WHAT’S NEXT FOR TICO?: Regulator requires a dose of reality, says CATO

CATO executive director Jean Hébert

With the recent “value for money” audit of the Office of the Auditor General of Ontario calling into question the efficiency, effectiveness, and even existence of the Travel Industry Council of Ontario (TICO), the province’s tour operators say any changes to travel industry regulation in Ontario must be “realistic” and not simply be repealed, like in Australia.

Noting that the report seemed to imply that “there are only bad sides and nothing good at TICO, even though I can attest to the high level of professionalism in the TICO organization,” CATO executive director Jean Hébert says his organization will continue to promote a more effective traveller protection system – “if it is confirmed there is still a need for it” – but under the condition that no further financial burden is put on the shoulders of the travel businesses in Ontario.

“We create jobs, we provide a positive impact in our economy, but the more fees (taxes) we pay to fund a para governmental organization, the more it reduces our capacity to invest in the future of our industry,” he said in a statement issued late Friday.

He added that provincial government should make quick decisions – “once and for all” – on the matter.

During the nearly year-long administrative review TICO has been undergoing, CATO has continued to support an effective consumer protection system for travel consumers but has steadfastly maintained that it must include a Compensation Fund that is funded by travellers, not the travel industry.

Whether the Fund is administered by TICO or and independent body in the future, Hébert stated, “Without those improvements, there is currently no value, and we will support (TICO’s) abolishment.”

As for OAGO recommendations for greater oversight of TICO and efficiencies in its efforts, CATO is concerned about the cost of implementation – and who will pay for it.

Hébert cited such examples as the implementation of a mandatory code of ethics for registrants and individuals and discipline committee to enforce it; new regulations; managing individual travel salespersons; a risk rating system; more inspection to oversee registrants; more data collection; tracking information; a better system for complaints handling; and overall, additional red tape for the registrant.

“If TICO couldn’t be efficient in the past, in order to respond to the OAGO’s recommendations there will have to be a cost that the industry will have to pay for once again,” he said.

CATO says it does fully support the auditors recommendation for more comprehensive review of the Travel Industry Act (TIA).

“Now, the ball is not only in TICO’s court,” Hébert said. “It is especially a responsibility of the Ontario government to make the right decision that will address the real issues at once and once and for all, and to stop putting on band aids and to react piece by piece to a bigger problem. We hope that the OAGO report will be the sparking plug to go in the right direction.”