It’s likely going to cost a little bit more to do business in travel in Ontario this year, but regulatory officials are quick to point out that a proposed fee hike in Compensation Fund contribution rates will still only take retailers and wholesalers back to 2004 levels, reports managing editor, Michael Baginski in this week’s digital edition of Canadian Travel Press.
The Travel Industry Council of Ontario’s (TICO) board of directors approved a rate increase from $0.15 to $0.25 per thousand dollars of Ontario travel sales, which will go into effect July 1 if approved by Ontario’s government.
A Consultation Paper has been sent to all registrants and is posted on TICO’s web site at www.tico.ca and TICO registrants are invited to comment on the proposal by April 15. TICO has also sought input from retailers and wholesalers during a recent round of roundtable events.
Ontario registrar Richard Smart notes that a three-stage fee increase was approved in 2012, but after an initial hike from five to 15 cents per thousand dollars of sales, the next two rounds of hikes were not deemed to be necessary.
Now, a hike is back on the table as TICO is dedicated to maintaining the Compensation Fund at $20 million dollars, as well as embarking a number of new initiatives including fraud control.
“Our goal has always been to keep rates as low as we can,” says Smart, adding, “Nobody likes a rate increase, but we have a mandate to evolve.”
For the full story, check out this week’s digital edition of Canadian Travel Press by clicking here.