Insolvency protection for package travel

The onset of the holiday season has seen a flurry of activity at the Malta Tourism Authority, following the introduction of an Insolvency fund, which provides security for the refund of payments made by customers for travel packages booked but not availed of and repatriation, in the event that a licensed travel agent becomes insolvent.

The Authority has undertaken several checks over the past months to ensure that travel packages are only sold by appropriate licensed travel agents and that each travel package organiser and/or package holiday retailer is subscribed to the Insolvency Fund.

Several travel agents both in Malta and Gozo were found to be in breach of either license conditions or else were operating without the requisite licence. Fines have been issued and, in some instances, travel agents are subject to further legal action.

The Malta Tourism Authority would like to remind the public that they are only covered for insolvency if they buy their travel packages from a licensed travel agent, who should have an Insolvency Fund membership certificate on display. An insolvency claim can only be made if the customer is in possession of an insolvency fund certificate which must be provided by the travel agent when a travel package is booked.

An awareness campaign is being undertaken by the Malta Tourism Authority together with the Ministry of Tourism.

A full list of all licensed travel agents who are subscribed to the Insolvency Fund can be found on www.mta.com.mt/Insolvencyfund. In case of any difficulty, there is a helpline 2291 5105, which can be accessed during office hours.