An update on the Ontario Small Business Support Grant (OSBSG) is raising questions in the industry about where the financial support is going - to TICO.
ACTA sent out an email on March 3 advocating for agents to contact their MPPs after they received an update from Ministry of Economic Development, Job Creation and Trade regarding OSBSG.
The update ACTA received said that while there has been revenue loss in travel and tourism related services, travel agents and businesses that sell tours are not eligible for this grant, because they have been able to continue operating during the Province Wide Shutdown.
But it's a response from Lisa Thompson, the Minister of Government and Consumer Services, responsible for the regulation of travel agencies that is really raising concerns.
"We are taking measures to provide relief to the travel agent/ wholesaler sector by providing up to $4.4 million in financial support to the Travel Industry Council of Ontario (TICO) in the 2020-21 fiscal year," said Thompson.
"This funding will help support the travel agent/ wholesaler sector by allowing TICO to implement a temporary registration renewal fee waiver and Travel Industry Compensation Fund payment waiver for registrants in the 2020-21 fiscal year, and continue to pay its operating expenses despite providing these waivers."
Does that mean that relief dedicated for the travel agent sector is all going to TICO and not agents directly?
TICO's total operating expenses for 2019/2020 were $4,558,051. The $4.4 million in financial support is meant to go towards TICO's operating costs.
Were their operating costs not slashed like most other companies during the pandemic?
"Travel agencies are receiving some relief in deferred registration fees, but it cannot compare to a $20K grant that other small businesses are getting," ACTA said in a statement to TravelPulse Canada.
"Agencies and agents need access to the grants available to other businesses. Providing relief through TICO does very little, we would suggest the government should do both."
In an email to TravelPulse Canada, TICO VP Operations Dorian Werda, said:
"TICO recognizes the unprecedented challenges that the global pandemic has placed on the travel industry.
The Ontario Government provided $4.4 million in funding to enable TICO to issue a renewal fee waiver and compensation fund waiver, allowing registrants to focus on their priority business needs without the added financial stress of meeting certain payment obligations to TICO.
This is in addition to changes to the general regulation under the Travel Industry Act, 2002 that came into effect in March and December of 2020 to reduce burden on the travel agent and wholesaler sector and help certain travellers impacted by COVID-19. The funds provided to TICO allowed us to continue with our mandate, delegated by the provincial government, of administering and enforcing consumer protection legislation for the travelling public.
TICO, along with the province, continues to monitor the impacts of the COVID-19 pandemic on the travel industry and travellers and consider additional ways to support travel agents and wholesalers."
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