22 MAR 2016:  The TICO Board of Directors is proposing to increase the Compensation Fund contribution rates effective July 1, 2016. The proposal reflects an increase from $0.15 to $0.25 per thousand dollars of Ontario travel sales. A Consultation Paper has been sent to all registrants and is posted on TICO’s website.

Without a rate increase, TICO is projecting an operating deficit and the potential for the Compensation Fund to fall below the targeted balance of $20 million. TICO also believes that a number of strategic initiatives in support of its Mission/Vision will be delayed or otherwise adversely impacted.

TICO has managed the Compensation Fund since 1997. At that time, the Compensation Fund had a balance of $4.5 million and the Compensation Fund rates were $1.60 per thousand of wholesale sales and $0.40 per thousand of retail sales. Since that date, TICO has changed the Compensation Fund rate three times.

Since inception, TICO has reduced the Compensation Fund rate twice with a single increase in 2013.

At $0.25 per thousand of Ontario travel sales, the Compensation Fund rate will return to a level last charged to retailers in the year 2000. The proposed rate level of $0.25 is lower than the TICO Board approved rate of $0.30 originally announced in 2012 which was proposed as a phased-in increase over three years.

To view the Consultation Paper – Click here

To view Frequently Asked Questions – Click here

All registrants are encouraged to provide comments on the proposed Compensation Fund contribution rate increase by April 20, 2016. Feedback can be provided by email, mail or by fax as follows:

Email: ticoconsultation@tico.ca

Mail: Travel Industry Council of Ontario
Proposed Compensation Fund Rate Increase
2700 Matheson Blvd. East
Suite 402, West Tower
Mississauga, Ontario L4W 4V9

Fax: (905) 624-8631

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