Summary of Key Points
Recently, cultural and tourism departments across the country have taken decisive action, requiring travel agencies to employ at least three full-time guides who have signed formal labor contracts and contribute to social security. This regulation was introduced in 2013, but most small and medium-sized travel agencies in the country have not complied with it (for example, 408 travel agencies in Haikou and 508 in Guiyang are short of full-time guides). The guide community hopes that this policy will address the issue of social security, while agency owners argue that they cannot afford to maintain such employees. Behind this is a "flexible employment model" that has been in place for over 20 years, where guides work independently, similar to food delivery riders. During the current downturn in the tourism industry, the advantages of flexibility have disappeared, and the contradictions associated with lack of security have become acute.
I. The Policy Is Not a Formality: What Exactly Is Preventing Travel Agencies from Meeting the Requirement of Three Guides?
The requirements for this rectification are clear: travel agencies must employ at least three full-time guides, who must account for more than 20% of the total workforce (both conditions must be met). By "full-time," it is not enough to simply have someone with a guide license; they must sign a fixed contract with the agency, receive a salary, and contribute to social security. Part-time guides who are affiliated with guide associations or work on occasional assignments do not count.
Why is this regulation being enforced strictly now? In the past, it was more of a soft constraint, and many agencies found ways to circumvent it. However, with the threat of license revocation for non-compliance, it is clear that the industry aims to establish a new standard.
II. The Current Situation: Why Can't Most Travel Agencies Meet the Requirement of Three Guides?
The data speaks for itself: 408 travel agencies in Haikou and 508 in Guiyang are lacking full-time guides, and similar situations exist in many other tourist cities across the country. This is not an isolated issue but a common problem for small and medium-sized travel agencies.
The main reason is the high cost. In 2024, the average annual profit of travel agencies nationwide was only 58,500 yuan (less than 5,000 yuan per month), and the cost of employing three full-time guides (salaries and social security) could easily eat into these profits. Many small and medium-sized agencies rely on low-cost tours and other strategies to survive and simply cannot afford the additional expenses.
III. The Guides' Anxiety About Their Future: How Difficult Is Life Without Social Security?
Guides overwhelmingly support this regulation because they lack basic protections:
- Unstable Income: They are extremely busy during peak seasons, working multiple tours in a month, but may have no work at all during off-seasons, leading to inconsistent income.
- Lack of Support in Old Age: Without social security, guides face financial difficulties when they retire or become unable to work.
- The Downturn in the Industry Exacerbates the Problem: With declining tourism business, guides have fewer assignments and a greater need for social security.
For them, this regulation is not just about compliance but about transforming their employment relationship from temporary to permanent, thereby gaining the basic protections they deserve.
IV. The Travel Agencies' Financial Struggles: Why Do They Claim That Employing Guides Would Lead to Bankruptcy?
Travel agency owners have a different view: "We can't afford it!" "Ninety percent of agencies rely on guide associations to provide guides; who would bother with full-time employees?"
The underlying issue is the thin profit margins. With an average monthly profit of less than 5,000 yuan in 2024, the cost of employing three full-time guides (including social security and salaries) far exceeds this amount. They also argue that guides are accustomed to independence and prefer to work independently, choosing the best tours and earning higher commissions rather than being bound by fixed contracts.
V. The Historical Origins of the Flexible Employment Model
This model, where guides work freely and agencies do not provide full employment benefits, did not emerge naturally but resulted from industry restructuring 20 years ago:
- Before the Restructuring: Guides were formal employees with fixed salaries, but they had to give a portion of their earnings in the form of commissions and tips, resulting in low incomes. Many travel agencies were state-owned and inefficient.
- After the Restructuring (2002-2005): Travel agencies became private, and guides started working independently, keeping all their earnings. This reduced the labor costs for agencies, which found this arrangement to be beneficial.
However, with the industry entering a period of decline and increased competition, the advantages of flexibility have faded, and the issues associated with lack of security have become more prominent. The conflict between guides seeking stability and agencies striving to survive has intensified.
In Conclusion
This rectification reflects the clash between the past flexibility of the tourism industry and the current demands for better employee protections. How can we find a new balance? It may require cooperation among policymakers, businesses, and guides—perhaps by exploring more flexible social security solutions or promoting industry upgrades to reduce low-price competition. These are the key to resolving this issue.