December 17, 2008 - VICTORIA, BC – Last week the Ministry of Public Safety and Solicitor General (PSSG) announced revisions to the Travel Industry Regulation (the Regulation) under the Business Practices and Consumer Protection Act. The Business Practices and Consumer Protection Authority (BPCPA) is now reviewing the revised regulations and consulting with the Travel Industry Advisory Group (TIAG). An information package and implementation plan is being developed and will be provided to licensees well in advance of the effective date of April 1, 2009. However, the BPCPA has received numerous inquiries regarding specific changes identified in the Government’s announcement.  In response to those inquiries, the BPCPA would like to clarify the following items:

Trust Accounts

Changes to trust account requirements for retail travel agents do not become effective until December 1, 2009. Until that time, travel agents are still required to maintain their trust accounts with a savings institution in British Columbia. Trust account requirements for travel wholesalers remain unchanged.

Net Worth and Working Capital

Effective April 1, 2009, new applicants and licensees will no longer be required to have a net worth of $15,000 for a corporation, or sufficient net worth if it is not a corporation. This change does not impact on the security requirements for licensees. Under the revised Regulation, licensees will still be required to show a reasonable amount of working capital to adequately operate their travel business.

Security

Effective December 1, 2009, new applicants and licensees for retail travel agent licenses will be required to provide a minimum security of $15,000 to the BPCPA and where their gross sales exceed certain thresholds, provide additional security in accordance with the Regulation. The requirement for security has not been eliminated and in some cases may increase. Travel wholesalers will continue to provide security in accordance with the amounts specified in the Regulation.

Residential Operations

Effective April 1, 2009, new applicants and existing licensees will be allowed to seek permission to operate a travel agency or travel wholesaler business from a location other than a commercial place of business. Permission will be granted according to specific policies which will be established by the BPCPA and announced in January, 2009.

Effective Dates

The majority of the revised regulations do not come into effect until April 1, 2009. Other revisions, including new security and trust accounting rules, do not take effect until December 1, 2009. Until these dates, the current regulations are still in place including requirements relating to the current application process, renewal fees, and contributions to the Travel Assurance Fund.

To review the most recent Order in Council (OIC 934) please click here. The BPCPA is in the process of gathering more information, including a Q&A document, for potential and current licensees which will be available on the BPCPA website shortly.

Travel agents and wholesalers have been licensed in BC since 1977. The Province regulates travel agents and travel wholesalers as part of the consumer protection legislation administered by the BPCPA.