A closer look at the scathing report on BC Ferries' route cuts

A lesson in how cuts sometimes lead to even bigger revenue losses

Last summer, the ferry ride from Bella Coola to Port Hardy went from a 13-hour direct route on a middle-aged but comfortable ship (the now decommissioned Queen of Chilliwack) to a 16-hour, two-part journey involving a two-hour layover and two different ferries, one of them an almost-new vessel, similar in size to the Queen of Chilliwack, and the other, an elderly ship that also happens to be the smallest in the fleet.

According to a new economic analysis released Monday, the results have been disastrous. Commissioned by the West Chilcotin Tourism Association, it states that “tax revenue losses to all levels of government exceed the total estimated operational savings of $725,000 per year, which was in part the rationale for service reductions.” In addition, almost 20 per cent of affected businesses surveyed said that “foreclosure is a near-term possibility” if the service isn’t improved immediately.

Pressing the Nimpkish, the former offseason ferry, into year-round service has been controversial due to its limited space and lack of onboard comforts. Destination British Columbia, the provincial government’s tourism agency, notes on its website that the ship has “limited amenities” and suggests that travellers “may wish to purchase food for the journey prior to boarding,” while the BC Ferries site is more blunt in its assessment—amenities are listed as “none.”

Implementation of cuts done without proper analysis
According to the vice president of the West Chilcotin Tourism Association, which commissioned the report, “the government did not undertake a single economic study before making these reckless cuts.” Petrus Rykes said in a press release Monday that “this is the first comprehensive review of the impact these changes have had, and it confirms our worst fears. The government has managed to cost itself money, not save it.”

In March of this year, in an effort to stem intense opposition, the provincial government deployed Naomi Yamamoto, minister of state for small business, to meet locals and even sent Transportation Minister Todd Stone last summer, family in tow, to test out the new service. His assessment? “The little Nimpkish ferry, the little 16-car ferry which now serves Bella Bella to Bella Coola, is getting the job done,” he told the B.C. legislature in October.

Cuts anger tourism companies
In an email to Stone, Bill Knowlton, vice-president of marketing and sales for Jonview Canada (one of Canada’s largest travel wholesalers), criticized the decision to cut service. “We will not even contemplate subjecting our international visitors to the proposed new schedule,” he said. Jonview coordinates with overseas operators to bring more than 100,000 tourists to B.C. each year and, along with a consortium of six of the largest German tour operators, has stopped selling the Discovery Coast in any of their packages.

Increasing marketing while reducing capacity
In March of this year, facing growing opposition to the cuts, the provincial government announced that Destination British Columbia would receive an additional $100,000 to market the circle tours and would “explore the possibility” of refurbishing the Nimpkish to “improve the comfort of passengers including food and refreshments.”

However, when the new circle route started in April, drinkable water availability was the only improvement to the Nimpkish. On the one hand, the provincial government is decreasing capacity by approximately 36 per cent; on the other, it is increasing promotion of the route.

“Fix this problem fast or many businesses will be forced to close.”
Despite including comments like the one above, the report’s authors end their analysis on a positive note, maintaining that “the service can be modified easily” and “the only requirements are a positive vision and a focussed plan for the region’s tourism economy.”