The Canadian Association of Tour Operators (CATO) says an Auditor General of Ontario report on the Tourism Industry Council of Ontario (TICO) shows changes are needed.
In an acknowledgment of last week’s Office of the Auditor General of Ontario Report on TICO, CATO said it has to be optimistic.
“But we also need to be realistic about the next steps, and CATO will have to continue its representation to promote a more effective traveller protection system, if it is confirmed there is still a need for it, and to advocate stopping constant additional administrative and financial burden on the shoulders of the travel businesses in Ontario.
“We create jobs, we provide a positive impact in our economy, but the more fees (taxes) we pay to fund a para governmental organization, the more it reduces our capacity to invest in the future of our industry,” said Jean Hébert, Executive Director of CATO. “First and foremost, the finding by OAGO about the Compensation Fund will require a quick response, once and for all, by the government of Ontario, based on their level of concerns about consumer protection. “
As Open Jaw reported, the Ontario Auditor General report has some harsh words about the performance of TICO, including criticism over the cost of its Compensation Fund, the holding of security deposits, and a lack of compliance inspections.
“TICO’s estimated annual cost to administer the Fund for 2022/23 of $1 million is nearly three times more than the average of $350,000 in compensation paid from the Fund to consumers on average over the last 10 years,” the report notes.
The Auditor General’s office said that the cost of administering the TICO compensation fund may outweigh the benefits it provides for consumers.
“An effective consumer protection system for a real consumer protection must include a compensation fund,” CATO said. “However, it must be fully funded by the travellers and, even maybe, administered independently from TICO. Without those improvements, there is currently no value, and we will support its abolishment.”
CATO said the other recommendations by OAGO “provide essentially to TICO and the ministry guidelines to improve efficiencies in TICO’s processes and (call) for the ministry to exercise more control on TICO.”
But Hébert said it’s unclear what it will cost to introduce added controls, such as the cost of a mandatory code of ethics for registrants and individuals and the cost of a discipline committee to enforce it.
CATO said it fully supports the Auditor General’s idea for a more comprehensive review of the Travel Industry Act (TIA).
“Now, the ball is not only in TICO’s court,” Hébert said. “It is especially a responsibility of the Ontario government to make the right decision that will address the real issues once and for all, and to stop putting on band aids.
“We hope that the OAGO report will be the spark plug to go in the right direction.”
CATO said it hopes to meet with the Ontario government to express its point of view. “We want to explain our concerns about the next steps, and about the future of a system that needs to be aligned with an environment in constant change.
“In conclusion, we do not think that the best decision is the one that Australia has made in 2014 to repeal the country’s travel seller regulation. But we support changes that are oriented through the future, assuming that we live in a province that is open for business, and where the consumer is protected against all forms of wrongdoings."
CATO said it appreciates the Auditor General’s suggestions related to improving TICO efficiency but that changes require serious reflection.
