Majorcan hoteliers claim that false compensation claims from British tourists cost them about 50 million euros a year. This sounds like a huge sum to me, but if the figure is accurate, then I can understand their deep concern over this compensation scam. During the Bulletin breakfast last week at the Palma convention centre, British ambassador to Spain, Simon Manley, when questioned by local hoteliers, said making a false compensation claim was an offence and it was a matter for the British Ministry of Justice. The Association of British Travel Agents has also said that they will be attempting to tackle the issue in Britain.
It appears that a very small number of tourists are making a false complaint and they are paid the necessary compensation which pays for their holiday. Apart from this practice being illegal it will also hit those tourists who make legitimate claims. Local hoteliers are on the warpath and want the British government to take action. Consul General Lloyd Milen had a meeting with local hoteliers to discuss the issue about a month ago. It is always going to be difficult to outlaw false claims for compensation. Each case would have to be studied and investigated which would prove costly. Probably one of the easiest ways to help outlaw the practice would be to publicise those people who have been prosecuted for making a false claim. It has helped to reduce benefit fraud and it might just be the solution.