A Hong Kong travel agency has allegedly broken the law by announcing its plan to fold only a day before its closure, affecting 1,500 customers and involving about HK$1.7 million (US$218,400), according to a watchdog.
The Travel Industry Authority on Wednesday vowed to investigate M&F Lucky Holiday after the company announced on Monday its intention to cease operations the following day.
“It constitutes a breach of the ordinance,” the watchdog said, referring to the Travel Industry Ordinance, which requires licensed travel agencies to notify the authority at least 14 days before closure.
The watchdog immediately revoked the agency’s licence, saying it could take legal action against the company, depending on the findings of its investigation.
It added that it would cooperate with relevant law enforcement agencies regarding any alleged fraud or other suspected illegal activities.
“Preliminary investigations indicate that around 1,500 customers are affected,” it said, revealing that the company owed about HK$1.7 million in fees, collected for outbound tours that had not commenced.
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