Dalton McGuinty's Government Fails to Reduce Regulatory Burden on
Ontario's Travel Agencies and Tour Operators
TORONTO, Sept. 14, 2012 /CNW/ - It now costs an Ontario travel agency or
tour operator an estimated $10,100.00 per year to comply with Ontario's
Travel Industry Act. This is in spite of promises by Dalton McGuinty's
government to reduce the regulatory burden on Ontario's small and
"We are very disappointed, that the Ontario Ministry of Consumer
Services has failed to reduce the costs for Ontario travel companies to
comply with the Travel Industry Act. While I understand that
protecting consumer funds is essential, other jurisdictions such as
British Columbia, have struck a better balance between consumer
protection and managing compliance costs," explains Darren Swidler,
president of TruExperiences Tours, an inbound tour operator. "I
estimate that 2,500 Ontario travel companies employing more than 20,000
Ontarians are collectively spending more than $25.0 million per year to
comply with this one piece of provincial legislation. No other
administrative authority in Ontario burdens its registrants with such
high compliance costs."
The burden on small and medium-sized Ontario travel companies is
tremendous and includes annual review engagement or audit requirements,
licence fees, educational standard requirements, minimum working
capital tiers and compensation fund contribution fees.
TICO, the administrative authority designated by the Ministry of
Consumer Services to administer the Act, has become a large bureaucracy
and has lost more than $5.2 million since 2007/2008 and is on track to
lose more than $4.6 million over the next three years.
The British Columbia government did not include review engagements,
audits or working capital tier requirements in its legislation due to
the burden on businesses. Compensation fund payments in British
Columbia have actually been 40% lower than in Ontario (adjusted for
population), while minimizing the regulatory burden on British Columbia
The TICO Annual Meeting will be held at 4:00 p.m. on Tuesday, September
18, 2012 at the Toronto Congress Centre. Members of the media are
invited to attend.
SOURCE: TRUEXPERIENCES TOURS INC.
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