Updated | Ministry: MTA, not insolvency fund, to cover Fantasy Tours losses

The tourism ministry on Tuesday denied that the customers who suffered losses from the bankruptcy of Fantasy Tours would be compensated through the recently launched insolvency fund.

In a statement, the ministry said it would be honouring its commitment to the people affected through the Malta Tourism Authority and that this would happen "independently of the setting up of the insolvency fund"

FATTA (Federation of Travel Agents) had earlier called on the government and the Malta Tourism Authority to deny press reports implying that customers who suffered losses from the bankruptcy of Fantasy Tours would be compensated by the recently launched insolvency fund.

It argued that the Legal Notice setting up the fund stated that the fund will only cover bookings made from the date of publication of the Legal Notice.

“The fund, which will be guaranteed by travel agencies licensed to sell package tours, is not intended to compensate for the shortcomings of the Regulator and Government in implementing the European Commission directive protecting consumers from insolvency of package operators,” the federation said.

“The burden of any compensation that might be due for past failures must solely be borne by the government and regulator themselves and should not be passed on to legitimate operators and ultimately and indirectly to the consumer.”

FATTA said that the new insolvency fund should only carry the true costs of administration of the fund and that funds cannot be siphoned out by the regulator to recoup any compensation payments made for insolvencies predating the fund.

“FATTA reiterates that the cost of contributing to and maintaining the insolvency fund will ultimately be carried by the consumer and is committed to ensure such costs are kept to the bare minimum for the benefit of the consumer. FATTA will therefore strongly resist any attempt by the MTA to load any unjustified or illegitimate cost burden on the fund,” the federation said.

FATTA also called on the MTA to “get its act together” and update its database and regularly publish an updated list of operators licensed to sell travel packages.