CATO calls on TICO to present greater “value for money” at upcoming AGM

The Travel Industry Council of Ontario’s (TICO’s) AGM is coming up on Tuesday (Sept. 24), and the Canadian Association of Tour Operators (CATO) wants answers.

In a press release issued Friday (Sept. 20), CATO’s Jean Hébert, executive director, and Brett Walker, board chair, outlined their expectations for the meeting, citing several issues TICO has faced over the past 12 months.

The Office of the Auditor General of Ontario’s (OAGO’s) value-for-money audit is one. The report, released in December 2023, outlined “significant concerns” about TICO’s operations, including commentary about the much-debated Compensation Fund.  

The audit, for one, found that TICO’s cost to administer the Fund may outweigh the benefits it provides to consumers.

READ MORE: TICO releases update on Public Action Plan

Ontario’s Auditor General has also advised the Ministry to review the Travel Industry Act and its regulation, and TICO’s existing mandate, structure and responsibilities.

Based on that report, the province may then propose regulatory updates to make Ontario’s regulatory framework "more efficient and effective."

At the time, TICO said it was committed to working collaboratively to consider potential regulatory changes and what the future of consumer protection could look like.

Over the summer, the council revealed that it had completed five action items associated with nine recommendations that were directed at TICO, including a review and revision of its application form and fee structure.

Value for money

At this week’s AGM, however, CATO hopes TICO demonstrates greater value for money, “despite some obvious operation cost increases, notably in governance and board remuneration that have doubled over the last couple of years,” the association’s joint-statement reads.

CATO hopes Ontario will announce a concrete plan to proceed with a comprehensive review of the Travel Industry Act, 2002, and its associated regulations. This was Recommendation 16 from the Auditor General’s report.

The association says that despite the clear directive from the Auditor General, “there has been little progress in addressing” the critical issue.

“We cannot afford to delay any longer”

“The travel industry in Ontario is a vital component of our economy, contributing significantly to job creation and tourism revenue. However, the current regulatory framework is outdated and in need of reform to better serve both consumers and industry stakeholders,” CATO said.

“The Auditor General’s report highlighted several inefficiencies within the existing regulatory system, which can hinder the growth and competitiveness of Ontario’s travel sector. A thorough review of the Travel Industry Act is essential to ensure that regulations are not only effective but also adaptable to the evolving landscape of the travel industry.”

“We cannot afford to delay any longer,” Hébert noted in a statement. “The travel industry is facing unprecedented challenges, and a modernized regulatory framework is crucial for its future success. We ask the government to act on its commitment to conduct a comprehensive review of the Travel Industry Act, 2002 and its regulation, and take decisive action to implement the Auditor General’s recommendations.”

In July, TICO released an update on the progress of its Public Action Plan to address the province’s recommendations. Click here for more details.

As for TICO’s AGM, the full agenda and other meeting materials can be found on TICO’s website.

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