Person 22 Attachment B: ADS Sanction Structure 25 Attachment C: ADS Service Contract — Model Clauses 26 Attachment D: Indicative list of Industry Associations 29 Attachment e: ADS Itinerary Proforma 30 Attachment F: ADS Quotation Proforma 32 Attachment G: Tour Completion report 33 Attachment H: ADS Absconder report 34 Attachment I: Indicative list of Competitive retail Areas 35 Section C: Application 38 Instructions 38 • 3 Section A ADS Application Guide Definitions for the ADS scheme The ADS scheme has facilitated significant growth in group leisure travel from China, with over The definitions for the purposes of this Application 550,000 Tour Group Members comprising around Pack will be the same as outlined in the ADS Code 40,000 Tour Groups travelling to Australia since of Business Standards and Ethics (the Code). 1999. In 2009, nearly 80,000 ADS tourists visited Australia. China is Australia’s fourth largest inbound What is ADS? market. The Tourism Forecasting Committee has recognised ADS travel as an important element Approved Destination Status (ADS) is a bilateral in driving growth in inbound tourism from China. tourism arrangement between the Chinese It estimates that Chinese inbound travel will Government and a foreign destination whereby record average annual growth of 7.9 per Chinese tourists are permitted to undertake leisure cent over the 2008-2018 period, resulting in travel in groups to that destination. 761,000 Chinese visitors by 2018. The ADS arrangement was introduced by the Chinese Government in1983. How can ADS benefit me as an ADS arrangements are now in operation in Australian Inbound Tour Operator over 100 countries around the world, including (ITO)? Australia. Although the Chinese government has significantly liberalised its outbound travel policies, it still What does ADS mean for Australia? maintains a controlled approach through its ADS arrangements. The ADS scheme provides a Australia and new Zealand were the first western channel through which group leisure tourists can countries to be granted ADS. Australia’s ADS travel to approved destinations. scheme was established through a formal exchange of letters between the Australian and Australian Inbound Tour Operators (ITOs) may Chinese governments in 1999. ADS permits the only participate in the ADS scheme and organise Australian Government, through Tourism Australia ADS travel to Australia if they are approved by (TA), to promote Australia as a travel destination the Australia Minister for Tourism (the Minister) in China. ADS celebrated its 10th anniversary Once approved for the ADS scheme, ITOs may in Australia in April 2009. Tourism Australia (TA) participate in ADS and apply to attend other opened an office in Shanghai in May 1999. related events such as TA’s annual Greater China Travel Mission to China, which provides business Initially, only residents of Beijing, Shanghai and opportunities through direct interaction with the Guangdong were allowed to travel to Australia Chinese travel industry. ITOs also gain access under the ADS Scheme. In July 2004, six new to research and market information provided at regions were added — Chongqing, Hebei, Jiangsu, information sessions held specifically for ITOs by Shandong, Tianjin and Zhejiang. In August 2006, the Commonwealth and industry groups like the the ADS scheme was expanded to all of China. Australian Tourism export Council (ATeC). 4 · ADS APPlICATIOn InFOrMATIOn PACKAGe ITOs may only accept ADS business from ADS • whether an existing ITO has breached the Outbound Tour Operators (OTOs) who have been Code or ceases to be a Fit and Proper Person, assessed and approved by the China national and if so, whether the Minister should suspend Tourism Administration (CnTA) on behalf of the or revoke the ITOs Approval. Chinese Government and the Australian Minister In making decisions in relation to Applicants for Immigration and Citizenship for the purpose of or existing ITOs under the ADS scheme, the the ADS scheme. Chinese citizens may only obtain Minister may have regard to the recommendations a visa for the purpose of ADS travel to Australia provided by reT and may draw on the advice through an approved ADS OTO. Approved agents of DIAC, reT, TA and the ADS Advisory Panel are listed at www.ret.gov.au/tourism_ads (a body comprised of industry and government ADS OTOs must also be trained by TA as ‘Aussie representatives, tasked with providing interface Specialists’ and must have received training from between the Commonwealth and the tourism the Department of Immigration and Citizenship industry and providing advice to reT). (DIAC) before being allowed to arrange ADS travel to Australia. Only approved OTOs are eligible to Who may apply? conduct business with approved ITOs. Persons or organisations who are not approved OTOs are not To apply to participate in the ADS scheme, an ITO eligible to conduct business in the ADS scheme, must hold an Australian Business number or ACn, this includes commission linked shopping outlets. a current travel agent’s licence under the relevant State/Territory legislation, and must also be a While the ADS scheme has many benefits for current member of a relevant Industry Association ITOs, Approval also carries special responsibilities (a list of Industry Associations can be found at which are set out in the ADS Code of Business Attachment D). Standards and ethics (contained in Section B - responsibilities in this Application Information Package). The Commonwealth considers these How do I apply? responsibilities to be necessary to uphold the ITOs wishing to participate in the ADS scheme integrity of both the immigration arrangements and must apply for Approval from the Minister in the China inbound tourism market. accordance with the application process. Applications are open on an ongoing basis and How is ADS administered in application forms can be found on the reT Australia? website at www.ret.gov.au/tourism_ads The Minister is responsible for providing Approval existing ITOs will be required to submit a of or rejecting Applicants. The Minister will not condensed application each year and a full Approve an Applicant unless satisfied that the application on a two year cycle. ITOs will be Applicant (and relevant Associates of the Applicant advised of their application cycle by reT. identified by the Department of resources, energy To apply for Approval, an ITO must: and Tourism (reT) is a ‘Fit and Proper Person’ to participate in the ADS scheme. Fit and Proper • submit to reT: Person criteria is outlined in Attachment A to the - a properly completed ADS Application Code. Form (containing all relevant attachments reT is responsible for the administration of the such as national police checks, personal and 1 ADS scheme including providing advice to the business references) ; Minister on approvals and suspensions, as well - a properly completed ADS Declaration and as tourism quality issues. DIAC is responsible for Consent Forms signed by the applicant and immigration aspects of the ADS scheme. TA is its principles respectively2; responsible for the industry fitness components of - a properly completed ADS Deed, signed by the ADS scheme. the Applicant3 reT will make recommendations to the Minister 1 Contained in the online forms. This form provides the details of the as to: applicatn and information necssary for the Minister to assess whether the applicant is ‘fit and proper’ to be approved for participation in the ADS scheme. • whether an Applicant/ITO is a Fit and Proper 2 Contained in online form. This form provides the consent of principles of Person, and whether the Applicant/ITO should the applicant for personal information to be disclosed for the purpose of be Approved to participate in the ADS scheme; assessing the ‘fit and proper’ status of the applicant. 3 The Deed can be found on the reT website. The Deed allows an ADS and ITO to participate in the ADS scheme by entering into an agreement with reT. ADS APPlICATIOn InFOrMATIOn PACKAGe · 5 • provide evidence that the ITO holds a current - TA for an assessment of the Applicant’s travel agent’s licence under the relevant industry fitness, taking into account the State/Territory legislation (including in some matters outlined in Item 3 of Attachment A to states associated membership of the Travel the Code; and Compensation Fund); - DIAC for assessment of the Applicant’s • sign a declaration that the ITO agrees to immigration compliance, taking into account comply with the ADS Code of Business the matters outlined in Item 4 of Attachment Standards and Ethics (the Code); and A to the Code.