China's top legislature on Thursday adopted a law on tourism in an effort to protect the rights of tourists and clear the way for the industry's sustainable development.

The Standing Committee of the 12th National People's Congress approved the bill at its bi-monthly session, which ran from Tuesday to Thursday, after three readings.

It is the first law adopted by the 12th NPC Standing Committee, which convened its first meeting in March this year. The law is expected to go into effect from Oct. 1.

The long-awaited tourism move is designed to regulate the tourism market, safeguard tourists' rights and interests, ensure reasonable use of resources, and foster the industry's sustainable and healthy growth, the NPC's Law Committee said when explaining the bill during the session.

ADDRESSING TOURISM WOES

The new law outlines measures to address key problems -- unfair competition, wanton price hikes, and forced goods purchases -- which have plagued the travel industry and aroused strong public discontent in China.

The law includes provisions to counter the rampant practice of "zero- or negative-fare tours" in the country that undermine the legitimate interests of tourists and businesses.

"Zero- or negative-fare tours" usually refer to tour services sold by travel agents at or below cost in order to attract travelers, who are later forced to purchase goods or tip agents during their tour.

Travel agencies may not sell services at "unreasonably low" prices to attract tourists or seek illegitimate profits by arranging for tourists to purchase goods at designated stores or any paid travel sessions other than those listed in the contracts, it says.

The law stipulates that fixed-price tour contracts should clearly list tour itineraries, content and duration of each travel session, and conditions for transportation, hotel and dining services.

Focusing on curbing wanton price increases at some scenic sites, the law introduces a compulsory public hearing procedure before a price rise.

According to the law, tourism sites developed using public resources should "strictly control rises in entrance fees or other additional charges." They will also have to hold public hearings if they plan to raise prices so as to prove it is a necessary and reasonable move.

In addition, the law says tourism sites should issue early warnings to the public if the number of visitors to a site is expected to reach maximum capacity to keep tourists better informed and ensure their safety against the backdrop of the country's tourism craze, which is especially apparent during public holidays.

The law also makes clear the legal consequences of violating the rights and interests of the tourists.

Operations could be suspended for six months for scenic areas that fail to issue early warnings and take necessary measures to ease the flow of visitors or those that receive tourists in excess of the maximum capacity, according to the law.

It also imposes a three-year ban on those whose tour guide certifications have been revoked for luring or forcing tourists to purchase goods or for unnecessarily changing tour itineraries.

Furthermore, the law stipulates that local governments at or above county level should assign or set up special organizations for receiving complaints regarding tourism.

China's domestic travel market is the world's largest. The country ranks third globally in terms of tourists received from overseas.

Statistics from the country's tourism authorities show that domestic tourists totaled nearly 3 billion in 2012, a record high that is almost three times the combined population of the United States and European Union.