Two people on Deer Island watch as the Nova Star cruise ferry makes its way into Boston Harbor, Monday, May 12, 2014, for a christening ceremony. The Nova Star, a 528-foot cruise ferry that can carry more than 1200 passengers and 300 motor vehicles, will make daily roundtrip crossings between Yarmouth, Nova Scotia and Portsmouth, Maine.The Associated Press
The head of the ferry service that links Nova Scotia with Maine says the company is ending its first sailing season nearly three weeks earlier than planned, citing a lack of passengers.
Mark Amundsen, CEO of Nova Star Cruises, said Monday there was a significant drop in passenger bookings after the Thanksgiving weekend.
"We just saw that the numbers were performing well until then, and after that weekend it dropped off," Mr. Amundsen said in an interview from Portland, Me.
The last sailing date was originally scheduled for Nov. 2. The final trip this year is now an overnight sailing from Portland to Yarmouth, N.S., ending Oct. 14.
"We feel that not only this year, but next year, that will be the natural end to the season," Mr. Amundsen said.
About 650 passengers will be affected by the shortened season. Nova Star Cruises says they will be given full refunds, a free reservation for this season or a 50 per cent discount for the same booking next year.
About 20,000 passengers boarded the ferry in August, which met the company's target. In July, only 13,000 people used the service.
Last November, the company said it had hoped to reach 100,000 passengers by the end of this season. The total number for the season is currently at about 45,000.
"It's been a hard start at the beginning [of the season], but we can see by the August numbers that the demand is back," said Mr. Amundsen. "What the numbers really show is that it's taking time to rebuild the service. It's not going to be done overnight … We're cautiously optimistic by [the August] number."
The CEO said the company is hoping to reach about 25,000 passengers a month next season.
Aside from the drop in passenger bookings, Mr. Amundsen said the number of motor-coach tours in October was less than hoped for. He said Nova Star's late start in May didn't give tour companies enough time to make bookings.
The Nova Scotia government announced in July that the entire $21-million it had committed over seven years for the ferry had been spent by the operator only two months into the season.
Minister of Economic and Rural Development and Tourism Michel Samson has said the Liberal government wants to keep the service afloat, but he would not answer directly when asked if he is considering subsidizing Nova Star Cruises.
The previous NDP government promised last year to revive the service after killing it early in its mandate by eliminating an annual subsidy that amounted to $12-million in 2009.
During the election campaign that saw the NDP swept from power last October, the Liberals said they would ensure the "service remains sustainable for generations to come."
The party also pledged to end subsidies to large corporations and "bailouts to industries in decline."
In November, the Liberal government announced that it had signed a final deal to re-establish the service. The agreement included a $21-million forgivable loan, of which $10.5-million was supposed to go to startup costs in the first year of service and another $1.5-million for marketing.