TICO's AGM brings few updates; ACTA 'disappointed'

STORY BY JILL LANGLOIS

The Travel Industry Council of Ontario (TICO) president and CEO Richard Smart reassured participants of Tuesday’s (Sept. 24) virtual Annual General Meeting (AGM) that nothing “illegal or underhanded” was done following a question regarding the movement of funds from its compensation trust account to its general operations account.

“We’ve been very transparent over the years, with stakeholders, with the government, with the board of directors,” said Smart. “Any moneys that were moved to support operations were consistent with the overall mandate that we have around consumer protection. Having said that, we acknowledge the fact that this is a practice that we wish to discontinue, and we’re on track right now to make those changes in the coming fiscal year.”

The question comes on the heels of the Office of the Auditor General of Ontario’s (OAGO’s) value-for-money audit. The report, released in December 2023, outlined “significant concerns” about TICO’s operations, calling for a review of the Travel Industry Act and its regulation, as well as TICO’s existing mandate, structure and responsibilities, including the much-debated Compensation Fund.

During his opening remarks, Minister of Public and Business Service Delivery and Procurement Todd McCarthy said that his ministry is “carefully considering… the auditor general’s recommendation to undertake a comprehensive review of the Travel Industry Act,” but the issue was not mentioned or addressed throughout the rest of the AGM, leaving the Association of Canadian Travel Agencies (ACTA) “disappointed by the lack of progress” regarding Recommendation 16.

“ACTA urges the Ontario government to prioritize this review and provide a clear timeline for its implementation,” it said in a statement. “The association believes that aligning the regulatory framework with the evolving needs of both the industry and consumers is paramount.”

Smart reiterated during the AGM that TICO has already issued two public progress reports since the audit report was released and, to date, has completed 21 per cent of the 29 action items from the audit.

“By our scorecard, our progress is tracking according to the implementation plan approved by our board of directors,” he said.

The president and CEO also mentioned the status of recommendations that may require regulatory changes and a broader legislative and TICO mandate review, but provided no details of how they are being addressed.

“As of now, these recommendations remain a priority for the minister and ministry, as they consider all initiatives under their mandate,” Smart said. “We are committed to keeping registrant and other stakeholders informed as more information becomes available.”

He noted that the new funding framework and fee model, which came into effect April 1, keeps “the aggregate fee increase equal approximately to inflation” at around 3 per cent and addresses past issues raised by registrants and the auditor general.

“This fee review is just one step forward as we evolve our regulatory model and funding framework,” said Smart.

He noted that TICO’s fiscal results were “solid” and “better than our board-approved budget and an improvement over the prior year, when the industry was still recovering.”

TICO saw an operating surplus for the first time in three years. At $7.3 million, total revenues exceeded expectations and were bolstered by strong topline registered sales, while expenses were below budget at $5.2 million.

Paid Compensation Fund claims totalled $108,759, leaving the fund with a balance of $23,786,930 as of March 31.

Two new directors were also elected during the AGM. Gregory Luciani, CEO of TravelOnly Inc., joins TICO as industry director and Jeffrey Steiner, chair of Canada-Saudi Business Council, is public director.

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