False food-poisoning claims 'could kill package holidays'

Package holidays could come to an end following a huge increase in the number of false food poisoning claims by British tourists, the travel agents trade body Abta warned.

According to the group, the past few years has seen an increase in the number of insurance claims being made by British tourists, despite rates of sickness reported in resorts remaining stable.

Since 2013, the number of complaints made through claims management firms has risen 500 per cent to reach the "tens of thousands", says the Daily Telegraph.

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A large number of the claims are from all-inclusive package holiday, where the holidaymaker argues that "because they only ate in their hotel, that must have been the source of their alleged food poisoning", says the BBC.

TUI, which owns Thomson as well as package holiday operator First Choice, has seen a 15-fold rise in claims in the past year alone.

Average claims are for around £2,000, says the Telegraph, but they can go as high a £5,000.

Chris Mottershead, managing director of Thomas Cook, said the problem had the potential to "put hoteliers out of business" and could lead to British travellers being banned from resorts.

Abta said that holidaymakers not "aware of the consequences" of making false claims could face prison either at home or abroad.

It has launched a campaign called Stop Sickness Scams to highlight the issue and called on the government to close a "loophole" relating to claims firms.

It adds that since the introduction of new rules to stem false whiplash accident claims, which limit the fees claims firms can charge in the UK, the companies have turned their attention overseas, where the limit doesn't apply.

Mark Tanzer, chief executive of Abta, said: "The government must urgently address this issue. The legal loophole that is allowing firms to unduly profit from these claims must be closed."