Ontario Travel Industry Act Lobby Update

Based on a strong mandate from our Ontario members, ACTA has made it a priority in 2019 to aggressively lobby the new Provincial government for long overdue relief for the industry from the burdens of the Travel Industry Act (TIA) and the Travel Industry Compensation Fund.

Through our Ontario Member TIA Survey, open forums, travel agency advisory council meetings and travel agency consultations, our members have told us that their primary concern is the unfairness of the Compensation Fund and the financial and administrative hardship it causes their business.

While the Fund currently sits at $21 million, TICO has informed the government that an actuarial study recommends the fund should be $50 million, which could mean doubling industry contributions.

ACTA and CATO team up to lobby on behalf of the industry

Late in 2018, ACTA and CATO (Canadian Association of Tour Operators) joined forces to hire a lobbyist to ensure our message to the key politicians is front and center. A team of ACTA and CATO senior leaders have been actively meeting with Ontario Government officials over the past six months.

Our message is as follows

  • We support consumer protection. However, the Compensation Fund model is outdated and significantly broken. It was designed in the 70s in an era of a cash and cheque economy-- and before the internet and e-commerce.
  • It is an unfair financial and administrative burden on registrants and is not sustainable in a global market, creating a disadvantage for Ontario travel companies making them uncompetitive.
  • The Compensation Fund does not work for consumers – it is confusing, has many limitations and delays before paying. This includes requesting a chargeback if payment was made by credit card or requesting reimbursement from a travel insurance policy. This in turn causes credit card processors to put a burden on the industry with higher merchant fees.
  • Ontario must move to a consumer pay model like the one in Quebec for the Compensation Fund to be sustainable and adequately cover end supplier failure.
  • There is no perceived benefit from the Compensation Fund for Corporate Travel Agency clients yet they pay significant amounts into the Fund.

Next Steps and How You Can Help Our Advocacy Efforts

ACTA’s lobby group will continue to work with our lobbyist with more discussions scheduled with the Minister of Government and Consumer Services, the Treasury Board and the Premier’s office.

ACTA will be hosting a member consultation on our TIA Lobby Efforts on May 28th from 2 to 4:30 PM. The meeting will be held at the ACTA office in Mississauga. If you would like to participate, please RSVP here.

ACTA will also be asking members to support a letter writing campaign shortly. We will continue to keep members updated. Should you have any questions or concerns, please contact Heather Craig-Peddie, Vice President of Advocacy and Member Relations at hcraig-peddie@acta.ca or Wendy Paradis, President at wparadis@acta.ca.