The recent contentious issues between TICO, ACTA, CATO and the Ontario Government regarding the review of Ontario’s Compensation Fund, which saw ACTA and CATO withdraw their appointees to the TICO does not appear to be lessening in intensity or see the various parties finding a solution. These issues are sure to be front and centre at the ACTA summit on September 14 and the TICO AGM on Sep 26.
Jean Hébert, Executive Director of CATO, said in statement issued this week. “The industry can no longer accept to bear the increased costs of an inadequate protection system for both the consumers and for the burden it imposes on the industry.”
ACTA president Wendy Paradis earlier issued a statement that said in part, “The message that ACTA has delivered to government is clear. The industry cannot and should not be bogged down by unnecessary administrative burden to run a travel business in Ontario. The industry cannot and should not be required to financially support an ever-expanding regulator with increased unnecessary legislation and fees.
“Our message has been consistent. If the Ontario government is committed to a Traveller Consumer Compensation Fund in Ontario to cover potential bankruptcies, the current compensation should be fixed, including…that the beneficiary of the fund – the travel consumer – should be the contributor to that Fund as is the model in Quebec.
“The industry is recovering from a catastrophic global pandemic and should not and cannot support unnecessary administrative and financial burden.”
Richard Smart TICO CEO issued a statement this morning (Aug 25) – published in full:
August 25, 2023
I wanted to reach out directly to Ontario’s travel agencies, websites and tour operators to address recent media coverage about TICO’s funding review and the Compensation Fund.
I understand there is apprehension regarding future fees to TICO. The last three years have been devastating for the industry and any uncertainty around financial obligations is stressful.
At TICO, we remain fully committed to our consumer protection mandate. But we do this while being mindful of the travel industry’s well-being.
When the pandemic hit with unprecedented force, we took swift action to ease the financial hardships faced by registrants. For a period of three years, we waived all registrant fees and Compensation Fund payments, reduced the pressures of financial reporting obligations and allowed registrants to issue vouchers at their sole discretion.
Our aim was to provide much-needed relief during these challenging times. We firmly believe that the best way to achieve consumer protection is by fostering a flourishing travel industry.
When businesses prosper, they offer exceptional service to consumers.
Following our announcement to you last September, TICO has worked with a consultant and engaged the Board of Directors to conduct a thorough review of our funding framework.
The objective was to gain insights from stakeholders, including the industry and consumers, while critically assessing funding models from other provinces and countries. This includes the consumer pay model in Quebec.
We wanted to explore all available options to ensure a well-informed recommendation.
I would also like to provide an update on the motion recently brought forward by a CATO member, which proposes that a legislated consumer contribution protection insurance system be instated to replace the current Compensation Fund. Such changes can only be made by the Legislative Assembly.
TICO does not have the authority to institute such a change. Motions brought forward to TICO need to be within the organization’s authority to act upon.
TICO understands the industry’s challenges and the need for flexibility in recovering costs. We are on the same side.
We value our relationship with the travel associations and the perspective they bring.
TICO is not looking to burden or hamper the industry’s recovery or growth. TICO’s operating costs have remained unchanged over the past five years, while reducing burden on registrants.
Our aim is to create an equitable, sustainable, and easy-to-administer model that continues to provide support to consumers in need.
Our goal is to launch a broad and comprehensive consultation process with all of you later this year. This process will provide a meaningful opportunity for all stakeholders to have their say.
We plan to host both virtual and in-person focus groups to hear directly from you.
I’m looking forward to meeting many of you throughout the coming months as we connect over the proposed funding approach.
Thank you for your time.
Sincerely,
Richard Smart
CEO, Travel Industry Council of Ontario
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