The number of tourists signing up with travel agencies for domestic tours during the peak National Day Holidays season have plummeted, due to price hikes resulting from tightened rules on tourist services and the ongoing crackdown on government-funded travel.

The new tourism law, which will take effect on October 1, the first day of the so-called Golden Week, has caused the price hike, as travel agencies can no longer offer extremely cheap prices first and make money back later through forced shopping tours or other charges.

Li Gang, vice president of a travel agency in Hunan Province, told the Global Times Saturday that they have received 40-50 percent less tourists for the National Day Holidays than last year.

The six-day travel package prices in Hunan including Changsha, Shaoshan, Zhangjiajie and Fenghuang, have increased by 50 percent, Li said.

The biggest impact came from the drop in the number of tours sponsored by government agencies. There are no such tour groups for this National Day period, though such groups used to make up the majority, according to Li.

Earlier this year, the central government issued strict regulations banning government agencies from using public funds to organize leisure tours to scenic spots or foreign countries. 

Rising prices have also dealt a blow to the travel industry.  Many places across the country are seeing fewer tourists going with agencies, according to media reports.

"I did not expect the sharp reduction of the tourists, as many cannot accept the surging prices and are taking a wait-and-see attitude," said Wang Lihua, general manager of Jinhui Travel Agency in Gansu Province, local media reported Thursday.

This year has seen a 50-percent decrease for the holiday week compared to last year, Wang added. 

More tourists have turned to outbound travel for the week-long holidays, given a tour to the Southeast Asian countries costs almost the same as a tour to some cities like Zhangjiajie for several days, said Li.