Claiming they have been left in the dark regarding Ontario travel regulator TICO’s recommendations on future fees and Compensation Fund funding, ACTA and CATO have withdrawn their appointees from the TICO Board.
The travel advisor and tour operator organizations are demanding a meeting with Kaleed Rasheed, Ontario Minister of Public and Business Service Delivery.
Today, the TICO Board of Directors is expected to give the final approval on TICO’s recommendations to the Ontario government on TICO’s future fee structure and Compensation Fund funding, which will be sent to the Minister for his review. ACTA and CATO are furious that they have not seen the recommendations prior to their submission.
“Our associations want to provide all information before the Minister makes a decision,” said Jean Hébert, CATO Executive Director. “We believe a long-time request for a better consumer protection system in Ontario and a consideration of the financial burden put on an industry, which hasn’t recovered yet from the pandemic, has, once again, been ignored. We want to be included in Ontario’s ‘Open for Business’ plan.”
ACTA President Wendy Paradis. (Photo Credit: Wendy Paradis)
ACTA president Wendy Paradis added: “ACTA and CATO have been denied details on the fee mechanism despite a decade of advocating for change. Both ACTA and CATO have appointees on the TICO board and yet, have been excluded from this information despite numerous requests. “
Hébert says that once the recommendations are approved by the TICO Board, the Minister will have 45 days to react without having heard the concerns from industry.
“The two associations want to make their position known to the Minister given that the industry has once again been denied a legislated consumer contribution ‘insurance’ protection system in Ontario, comparable to the one that is so appreciated in Québec,” said Hébert.
“In our experience, while consultations are expected after the Ministerial review, if all the necessary documentation is not contained in the report, it is difficult for recommendations to change.”
Richard Smart, TICO CEO. (Photo Credit: Travel Industry Council of Ontario)
TICO responded to the move by ACTA and CATO with a statement released this morning.
"Throughout the funding review, which launched in September 2022, we have placed great emphasis on conducting a thorough and inclusive consultative process, actively seeking input from Ontario consumers, registrants, and industry stakeholders, a practice we will continue," said Richard Smart, TICO CEO.
"Our approach hinges on striking a delicate balance between the interests of Ontario consumers and the industry, while also thoughtfully considering the real-world implications of any recommendations in the broader economic and political context."
Smart added: "As previously communicated, TICO must follow a set process prior to releasing any recommendations publicly. A comprehensive industry consultation is expected to launch this fall."
Last month, ACTA and CATO issued a media release outlining their joint frustration with the lack of transparency on the financial impact on TICO registrants.
“Our joint action sends a clear message to government that we oppose this process. We also want to emphasize what ACTA and CATO have long been calling for – a regulator that should be the “right size” to match the industry it is regulating, not one that is considering an increased financial burden on its Registrants -- especially when it is those same Registrants that were the hardest hit businesses during the COVID-19 pandemic,” said Paradis.
“We believe that it is important that our associations stand up for not only the travel industry but also for the public interest and take a strong stand for a better Ontario Compensation Fund funding model. For all those reasons, we do NOT want to put our appointees in a situation that raises a fundamental conflict of interest,” said Hébert.
ACTA and CATO have sent a joint letter to Minister Rasheed requesting an urgent meeting to stress that important changes must be made to the process, and for a better, fairer funding system.
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