TORONTO - Other travel agencies may be facing financial woes similar to Conquest Vacations, whose sudden collapse standed thousands of travellers abroad, Premier Dalton McGuinty said Tuesday as he called for a review of the travel industry's self-regulating watchdog.

While the Travel Industry Council of Ontario came under fire for not warning consumers about Conquest's precarious position, McGuinty said the agency has to walk a fine line.

"The problem is right now there are likely a number of businesses that are experiencing some real challenges, and if TICO were to blow the whistle on them, that's the equivalent of a death sentence," he said.

"Sadly there is always the possibility that this kind of thing might recur, sooner rather than later."

Since there's no "warning card" equivalent under the TICO system, McGuinty said he wants a quick review of the agency to see if it needs more powers to protect consumers.

"That's the issue: at what point do we kind of call the game and at what point do you simply hold up a warning card, so the public is made aware there may be some challenges associated with this business?" he said.

"If TICO blows the whistle too early, then all the people who are employed in that travel business are going to be out of a job."

The travel council has said it's trying to help Canadians who have been told they must pay for their hotel rooms after Conquest closed its doors last week because of economic problems, leaving many of its customers in the lurch.

Many travellers had horror stories of vacations turning sour overnight as hotels demanded thousands of dollars from them for trips they believed had already been paid for.

The New Democrats scoffed at McGuinty's defence of TICO, and said the agency has no integrity whatsoever and is nothing more than an apologist for the weak and bad players in the travel agency industry.

"Don't tell me about a death sentence for the travel agency, tell me about the incredible injustice to travellers who paid thousands of dollars to go to a resort and find themselves stranded, extorted and pushed around by local cops," railed NDP critic Peter Kormos.

"I think TICO has demonstrated itself to be a total failure when it comes to consumer protection."

The Progressive Conservatives also said TICO had failed consumers and is essentially powerless to help protect travellers.

"What purpose and what value are we getting out of TICO? Clearly we have to review how TICO operates," said Opposition critic Randy Hillier.

Small Business Minister Harinder Takhar, who has responsibility for TICO, said unlike the premier, he didn't think any other tour operators were on shaky financial grounds.

"I'm not aware of any issue facing the travel industry that is serious and that consumers should be concerned about at this time," said Takhar.

McGuinty admitted the province should have done more to help people who were stranded when Conquest folded last week.

"I think we owe a little more to travellers (but) I'm not exactly sure what that is," he said.

"I'm wondering if there's not more notice that we could have given to travellers dealing with Conquest that it was experiencing some real challenges."

The premier said the travel council knew Conquest was vulnerable but didn't know it was about to go under so quickly, and said he wants to review the agency "and make sure they have the necessary authority to intervene at the appropriate times."

TICO administers a $29-million Ontario travel industry fund that will reimburse travellers up to $5,000 if they're forced to pay their hotel because their tour operator did not pay the bill.

TICO CEO Michael Pepper did not immediately return calls for comment Tuesday.