The composition of Travel Industry Association of Ontario’s (TICO) board is changing – news that officially filtered out late Friday afternoon and garnered industry reaction over the weekend (see following link). And while the letter from Minister of Public and Business Service Delivery Kaleed Rasheed made it clear that province’s travel industry will have less representation – and input – on the board, many questions remained unclear. We put some of them to TICO CEO Richard Smart. Here’s his reply.
Link: https://travelindustrytoday.com/changes-to-tico-board-questions-still-unanswered/
Q: First some logistics. How is the board currently comprised and how will it change under the minister’s new orders?
A: TICO’s Board of Directors has been reviewing its governance model and Board composition for more than a year and recently approved a motion consistent with the Minister’s Orders.
The number of Board seats has now been reduced from 11 to 9 consisting of:
• 3 Ministerial appointments
• 3* elected travel industry Directors
• 3 elected Directors who are not from the travel industry (broader public)
*The goal for the September 26 AGM is to have the 3/3/3 configuration in place. There is an existing industry Director whose term does not expire until 2024 who is anticipated to continue on.
Prior to this change, there were 11 Directors:
• 4 Directors appointed by the Minister
• 7 Directors from industry (2 ACTA, 2 CATO, 1 OMCA and 2 elected by registrants)
(In summary) there were previously seven industry positions on the Board, which have been reduced to three, which will all be elected (as opposed to having five industry Directors appointed by associations).
Q: Why would reducing the number of board members (whoever they are) provide “best in class” governance as the directive maintains, and doesn’t the new model give shockingly low representation to the travel industry?
A: There will now be equal representation from industry, from the broader public, and from the Minister’s appointees. Directors will be evaluated based on a competency matrix to ensure there are a broad range of skills on the Board to guide TICO’s strategic direction. To ensure the industry’s views are heard and understood, a new industry advisory council will be formed.
Q: The directive says all directors must demonstrate a “positive orientation.” Are the existing reps not “positive”?
A: The Minister is making it clear that all Directors must have consumer protection at the forefront of their responsibilities.
Q: Is having an industry advisory council considered a better way for TICO to receive input from the industry than a couple of board members? And how binding is their input? Is TICO actually trying to engage more widely with the industry than these new mandates may make it seem?
A: The industry advisory council will be formed by Jan. 1, 2024, and will consist of individuals who represent business models from across the travel sector.
The council will include a TICO Board member from the travel sector and will provide input to the Board of Directors. While there are no decision-making powers, nor are recommendations binding, this is an opportunity for the Board to hear from representatives across the industry on significant matters. Industry councils have proven to be effective across many delegated authorities to hear directly from industry.
Q: Given the symbiosis between the industry and TICO – despite the occasional flare-ups – do you think the industry sometimes forgets the consumer protection mandate of the Council?
A: We firmly believe that the best way to achieve consumer protection is by fostering a flourishing travel industry. TICO continuously looks for ways to reduce burden on registrants.
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.
More recently, we simplified trust accounting requirements for wholesalers. We balance registrants’ interests while remaining fully committed to our consumer protection mandate.
Q: ACTA says the industry is still “in the dark” about such issues as the future pay structure for registrants and consumer pay model for the Compensation Fund. When and how will they be addressed?
A: As TICO operates on behalf of the Ontario government, there is an Administrative Agreement that outlines our process for this review (more details HERE: http://bitly.ws/RTXA). TICO’s business case with proposed recommendations is currently with the Ontario government (and) TICO is prohibited from sharing any details until that review is completed.
A comprehensive consultation is expected to begin this fall, inviting all registrants and stakeholders to provide their feedback to TICO through both in-person and virtual sessions. We will share all the details in advance of these sessions.
Q: The application deadline to apply for a position as one of the new directors is soon (Aug. 21) – why is the window so tight, and how does one go about applying?
We have posted the recruitment information on our website and the deadline for applications is next Monday, Aug. 21, 2023. The information can be found HERE: https://tico.ca/about-tico/governance/board-of-directors.html.
TICO registrants will vote on the Director nominees at TICO’s AGM on Sept. 26. By law, TICO must provide information about the nominees to all registrants as part of its Notice of AGM materials, at least one month prior to the AGM, which is Friday, Aug. 25.
On Friday afternoon, TICO’s Board approved a standing committee, called the Governance and Nominations Committee, to reflect Minister’s Order #4. This committee will receive and review applications from industry and the general public.
We have to provide several days for the Committee to be able to review the applications prior to the Aug. 25 deadline, where we communicate all the information to registrants. We agree that it’s a very tight turnaround. For anyone who is interested, the application form is straightforward and we ask that a resume also be emailed to TICO (boardapplications@tico.ca).
We encourage anyone who is interested to review the information and consider adding their name to the ballot. We’re looking for individuals with diverse backgrounds, experiences, and skills.
(Ed note: TICO says it will host a webinar in the coming month to provide more information about how the Minister’s Orders will be implemented and provide an opportunity for registrants and stakeholders to ask questions.)