The government of Ontario has issued new orders for the Travel Industry Council of Ontario (TICO) that will see the organization’s Board of Directors reduced from 11 members to nine.
The government also mandated TICO to create an industry advisory council, comprised of members representing the interests of travel agents and travel wholesalers, to report to and advise the Board.
The ‘Minister’s Orders’ to TICO include the following:
- Decrease the number of Board members from 11 to 9.
- Ensure all Board members possess a positive orientation for proactive consumer protection initiatives.
- Ensure no more than 34% of the members of the Board are drawn from the travel agent and travel wholesaler industry.
- Establish a nominations committee with requirements around eligibility criteria for nominated Board members.
- Establish an industry advisory council as noted above.
The ministry says the changes are designed to: enhance consumer protection; enhance accountability for the sector; present an opportunity for TICO’s Board to lead in governance best practices; and provide a forum for industry to identify issues and provide advice to TICO’s Board.
The Travel Industry Council of Ontario celebrated 25 years at its virtual AGM led by CEO Richard Smart. (Photo Credit: Travel Industry Council of Ontario)
TICO CEO Richard Smart described the reasoning behind the changes:
“While TICO’s existing Board structure has served the organization well for many years, this governance change brings added balance to the Board and reflects best-in-class governance practices. This change allows for a more diverse range of voices to actively contribute to TICO’s consumer protection mandate, while still ensuring the industry has a strong voice at the table.”
Similar governance changes have been implemented at other ‘Delegated Administrative Authorities’ in Ontario including the Ontario Motor Vehicle Industry Council (OMVIC), Home Construction Regulatory Authority (HCRA) and Tarion.
TICO says it is making the necessary by-law changes to implement these orders, which will be presented at the regulator’s Annual General Meeting, scheduled virtually for Tuesday, September 26, 2023 at 5 pm.
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.
ACTA president Wendy Paradis. (Photo Credit: Wendy Paradis)
ACTA president Wendy Paradis says the travel advisor organization knew the changes were coming.
“ACTA is not surprised by the disclosure of the Ontario government orders to change the composition of the TICO board. ACTA met with the Ontario Attorney General last spring and the Director of Consumer Policy in early July, both groups spoke about this future model for the TICO board.”
Paradis continued: “Regardless of this change in board composition, it is important that the voice of the industry is heard by TICO and the Ontario government – and to this end, there will be two industry directors on the new board and there will be an industry advisory council formed.
The news comes as ACTA and TICO are embroiled in a dispute over transparency regarding potential changes to the TICO fee structure and the mechanism for funding the province’s Compensation Fund.
Last month, ACTA and the Canadian Association of Tour Operators removed appointees from TICO board meetings as a method of protest. The organizations said their appointees will not attend meetings until the TICO AGM in September or until they are given a copy of TICO’s recommendations to the Ontario government on TICO’s future fee structure and Compensation Fund funding.
ACTA has requested an urgent meeting with Minister Kaleed Rasheed, Minister of Public and Business Service Delivery of Ontario to discuss the Ontario Consumer Compensation Fund funding model before TICO’s consultation with registrants and stakeholders takes place this fall.
“The Ontario government continuously ‘says’ it is committed to red tape reduction – a reduction in administrative and financial burden on Ontario business. They say…Ontario is ‘open for business,’” ACTA said in a statement delivered over the weekend.
“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.”
ACTA wants the Compensation Fund in Ontario that covers potential bankruptcies of travel companies to be funded by travel consumers – 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,” Paradis says.
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