Increasing fares and the resulting decrease in the number of passengers aboard ferries in British Columbia affects more than just the Crown corporation’s bottom line, according to a study conducted by the Union of BC Municipalities.
Ticket increases over the past decade have caused a significant drop in passengers, said the UBCM. Between 2003 and 2013, overall ridership fell from 25.7 million to 19.9 million – a drop of 23%. If fare increases had been in line with the rate of inflation, said the report, ridership would have grown by 19%.
Decreasing ridership has hurt B.C.’s gross domestic product to the tune of $2.3 billion: $1.8 billion directly related to expenditures that would have taken place by travellers and $1.5 billion in total value-added GDP.
In addition, passenger decreases have led to drops in the number of business incorporations and housing starts in coastal communities as population migration falls. Real estate prices have also been trending at lower rates than in the past.
“This study demonstrates a clear link between fare increases and declining ridership, and the cost of those fare increases to the provincial economy,” said UBCM president Rhona Martin.
On April 1, ferry tickets increased for both passengers and vehicles.
“As a first step towards reversing the trend in ridership, we are asking the province to restore fares and service to 2013 levels.”
In addition to restoring fares to those that were in place prior to this increase, the UBCM has called on the province to look at BC Ferries as an extension of the highway system – and to fund it accordingly.
“Our hope is that we can use this study to work with the province to develop a long-term strategy that will ensure the sustainability of the ferry system and coastal communities,” said Sidney Mayor Larry Cross.
