TORONTO — The Ontario government is still “carefully considering” a review of Ontario’s Travel Industry Act as well as the need for the Compensation Fund, however for ACTA the lack of progress is a concern.

At yesterday’s TICO AGM, Ontario’s Minister of Public and Business Service Delivery and Procurement, Todd McCarthy, said the past 12 months had been “a transformative year for travel industry and for TICO.”

In October 2023 TICO released five proposals for its future funding framework, fee structure and Compensation Fund. The proposals included decreased Comp Fund payments, recalibrated registrant renewal fees and more. Several of the proposals, including the new fee structure, took effect April 1, 2024. TICO also brought in a new structure for its boards, as well as new advisory councils – a consumer council, and an industry council.

Then in May 2024 TICO shared an action plan in the wake of the ‘Value-for-Money’ audit released by the Office of the Auditor General of Ontario in December 2023. The audit included this takeaway: “TICO’s cost to administer the Compensation Fund may outweigh the benefits it provides to consumers.”

ACTA WEIGHS IN

Citing the value-for-money audit, Minister McCarthy said: “I recognize the progress TICO has made, as well as TICO’s transparency.”

He added: “My ministry is carefully considering the AG’s recommendations to do an assessment of the Travel Industry Act, and to assess the value of the Compensation Fund.”

Like CATO, ACTA is urging progress on recommendation 16 from the AG’s audit. That recommendation calls for a comprehensive review of the Travel Industry Act, 2002 – and based on that review, “regulatory updates to make Ontario’s regulatory frame-work more efficient and effective.”

The response to recommendation 16 from the Ministry in the December 2023 audit echoes Minister McCarthy’s input yesterday: “The Ministry agrees with the Auditor General’s recommendation. The Ministry will carefully consider the observations and recommendations made by the Auditor General in this report to inform a proposal for government consideration to undertake a review of the Travel Industry Act, 2002 (Act) and TICO.”

The audit can be read in full here (with recommendation 16 on page 44).

This morning ACTA issued a statement expressing its disappointment with the lack of progress.

ACTA says it is concerned that nearly a year has passed since the publication of the AG’s report, and that following an initial meeting with Ministry staff in December 2023, ACTA has received no further updates despite repeated inquiries.

ACTA is urging the Ontario government to prioritize this review and provide a clear timeline for its implementation. Aligning the regulatory framework with the evolving needs of both the industry and consumers is paramount, says ACTA President Wendy Paradis.

“We call on the Ontario government to engage in open dialogue and take prompt action to address this pressing issue,” said Paradis. “The continued growth and success of Ontario’s travel industry depend on modernizing our regulatory framework.”

A review of the Travel Industry Act, 2002 is vital for Ontario travel agencies and independent travel advisors, she added.

$18.1 BILLION IN ONTARIO GROSS SALES

The latest numbers from TICO include $18.1 billion in Ontario gross sales. That’s back to pre-pandemic levels, said TICO CEO Richard Smart in his AGM report.

Strong growth is tempered for many TICO registrants by debt as a result of the pandemic, and increasing competition, he noted.

Smart said TICO is 21% complete in implementing the AG audit’s action items targeted at TICO. The action plan and updates on the progress can be found at TICO.ca.

For the first time in three years, TICO saw an operating surplus, with $7.3 million in revenues, and expenses coming in under budget at $5.2 million.

COMP FUND CLAIMS

Comp Fund claims paid totaled $108,759 for the year. The balance of the Comp Fund as of March 31, 2024 was $23,786,930.

For consumer support, TICO resolved 281 written complaints, 1,085 telephone complaint inquiries and 1,229 email complaint inquiries. Restitution for consumers totaled $354,534.

Looking ahead, Smart says TICO has its three-year business plan to guide priorities and activities, plus TICO will be monitoring consumer confidence, and focusing on collaboration with the industry to maintain a trusted marketplace.

REGISTRATION & EDUCATION UPDATE

TICO registrations remain strong, with 1,921 registrations for the year. There were also 135 voluntary terminations. That’s compared to 328 terminations the year before. “This remains a difficult operating environment for many registrants,” said Smart.

TICO is also seeing historic numbers of new-to-industry professionals taking the TICO exam. More than 10,000 exams were written in 2023-24, an increase of 41% year over year. “It’s the highest number of exams written in a single year, ever,” said Smart.

TICO is currently developing a new e-learning program that’s expected to roll out next year. “It’s a much more user-friendly platform,” said Smart.

LUCIANI GETS THE VOTE

The AGM also included a vote for an Industry Director position, and Gregory Luciani, CEO, TravelOnly emerged the winner.

During the Q&A portion of the AGM, a registrant asked about TICO’s use of Comp Fund monies for operating expenses. The same question came up at the 2023 AGM, and Smart addressed it again.

“This has been a practice that has occurred since TICO’s inception, and the issue has been raised many times in the past,” said Smart. “We’ve taken those comments seriously and taken a number of actions in place. Nothing was done illegally or in an underhanded way. Any monies moved to support operations were consistent with consumer protection.”

Having said that, he added, “this is a practice that we wish to discontinue and we are working towards that.” The updated fee bands implemented April 1, 2024 underpin TICO’s goal of addressing the funding gap.

A recording of yesterday’s AGM will be made available on TICO’s site in the coming weeks.