A modern tram route, which connects Velez resort with Torre Del Mar and is one of the newest attractions of Velez-Malaga, is being closed now. This decision was made by the municipal authorities after they have not managed to cover the expenses for establishing the commuter route in 2011 in one of the most successful tourist regions of Spain - Malaga.
The tram route from Velez-Malaga to Torre del Mar is located 30 kilometers east of Malaga on the Costa del Sol. The total route length is 4.6 kilometers. The grand opening of the tram line was held on 11 October 2006. For its construction were spent 18 million Euros. Construction of the road was funded by the EU. It was supposed that in future Velez tram route will be connected with a third metro line in Malaga. However, the financial crisis forced the city administration to suspend the project.
During the 5 years the tram route was operated by the Travelsa company. Despite the creativity of the idea, the company has not succeeded in turning the tram in a profitable enterprise. Already in 2007 the line suffered from significant decrease in passenger traffic, which led to the total losses of $ 700000.
At present the debt of the municipal authorities in 2011 exceeds 1.6 million Euros. If the tram line will continue to operate, the debt of the city authorities to Travelsa can grow to 2.6 million Euros in 2012. According to the mayor of Velez-Malaga, to pay the debt the city treasury will have been forced to send about 9% of the annual budget. But Velez authorities refused from the project. At the same time the mayor of Velez-Malaga accused the government of Andalusia in refusing to subsidize municipal debts.
The authorities plan to compensate closure of the tram line by additional bus routes.
Torre Del Mar resort is one of the oldest on the Costa del Sol. It was founded in the era of the Phoenicians. Its architecture can been see traces of the Moorish and Roman cultures.