Lately downtown Toronto has been packed with tourists from all over the world. They’ve got places to go and money to spend. Therefore, it’s hardly surprising that sight-seeing tour operators are springing up at major intersections to attract potential customers. The packages vary from in-town rounds to day-tours to the surrounding attractions, such as the Niagara Falls.

Besides the well-established sight-seeing companies, there are also “underground” operators who attract budget-conscious tourists with lower rates.

For example, opening one local paper you may expect to see the following ads:

Buffalo Shopping Tour - $79

(A return bus ticket costs much more than $79)

Niagara Falls - $50 per person

(The licensed ones range from $79 to $139)

Airport rides - $20 one way

(A one-way taxi from downtown Toronto to Pearson International Airport costs at least $50)

These operators are mostly private individuals with a vehicle trying to make a quick buck. I call them “underground” because most of them aren’t licensed and don’t have the necessary registration and permits. They are often significantly cheaper than their established counterparts but promise the same attractions.

So what’s the problem?

The problem is this: what if there’s an accident during the tour?

Because these unlicensed operators often attract customers based on their low price, cost becomes a major concern. As the result of the relentless cost-cutting, proper maintenance of the vehicles may be neglected.

Further, these tour operators often work from their personal vehicles. Without commercial insurance coverage, injuries as a result of commercial activities are excluded. If an accident occurs during one of the paid tours, the insurance company will likely deny coverage to the injured passengers.

The consequences may therefore be devastating. Besides the physical injuries, there may be psychological trauma from being injured in a foreign place and financial ruin as the result of  astronomical medical care expense for the uninsured.

If you’re planning a vacation, be sure to remember safety first!