Newfoundland and Labrador Product Development Strategy

- 58 -The Department of Tourism, Culture and Recreation’s Strategic Planning and Policy Divisionhas prepared a number of in-depth reports and assessments of the situation and possiblesolutions and these have been reviewed in the preparation of this study. We have notattempted to revisit all the issues and analysis here but simply to identify key issues andconcerns.o The ferry service is a critical link in the Trans Canada Highway system toNewfoundland and Labrador, not only for visitors but also for residents and for goodsand services. Strike threats and other labour unrest in the past few years have hadsignificant negative impacts on the tourism industry. The recent ruling by the CanadaIndustrial Relations Board (CIRB) that “there is to be no reduction in the level ofMarine Atlantic Inc.’s regular ferry service between Newfoundland and Nova Scotiaat any given time of year” (November 27, 2003) is seen as a very positive step.However, there are some questions that remain to be addressed on the impacts andinterpretation of this ruling.o Cost of the ferry service has been identified by many in the tourism industry as aconcern. A rate increase of from 5% - 10% was announced effective January 1, 2004,bringing increases since 2000 to from 23% - 37%. Transport Canada’s NationalMarine Policy (1995) mandated Marine Atlantic to reduce costs and increaseefficiency; with the subsidy provided kept at base levels, cost recovery will have toincrease to meet increased operating costs. There are also concerns that costs related toinsurance, security and safety (post 9-11) will continue to increase operating costs.o Customer service on Marine Atlantic is viewed asvery poor by many in the tourism industry.Marine Atlantic reports that their surveys indicate95% of customers are satisfied. The 1997Provincial Exit Survey draws differentconclusions, as did our research with touroperators (See box) and focus groups with“Awful schedules, pooraccommodation and food”“Dreadful journey”Comments from Tour Operatorson the Marine Atlantic Ferryvisitors. The focus group report indicated “transportation to and from the provincewas an area of dissatisfaction for some participants. Some described the ferry as dirty,problematic and too expensive and talked about long line ups and difficulty securingreservations.”The 1997 Exit Survey queried visitors about 12 different service categories – only 3service categories had more than ½ of the respondents indicating the service wasexcellent (making reservations, availability of trip planning information andticketing/boarding); onboard customer service elements were rated much more poorly,with four categories (availability of accommodation, of recreational activities, overallcost and food quality) receiving excellent ratings by fewer than 20% of respondents.o The capacity and scheduling of the ferry service is also a significant concern. MarineAtlantic operated a high speed catamaran on the North Sydney – Port aux Basquesroute in 2000 and increased capacity (up by some 35% over the previous years) duringTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study