Registrar Bulletin: Ontario government to provide burden relief to Ontario’s registered travel agencies and tour operators in response to the COVID-19 pandemic
In response to the COVID-19 global pandemic, changes were made to the General regulation under the Travel Industry Act, 2002 to provide immediate burden relief to Ontario’s registered travel agencies and tour operators, and help certain travellers impacted by COVID-19.
These are challenging and uncertain times for both the travel sector and customers, which is why from the outset of this crisis, TICO has collaborated with the Ontario government to consider burden relief measures aimed at maintaining customer protection while reducing burden on registrants during this difficult time.
“These are unprecedented times for the travel industry and it was important for us to explore opportunities to provide relief to TICO’s registrants, while ensuring the continuity of customer protection,” said Richard Smart, TICO’s President and CEO. “The intention of these measures is to reduce burden for registrants during this time of hardship, while helping certain travellers impacted by COVID-19.”
“We recognize the extraordinary nature of the current situation of COVID-19, and the effect it is having on the travel sector during this financially difficult time,” said Lisa Thompson, Minister of Government and Consumer Services. “Our government will continue to do whatever it takes to ensure the health and safety of all Ontarians, while also taking necessary steps to protect consumers and the travel industry.”
We are pleased to announce the following burden relief measures with immediate effect:
- Vouchers or similar documents for future travel services – Provide a time-limited exemption for registrants under section 46. For a period up to and including March 31, 2021, allow registrants who acquired the rights to travel services for resale to another registrant or to customers, to elect to issue a voucher or similar document to customers where a supplier fails to provide a component of the travel package on or after these changes came into effect, and that supplier’s failure is related to COVID-19.
This applies to registrants with risk contracts and in situations where a registrant has engaged suppliers to bundle multiple travel services, which are advertised and sold to either other registrants or customers for a single price.
The voucher or similar document issued under this time-limited exemption must be of at least equal value to the travel services not provided and be valid for redemption for at least one year following the date of issue - though travel can happen beyond the one-year mark. Subsections 46 (2-5) of the Regulation are in effect until March 31, 2021.
Beginning on April 1, 2021, Section 46 will require a registrant who has acquired rights to travel services for resale to provide to a customer the following when a supplier fails to provide the travel services paid for by the customer:- a refund;
- comparable alternate travel services acceptable to the customer; or
- a voucher or similar document that is acceptable to the customer for future redemption towards travel services.
For more guidance about the use of vouchers or similar documents, please click here.
Relevant section: 46 click here for new | click here for old
- Reduced financial reporting – To reduce administration and expenses associated with financial reporting, depending on a registrant’s Ontario gross sales, eliminate the requirement for an audit report and reduce reporting requirements for small registrants.
- Replace review engagement report requirement with a verification statement for registrants with Ontario gross sales of less than $2 million (a TICO form will be provided to registrants).
- Replace audit report requirement with review engagement report for all registrants with Ontario gross sales of more than $10 million.
Relevant section: 22 – click here for new | click here for old
- Reduced working capital requirements – Existing working capital requirements are eliminated, and registrants must simply maintain a positive working capital, with current assets being greater than current liabilities.
Relevant section: 24 – click here for new | click here for old
- Expanding coverage under the Travel Industry Compensation Fund for customers with redeemed vouchers or similar documents for customers with redeemed vouchers or similar documents – Expanding the coverage under the Travel Industry Compensation Fund for consumer claims involving vouchers or similar documents that may be eligible for reimbursement. This will help ensure that any voucher or similar document that a customer redeems for travel services with a registrant (e.g., flight or cruise), but for which travel services are not provided, may be eligible for a reimbursement claim.
- Temporarily expanding coverage under the Travel Industry Compensation Fund for customers with unredeemed vouchers or similar documents – If a customer is unable to redeem a voucher or similar document issued by a TICO-registered travel agency or tour operator (for greater clarity, does NOT include a voucher issued directly by any end supplier to a customer including airline, cruise line or hotel) for future travel services because of a registrant failure associated with COVID-19, the customer may be eligible for a claim for reimbursement under the Travel Industry Compensation Fund until March 31, 2022.
Relevant section: 57 – click here for new | click here for old
TICO and the Ontario government will continue to monitor the situation as the crisis progresses.
To view the full updates to Ontario Regulation 26/05, please click here (e-laws website). Further details and explanations of each measure will be shared with all registrants shortly.
Additional information
- Registrar Bulletin: Vouchers or Similar Documents
- Additional Registrar Bulletins concerning COVID-19
- Customer information: FAQs that you can share with your clients
To contact TICO
TICO is operating remotely, but we are here to assist you. Any questions can be directed to