{November 27, 2009} VICTORIA, BC - All licensed BC travel agents and travel wholesalers are advised that the second phase of changes, announced by the Government in December 2008, to the Travel Industry Regulation under the Business Practices and Consumer Protection Act become effective December 1, 2009.

Changes in security requirements for travel agents
Effective December 1, 2009, security for travel agents will be an indexed amount based on the total annual sales from all BC locations in your fiscal period. This formula will replace the current requirement of $15,000.00 for a single location plus $5,000.00 for each additional branch location. The minimum amount will continue to be $15,000.00.

Total Retail Sales From Previous Fiscal Period  /  Amount of Security Required:

• $0 - $4,999,999.99  /  $15,000
• $5,000,000.00 - $9,999,999.99  /  $25,000
• More than $10,000,000.00  /  $40,000

While the change is effective December 1, 2009, security adjustments will be calculated at the end of your first fiscal period following December 1, 2009. The fiscal year end notification packages sent by Consumer Protection BC will include a security calculation worksheet. This document will assist you to calculate your new security amount and must be submitted with your financial statements.

Security requirements for travel wholesalers remain unchanged.

Trust account requirement eliminated for travel agents
Effective December 1, 2009, trust account requirements for travel agents will be eliminated.  You are cautioned, however, that your current liability for prepaid travel services will remain and you must ensure that sufficient funds are in place to meet your obligations.

Trust accounting requirements remain unchanged for travel wholesalers.

Caveat to total sales calculations for security and Travel Assurance Fund contributions
Consumer Protection BC recognizes that there are certain circumstances where licensees involved in transactions with out of province agents and their clients would result in sales which would not be eligible for claims against, and thus pose no risk to, the Travel Assurance Fund. We are prepared to allow you to deduct these sales when determining the amount of your contribution to the Travel Assurance Fund and the amount of security that must be provided to the Director. Details regarding this deduction will be sent with financial packages following your fiscal year end.

For further information, please contact our Licensing department.