Over the past several years I’ve been getting a little grumpy every time I see a BC Ferries annual report.
Just for starters, the focus on profit is galling. I don’t care if it was the province or BC Ferries that mandated that one of our highway systems needed to be profitable, it’s still ridiculous to my way of thinking. It becomes particularly hypocritical when inland ferries are still offered free of cost, while the costs of those providing vital service to coastal communities are being jacked up at an alarming rate.
Just last week we heard concerns that tourism on the Gulf Islands was at extreme risk – the Denman-Hornby Ferry Advisory Committee says that the islands have almost completely lost day-trippers as a result of high fares – and residents may be soon be forced from the islands by skyrocketing ferry rates. And those fare increases, including an additional fuel surcharge not mentioned in most media stories, continued as BC Ferries Commissioner Gord Macatee announced a review of BC Ferries that will focus on fare increases.
For northern residents facing even steeper increases, BC Ferries is simply no longer a viable option – it’s cheaper in many cases to fly, and certainly far, far cheaper to drive all the way across the province and then backtrack down to the Lower Mainland. And the backbone of the northern tourism industry, the great circle route linking BC Ferries with rail and highway corridors of the north, is a tougher sell every year despite being one of Canada’s marquee tourism experiences.
Meanwhile consolidated net earnings at BC Ferries went up to $3.8 million from $3.4 million in the fiscal year ending March 31. BCFS reported lower than expected traffic levels, off-set by “cost containment measures” (not, presumably, at the executive salary level), and the $9.3 million sale of the building that formerly housed their corporate headquarters in Victoria.
“The year ahead is going to be a challenging one for the tourism business and for BC Ferries,” David Hahn said in a press release last week.
“We are planning to post a loss of approximately $20 million in fiscal 2012, which is attributed to continued low traffic volumes as well as our commitment to fund on-going vessel maintenance and repair, and to expand our safety management and training programs. Our strategy is to not repeat past practices of cutting capital expenditures and other important programs to the detriment of British Columbia’s ferry service.”
While I agree with the need to maintain the fleet, I’m having a really tough time reconciling all of this. In Prince Rupert we held steady in 2010, and in 2011 our first quarter hotel revenue numbers were our best in over a decade. Is it possible – just possible – that what Hahn really means is that BC Ferries is losing its market share? I’ve contended for a long time now that BC Ferries offers a poor showing as a result of misguided marketing effort and pricing itself out of the market.
In Prince Rupert we’ve turned a corner in tourism. The strength of our local product, and our strategic position, allowed us to survive the latter part of the last decade in comparatively good shape. We now seem to be on a steady increase. Perhaps Mr. Hahn should ponder this apparent contradiction.
Paint Prince Rupert
On another note, we’re seeing what I believe is a renewal in community pride and optimism here in Prince Rupert. I felt that at Seafest – as did many others I spoke with on the weekend. The outstanding “Paint Prince Rupert” initiative being spearheaded by Glen Saunders and the Hecate Strait Employment Development Society is an extremely visible example of this. This weekend they’re holding a paint-a-thon of sorts, in hopes of simultaneously tackling three projects.
If you’re interested in chipping in, e-mail Glen at glen@cowbay.bc.ca, or meet at the old Epicurian site this Saturday morning at nine a.m.