After reviewing feedback from stakeholders, the board of directors of the Travel Industry Council of Ontario (TICO) is moving ahead with a proposed increase to the Compensation Fund rates. The board has approved a fee increase from five cents to 15 cents per $1,000 of sales, effective May 1. TICO officials note that when contribution rates were reduced to five cents per $1,000 of sales in 2006, it was advised that the rate reduction, designed to decrease the fund balance, was temporary. The current rate increase is actually occurring two years later than projected in 2006. Board officials say they recognize the current economic situation and the impact it is having on some travel agencies, but it also recognizes that TICO must balance the needs of all stakeholders, including both registrants and consumers. “TICO must be a prudent financial manager and plan for future contingencies. In considering the rate increase, the board is also mindful of the costs to operate TICO and the need to keep those costs as low as possible while maintaining the integrity of its operations,”it was stated in a press release. “The board also recognizes the real need to slow the decline of the Compensation Fund balance so that registrants do not incur significant rate increases in future should the fund go below the appropriate level. By implementing smaller increases over time, the impact on registrants will be less than a one-time increase.”Registrants with questions or that require further clarification can contact TICO at 1-888-451-8426 or 905-624-6241 or via e-mail firstname.lastname@example.org .
TICO approves Comp Fund fee increase
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