According to the Supplement V of the Closer Economic Partnership Arrangement signed in Hong Kong in July 29, 2008, Hong Kong travel agencies are allowed to set up their wholly owned travel agencies in Chinese mainland.

This supplementary agreement will be formally implemented on January 1, 2009. CEPA Supplement V covers hotels (including apartments), restaurants, travel agencies, travel service providers, and guides. Guangdong is authorized to examine and approve Hong Kong service suppliers setting up wholly owned, joint venture or cooperation travel agencies in Guangdong. In addition, Hong Kong permanent residents with Chinese citizenship will also be allowed to sit mainland tourist guide qualification exams.

It is reported that this agreement will not only implement open measures around mainland China to a relatively high degree, but will also implement a package of pilot measures in Guangdong to strengthen the cooperation relationship between Hong Kong and Guangdong.

(China Hospitality News August 1, 2008)