As ACTA and CATO continue to criticize Ontario travel industry regulator TICO over a perceived lack of transparency on proposed changes to the way consumer protection is funded in the province, TICO CEO Richard Smart has issued a letter addressed to Ontario’s travel agencies, websites and tour operators.
“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,” Smart writes.
He stresses that TICO remains remain fully committed to its consumer protection mandate, but insists that this can be done “while being mindful of the travel industry's well-being.”
Smart adds: “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,” Smart adds. “We firmly believe that the best way to achieve consumer protection is by fostering a flourishing travel industry.”
The TICO CEO says that over the past year it has worked with a consultant and engaged its Board of Directors to conduct a thorough review of its 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,” Smart says.
“We wanted to explore all available options to ensure a well-informed recommendation.”
Smart says a CATO member recently brought forward a motion to TICO proposing that a legislated consumer contribution protection insurance system be instated to replace the current Compensation Fund.
“TICO does not have the authority to institute such a change,” Smart says. “Such changes can only be made by the Legislative Assembly. Motions brought forward to TICO need to be within the organization’s authority to act upon.”
Smart says TICO understands the industry’s challenges and the need for flexibility in recovering costs.
“We are on the same side,” he says. “We value our relationship with the travel associations and the perspective they bring.”
The TICO CEO says his organization 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.”
Smart says TICO’s goal is to launch a broad and comprehensive consultation process with all stakeholders later this year.
“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.”
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