The Travel Industry Council of Ontario (TICO) says it is still "premature" to share the findings of its months-long review of the funding framework and fee model that began in fall of 2022.
That's despite calls by stakeholders - including ACTA and CATO - for more transparency and for change.
In SEPT 2022, TICO initiated the largest review of its funding framework and fee model since its establishment with Ontario-based consulting firm Optimus SBR. The review encompassed TICO's funding framework for regulatory services, the Compensation Fund, and related contributions. Upon concluding the review in spring 2023, Optimus SBR has prepared its recommendations for TICO's consideration.
However, TICO CEO Richard Smart stated that the disclosure of findings will be delayed.
"We understand the industry's keen anticipation for the review's outcome," said TICO CEO Richard Smart. "While we are equally eager to disclose the findings, we are currently finalizing our fee review analysis (business case), which will be submitted to the Ministry of Public and Business Service Delivery prior to launching consultations. It would be premature to share incomplete information at this stage."
ACTA and CATO: "Kept in the dark"
Earlier in JUN, as Open Jaw reported, ACTA and CATO released a joint statement, calling for a new funding model that puts the burden of consumer compensation on the user, not on travel wholesalers and retailers.
At that time, ACTA and CATO said they’ve been “kept in the dark” on the findings of TICO's review of the financial impact on TICO registrants and that TICO and the Ontario government are placing an “unfair and uncompetitive burden on travel businesses.”
“Travel registrants will once again be called upon to pay the rising and staggering costs of an inadequate and costly system that doesn’t offer very much to consumers. TICO’s core mandate being consumer protection,” said Jean Hébert, CATO Executive Director.
CATO and ACTA say they have joined forces to speak out about shared concerns regarding the provincial regulator and in particular their opposition to maintaining the current registrant fee system to fund the Ontario Consumer Compensation Fund.
“While both organizations applaud the review of TICO, a full review of all TICO programs and administrative costs is needed,” said Wendy Paradis, ACTA President. “We hope the current audit conducted by the office of the Ontario Auditor General –dubbed the ‘Value for Money audit’- will provide positive results and responses to our concerns. However, we are very concerned that nowhere does it appear to mention moving to a consumer “insurance” contribution model, that we have long been advocating.”
TICO: Consultations this fall
Smart emphasized that that any changes to registrant fees will follow the process and criteria outlined by the provincial government. The final approval of the business case rests with TICO's Board of Directors, after which it will be submitted to the Ministry in accordance with the agreement.
Meanwhile, TICO expects consultations to begin this fall, and says it will be inviting all registrants and stakeholders to provide their feedback to TICO through both in-person and virtual sessions.
In a statement, TICO states that any future funding model will be be guided by what it says will be fairness, simplicity, efficiency, enhanced transparency.
