As well as being a scam, this web site is also one of those sites which is trying to collect email addresses.
I bet if anyone puts their mail address in there, within a few days they will start getting emails offering sex aids, lottery wins, attractive ladies from russia, "free" holidays and all sorts of other rubbish.
btw When you click on the link above notice the tab at the top says "Turkey Holiday Voucher Claim" not Spain.
While there are all sorts of dodgy companies I think this particular one works by offering a VERY VERY basic holiday for free, but then charging lots of "extras".
As one of the "extras" is food it is very hard not to pay something extra. They also charge extra for local pick up points (of you have to make you own way to Portsmouth or wherever") plus extra for excurtions..
The link above ponts to their "Question and Answer" page, one of which is
Do I have to pay anything extra?
You are not obliged to pay for anything extra. We will make available to guests optional services such as a meal plan, peak season supplements, pick up supplements as well as a full excursion schedule for most days during the tour. These are all optional, and we find that a significant percentage of passengers find these convenient and add to the enjoyment of their holiday. These options also represent exceptional value for money
I think VHG is spot on. Nothing is given away. They have found a way to survive by charging where they can. If you have not actually entered a competition, you havent usually "won" anything. In this case it wont all be free, but I have, much to my surprise, found cases on the internet where people have enjoyed what they did get.
and why would you be given something for free that you never participated in? Why would a company just be giving holidays to strangers for free? Of course it is dodgy.