A recent rate increase and a coming fuel surcharge for Marine Atlantic�s ferry service will discourage tourist visits to Newfoundland and Labrador, says the Honourable Tom Hedderson, Minister of Tourism, Culture and Recreation.

"Our research clearly shows that cost and accessibility greatly influence people�s decision to visit a destination and whether they will make repeat visits," said Minister Hedderson, who met with the province�s federal cabinet minister, the Honourable Loyola Hearn, in St. John�s January 22. "With the high cost of fuel and its projected impact on travel, it is more important than ever that ferry costs are not seen to be prohibitive and that the service meets the expectations of travellers."

Effective January 1, 2007, Marine Atlantic Inc (MAI) imposed an increase for commercial and passenger vehicles of about 1.1 per cent. The company also plans to impose a fuel surcharge on passenger vehicles this coming April, similar to that already placed on commercial vehicles.

"While I was encouraged by Minister Hearn�s commitment to work for an improved ferry service over the long-term, to see a rate increase with no direct improvement in the quality of service is disappointing," said Minister Hedderson. "This rate increase and surcharge for passenger vehicles is coming on top of an already expensive service that Marine Atlantic is providing. This will have a negative impact on tourism in Newfoundland and Labrador, in particular the rural areas where vehicle traffic is so vital to the industry."

Transportation and Works Minister the Honourable John Hickey has similar concerns for his federal counterpart, the Honourable Lawrence Cannon, Minister of Transportation, Infrastructure and Communities. "I urge Minister Cannon to reconsider the new rate increase and extend the rate freeze until a comprehensive strategy for the future of Marine Atlantic has been released," said Minister Hickey.

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