MISSISSAUGA — A long-awaited review of the Ontario’s Travel Industry Act has been given the green light by the provincial government.

Details on the consultation process will be released over the next few months. Speaking at yesterday’s TICO AGM, TICO’s VP Operations, Dorian Werda, said there will likely be Town Halls as well as a chance for registrants and the public to offer input online. The government-led process will review the Travel Industry Act, 2002 and Ontario Regulation 26/05.

The goal is to update and modernize the consumer protection legislation, strengthen consumer protection and reduce burden on business. “[The] industry has been asking for a review for some time and TICO is looking forward to working with the Ministry and engaging stakeholders in ensuring a strong consumer protection framework for the future,” said TICO.

Addressing registrants at the AGM, Frank Denton, Assistant Deputy Minister for the Ministry of Government & Consumer Services, said “we’ll take the time to get it right”, noting that industry input during the review process is crucial. “We need an understanding about the people this will affect.”

The travel market has fundamentally changed since the Act was introduced, he added. “There’s been a huge shift in how travel services are delivered.”

Ontario’s Compensation Fund now stands at $20.8 million, essentially flat compared to last year. TICO’s decision to raise contribution rates – albeit in a two-phase ramp-up – was done with the best intentions, said TICO Chair Jean Hébert. “A fee increase is never popular but the Board believes the fee increase is important so that TICO has the necessary resources” to carry out its mandate, said Hébert. “TICO does work very hard to contain its costs but revenue has been declining.”

Phase 1 starts July 1, 2016, when fees go from 15 cents to 20 cents per $1,000 in sales. Phase 2 starts April 1, 2017, when fees bump up again to 25 cents per $1,000 in sales.

“These rates are still lower than they were in 1997 when TICO took over,” said Hébert. Back then the wholesaler rate was $1.60 per $1,000 in sales and for retailers, 40 cents per $1,000 in sales.

The funding model will be up for review as well, said Hébert.

Starting July 1, 2016, the following amendments will come into force:

• Exempting businesses that exclusively offer one day tours from the requirements of the Act.
• Modifying the security deposit and working capital requirements to provide some flexibility for lower risk businesses that are closely tied to government.
• Aligning the filing deadline for regular claims and trip completion claims at six months.

Meanwhile all-in pricing takes effect Jan. 1, 2017. This provision will require registered businesses to display the total price to consumers, including all fees, levies and other charges, when advertising travel services.

There are now 2,093 retail registrants in Ontario and 342 wholesale registrants, for a total of 2,435, said TICO President and CEO Richard Smart. That’s down 2% over last year. “While the number of net registrants continues to decline, the travel market continues to grow,” said Smart.

Total net claims on the Fund amounted to $98,068, the second lowest hit in the past 10 years. Among the most frequent consumer complaints that TICO receives, fraud and suspected fraud is now number one, said Smart, who added that “brazen activity” has been ramping up in the past few years. More than 100 charges were laid last year resulting in 48 convictions, with some $939,000 in fines for the perpetrators, 1,520 jail days and 2,555 probation days.

Continuing with its mandate to raise awareness, TICO’s consumer ad campaign earlier this year got 24 million views over a five-week period. Consumer awareness about TICO and the importance of booking travel through a TICO-registered travel agents reached a record 33% after the campaign. Of those 33%, seven in 10 said they were aware that purchasing travel from a TICO-registered agency or website offered consumer protection.