Financial Overview & Compensation Fund Update
The Travel Industry Council of Ontario (TICO) unveiled a new funding framework and fee structure as of April 1, 2024, addressing recommendations from the Auditor General. This evolution sees TICO’s operational costs supported by registration and related fees from registrants.
In the latest fiscal year, TICO reported revenues reaching $7.8 million, marking a nearly 7% increase compared to the previous year. Under the new structure, renewal payments accounted for 57% of total revenue. However, expenses rose significantly to nearly $6 million—an increase of 16%—largely attributed to enhancing resources and implementing recommendations from the Auditor General.
Claims against the Compensation Fund surged to $403,000, up from $109,000 the previous year, although this is still below actuarial projections. The fund’s balance as of March 31, 2025, stands at just under $24 million, reflecting a modest increase of about $200,000 from the prior year.
Registration and New Entrants in Ontario’s Travel Industry
Chief Operating Officer and Registrar Dorian Werda indicated that TICO’s registrant base remains consistent, with 1,894 registrations as of March 31, 2025, slightly down from 1,921 the year before. The year saw 141 voluntary terminations and 114 new registration applications—the latter number representing one of the highest in recent years.
“This signals that entrepreneurs recognize growth opportunities within Ontario’s travel sector,” stated Werda.
Furthermore, approximately 9,000 individuals completed TICO’s certification exam within the year. Despite an 11% dip from the previous year’s peak, this figure remains above pre-pandemic levels, suggesting that careers in travel sales are still viewed favorably in Ontario.
TICO is also in the process of finalizing an updated certification program, which will be offered as an interactive online course. Developed with an adult education provider, this enhanced program will focus more on applying regulatory knowledge in practical settings rather than rote memorization. More information regarding this initiative will be available soon.
Introduction of Risk-Based Compliance Framework
A major announcement from Werda included the introduction of TICO’s new risk-based compliance framework, designed in direct response to the Auditor General’s recommendations. This framework will assign risk scores to travel agencies and tour operators from the point of registration, shaping oversight activities that will commence later this year.
“Our goal is to enhance proactive oversight, ensuring our resources are directed where they are most necessary,” emphasized Werda.
Additionally, a 50% spike in warnings issued this year targeted unregistered travel sellers, particularly short-term rental agencies and specialized travel organizers. Despite the hefty increase, TICO successfully brought over 90% of these operators into compliance, with the remaining 10% forwarded to the investigations department. “We prioritize education and support before enforcing compliance,” added Werda.
Consumer Support and Feedback
TICO handled thousands of consumer inquiries over the past year, noting a decline in written complaints from 281 to 116. The regulator facilitated $121,441 in consumer restitution, significantly lower than the $354,000 recorded the previous year. A considerable number of airline-related concerns were redirected to the Canadian Transportation Agency, while TICO addressed various complaints encompassing cancellations, lack of disclosures, and service dissatisfaction.
Board Elections and Audit Results
The meeting concluded with the election of Mike Foster from Nexion Travel Group Canada to the industry director position on TICO’s Board of Directors. Heather Colquhoun was selected for the Public Director role.
TICO’s financial statements received a positive audit opinion from BDO Canada, affirming that they accurately reflect the organization’s financial status in accordance with Canadian accounting standards for not-for-profit organizations. BDO Canada, TICO’s auditor since 2016-2017, has been re-elected to serve for the 2025-2026 term.
For more information about TICO’s operations and consumer support initiatives, visit TICO’s official website.
