Imagine if you are taking a leisurely holiday in Corfu – away from the madding crowd, the noise pollution and the occasional spectacle of a burst of flames coming from an overheated bendy bus – and being unfortunate enough to have bought such a holiday at a discount from Fantasy Tours, operated by Golden Travel Club Ltd.
The website introduces Fantasy Tours (FT) as a travel agency that employs vastly experienced and well-trained staff who will leave no stone unturned in order to see to their clients’ needs and expectations – be it for a business trip or vacation. So far, so good. And the promotional banner continues to assure us plebeians that FT is a trusted agency – fully licensed by the Malta Tourism Authority (MTA) – that caters for well over 15 per cent of the outbound tourism market share through its main branches that are well spread over the Maltese Islands.
The MTA will be well advised that such bad apples are giving a hell of a service. Is the Authority carrying out its regular surveillance on its licensees to guarantee that consumers are getting their money’s worth? The travellers who save for an annual tour will tell you that this is usually a milestone in their hard-working life and that, as summer approaches, they check prices and promotional leaflets, watch TV adverts and constantly discuss with friends the relaxation bliss of a carefree holiday that a few hundred euros can buy them.
Those who chose FT, marketed as a solid tour operator, travel agent, tourist agent, travel and tour charterer, were impressed to read that they cater for all travel and tourist requirements and promote all kinds of conveyances of tourists and travellers. Tragedy hit the fan when the company axed its tours via a text message just hours after insisting that people who had booked tours should pay in advance for extras such as optional excursions. It is no surprise that the sudden demise of the company has send shivers down the spines of prospective holiday makers, especially those who this summer took the special offer of a €199 per-person holiday to sun- kissed Corfu. Consider the pain and aggravation for pre-paid holiday makers who were unceremoniously told by SMS to cancel their tour at the beginning of August just days prior to departure. The police said that “a final decision has not yet been reached about whether or not criminal action will be taken”. An angry Joyce Borg said she had never seen any warning about FT. She was reported in the media as saying: “If there were warnings, they did not have the desired effect because many people were still buying their holidays from Fantasy Tours,” when asked why she had chosen Fantasy over so many other travel agents in Malta.
As always, the authorities are quick to close the barn doors after the horse has bolted, and the police say they have received more than 250 official complaints in respect of a total amount of €374,058. FT had five tours planned for August and failed to honour 12 decisions of the Consumer Claims Tribunal that were issued in favour of consumers against the company. Furthermore, since 2008, 150 complaints were registered with the Complaints and Conciliation Directorate. It is as well to remember that the official protector of the sans culottes is the Director General (Consumer Affairs) and it was this directorship who smelled the coffee and recently issued a Public Warning Statement identifying and giving information about services supplied in an unsatisfactory manner by FT owned by Golden Travel Club Limited (C 33107) with its registered Office at 2 Salvu Psaila Street, Birkirkara.
Well, as can be expected, enlightened lawyers will tell the aggrieved claimants that it is no good kicking a dead horse and, as always, the consumer must be vigilant and use the caveat emptor rule. This is all very right and proper, but why do we read so many leaflets from Meusec, the MFSA and Consumer Claims Tribunals telling us that, having joined the EU, they are the paid protectors of the hapless consumer? Where is the effective protection?
It was over two years before La Valette fund-holders in the famous mis-selling debacle on the part of the Bank of Valetta subsidiary read that the regulator had fined the licensee but had not mandated a refund. The investigation by the regulator only began after a collective action was instigated by some claimants who filed judicial letters when the bank refused liability and, at one particular AGM, the PN government’s appointed chairman (who had previously acted as the fund’s auditor) chided them for being “gamblers”.
Back to the FT case and one cannot but feel a sense of déjà vu that action taken by those responsible for overseeing the market operators was taken too late. It can be noted that there have been repeated indications of the shoddy service provided by FT in a number of decisions by the Consumer Claims Tribunal from which it results that the company had failed to abide by the obligations it had taken upon itself with regard to these services. The director-general of the Consumers Authority (MCCAA) has warned the public against a tour operator whose services were “supplied in an unsatisfactory manner”. He said that Golden Travel Club Ltd – which operates commercially under the trade name Fantasy Tours – was found to be in breach of its obligations. This begs the questions why FT’s licence was renewed for three years by the MTA when such warnings showed a red light on its surveillance radar?
Now comes the fight in court to obtain some sort of redress. It is true that the law on class action was only enacted last year, giving a group of complainants the chance of obtaining justice through a single court case rather then each individual having to take action separately. Unfortunately, remedies through our courts are a tortuous experience and it may take years for justice to be served and by then it is bye-bye to the pleasant donkey rides booked on the resplendent beaches of Santorini. It appears that the police are opening an investigation but it is early days for a decision as to whether they can officially indicate if they can proceed against any one in connection with the case.
A recent meeting was organised using the social media facilitator Facebook which is a bold attempt to collectively start a group action by the many who felt conned by the FT debacle, having paid in advance for a much anticipated holiday and then having been left in the lurch.
A “Frauded by Fantasy Tours” group, as well as a “Fantasy Tours Malta Creditors’ Group” and a ‘Gustizja ghal dawk migdumin mill – Fantasy Tours’ have been set up on Facebook and have all received hundreds of ‘Likes’.
One of the Facebook groups uploaded correspondence it received from the MTA which confirmed that reports from customers were being investigated by the Enforcement Unit within its Quality Assurance Directorate. But is this a question of too little too late? The positive news is that Flyaway Tours said they would honour any Flyaway Tours services booked through Fantasy Tours that official Flyaway Tours vouchers had issued.
Many asked what the chances for a refund were for such claimants if the company filed for bankruptcy. Are they classed as unsecured creditors or do they have to wait their turn if the appointed receiver first has to pay arrears of wages, FSS dues, VAT and other government charges? Regrettably, employees who expressed their disappointment on Facebook posts have actually been sacked. Do local banks have a special hypothec or privilege over the assets that will see them given priority in the rankings?
More will be revealed if and when the company goes into insolvent dissolution or creditors apply to court to appoint a special receiver. It is interesting to note that members of the public may, on payment of a fee, see the register kept at the MFSA and inspect the company’s file. This register shows the latest filed accounts, the shareholders and directors and the company secretary. But it was gruesome news to learn that Fantasy Tours’ operating licence had been renewed for three consecutive years even though the company had not paid its MTA fees amounting to nearly €4,000.
To conclude: this sad episode cannot be considered as just another casualty of the fragile economic situation of a number of small and medium enterprises that face a cash-flow problem and which, due to stiff competition from cheap tour services offered on many internet sites, struggle to survive the cruel facts of a risk-averse banking culture that has pulled the plugs on risky clients. Banks prefer to earn easy money by issuing credit card facilities to thousands of local merchants. This all means that, unless remedial action is taken by the PL government to ease banking credit and effectively tighten the screws on the myriad regulators, we will watch silently in awe as unemployment starts an uphill climb this winter. Readers should close their eyes to such woes and for a moment remember the bliss of a donkey ride on the sun-kissed beaches of Santorini...
The writer is a partner in audit and business advisory firm PKF
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