The Travel Industry Council of Ontario (TICO) has approved an increase to the Compensation Fund Contribution Rate from $0.15 to $0.25 per thousand dollars of Ontario sales, effective July 1.
In response to stakeholder input, the board of directors approved a phased-in increase over the next two years as follows:
- Phase 1 – The Compensation Fund Contribution Rate will increase from $0.15 to $0.20 per thousand dollars of Ontario sales effective July 1.
- Phase 2 – The Compensation Fund Contribution Rate will increase from $0.20 to $0.25 per thousand dollars of Ontario sales, effective April 1, 2017.
“The TICO board heard the feedback of registrants,” said board chair Jean Hébert. “We understand that the industry is facing difficult challenges from global economic uncertainties, terrorism and other social unrest, as well as locally from continued fiscal/monetary volatility. TICO does, however, require additional funding to effectively perform its mandate. TICO acknowledges its fiduciary responsibilities, including a focus on prudent cost management. While revenues are lower, including investment income as a result of lower interest rates, TICO has maintained strong control over costs, and this focus will continue.
“By phasing in the increase, some relief will be provided to registrants. The board understands the concerns of industry members that the legislation and funding model is dated and needs to be reviewed. Both the board and senior management are committed to continued collaboration with the Ministry to ensure these concerns are understood and considered accordingly.”
TICO’s CEO, Richard Smart added, “Our goal has been to keep fees to registrants as low as possible while ensuring that TICO has appropriate resources to execute its consumer protection mandate in an efficient and effective manner.”