Ruan Chengfa, the governor of Yunnan, said during the annual session of the top legislature earlier this month that the province would work to design a system that strengthens supervision to address problems within the tourism industry.

The new measures to regulate the tourism industry are "the strictest ever", according to industry insiders.

Yu said several authorities - including tourism administration, commerce, commodity prices, tax and public security - will work together to prevent travel agencies or tour guides from designating specific shopping venues for tourists or arranging activities with hidden payments.

"In addition, travel agencies luring tourists with prices lower than costs will be suspended from business for a set period, with those who continue to sell overly cheap tours after suspension losing their business licenses," he added.

Ren Jianzheng, chairman of the Yunnan Chamber of Tourism, welcomed the measures.

"A chaotic tourism industry harms all involved - travel agencies, tour guides and tourists," Ren said, adding that a transparent, orderly industry, which is expected to be brought about after the implementation of the new measures, will benefit all.