ACTA and CATO pull their appointees from TICO board

The Association of Canadian Travel Agencies (ACTA) and the Canadian Association of Tour Operators (CATO) have withdrawn their respective appointees from the TICO board. 

The move comes in response to a pressing demand for a meeting with the Ontario Minister of Public and Business Service Delivery, the Honorable Kaleed Rasheed.

The two associations are also asking for a copy of TICO’s recommendations to the Ontario government on future fees and Compensation Fund funding

Later today, the TICO Board of Directors is set to grant the final approval for these recommendations to the Ontario government, which will then be sent to the Minister for review. 

“Our Associations want to provide all information before the Minister makes a decision. We believe a long-time request for a better consumer protection system in Ontario and a consideration of the financial burden put on an industry, which hasn’t recovered yet from the pandemic, has, once again, been ignored. We want to be included in Ontario’s ‘Open for Business’ plan,” said Jean Hébert, CATO executive director. 

As the situation unfolds, both associations are determined to have their voices heard and ensure their concerns are taken into account.

“ACTA and CATO have been denied details on the fee mechanism despite a decade of advocating for change,” said Wendy Paradis, ACTA president. “Both ACTA and CATO have appointees on the TICO board and yet, have been excluded from this information despite numerous requests. “

Once the TICO board grants approval, the Minister will have a limited 45-day window to respond, prompting questions about the absence of industry input during this crucial period.

"The two associations want to make their position known to the Minister given that the industry has once again been denied a legislated consumer contribution 'insurance' protection system in Ontario, comparable to the one that is so appreciated in Québec,” said Hébert.

“In our experience, while consultations are expected after the Ministerial review, if all the necessary documentation is not contained in the report, it is difficult for recommendations to change.”

In a media release issued last month, ACTA and CATO jointly expressed their frustration with the lack of transparency regarding the financial impact on TICO registrants.

“Our joint action sends a clear message to government that we oppose this process. We also want to emphasize what ACTA and CATO have long been calling for – a regulator that should be the “right size” to match the industry it is regulating, not one that is considering an increased financial burden on its registrants -- especially when it is those same registrants that were the hardest hit businesses duringthe COVID-19 pandemic,” said Paradis.

“We believe that it is important that our Associations stand up for not only the travel industry but also for the public interest and take a strong stand for a better Ontario Compensation Fund funding model. For all those reasons, we do NOT want to put our appointees in a situation that raises a fundamental conflict of interest,” said Hébert.

In response, Richard Smart, TICO’s CEO, shared with PAX: "TICO is governed by its Board of Directors and the Ministry of Public and Business Service Delivery. Further details regarding industry appointments to TICO's Board of Directors will be disclosed in due course. TICO remains steadfast in its commitment to consumer protection and will continue to actively engage with all stakeholders."

He added, "throughout the funding review, which launched in September 2022, we have placed great emphasis on conducting a thorough and inclusive consultative process, actively seeking input from Ontario consumers, registrants, and industry stakeholders, a practice we will continue. Our approach hinges on striking a delicate balance between the interests of Ontario consumers and the industry, while also thoughtfully considering the real-world implications of any recommendations in the broader economic and political context."

ACTA and CATO have sent a joint letter to Minister Rasheed, urgently requesting a meeting to address essential changes to the process and a more equitable funding system.

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