Fund will safeguard Maltese tourists when travel agencies go bankrupt

An insolvency fund has been set up to act as a cushion for Maltese tourists in case their travel agencies go bankrupt ahead of their holidays abroad.

The €500,000 fund will be financed by around 70 travel agencies, whose contributions will vary according to their size and market share.

It was announced by tourism minister Edward Zammit Lewis as a reaction to the notorious case of the Fantasy Tours travel agency, which closed down overnight in August 2013, cancelling nearly €400,000 worth of paid-up holidays and leaving customers stranded in foreign airports. The holidaymakers were informed of the shutdown through an SMS.  

“Although it is rare for a Maltese travel agency to go bankrupt, the [Fantasy Tours] case exposed the need for a law to safeguard tourists from such an eventuality.”

The fund will be managed by a board that will be composed of representatives of the tourism ministry, the Malta Tourism Authority, and the Federated Association of Travel and Tourism Agents (FATTA).

Quoting national statistics, Zammit Lewis said that around 103,500 people travelled abroad in the first quarter of this year, an increase of 33% when compared to the previous year.