Accessibility to the Province Essential for Thriving Economy

Minister Echoes Concerns Raised Over Marine Atlantic Rate Increases

The Provincial Government today reiterated the concerns expressed by the tourism industry and the business community over rate hikes announced by Marine Atlantic. The ferry operator announced a three per cent increase over 2013 rates.

“Marine Atlantic provides an essential transportation link to our province, and continuous rate increases are a deterrent to the travelling public. The increases also impact commercial users who bring goods and services to the province which, in turn, also impacts our residents who purchase these goods. We are concerned that the increases could negatively impact some businesses and present challenges to remain competitive in national and international markets. While it may be argued that a rate increase in and of itself may not appear to have a significant adverse impact, this is the third year of cumulative Marine Atlantic rate increases.”
- The Honourable Terry French, Minister of Tourism, Culture and Recreation and Minister of Innovation, Business and Rural Development

Marine Atlantic passenger traffic has been declining over the past five years, with annual declines of approximately 3.4 per cent. This is of great concern to the Provincial Government and the tourism industry, as non-resident automobile travellers are an important segment of the tourism market.

“We support Marine Atlantic in the actions they have taken in the recent past to improve services, including two new ferries and enhanced customer service. However, it is important the Federal Government continues to provide adequate funding for Marine Atlantic so that the increase in cost of operations is not passed on to the travelling public.”
- Minister French

The Provincial Government will continue to closely monitor rates, fuel surcharges, security fees, reservations and passenger traffic to determine the overall impacts of increased fares for travellers using this method of transportation.

Through sound fiscal management and responsible decisions, the Government of Newfoundland and Labrador is strengthening the business environment, encouraging the development of innovative industries and building a vibrant economy.

QUICK FACTS

• Marine Atlantic announced a three per cent increase over the 2013 rate schedule.
• The Provincial Government echoes the concerns expressed by the tourism industry and the business community over the rate hike.
• The province’s growing tourism industry relies heavily on an affordable and reliable ferry service, as the auto tourism market represents 21 per cent of non-resident travellers.

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2014 02 12                                 3:15 p.m.