Nova Scotia’s $20-million subsidy for Maine ferry is a good value, says new study

A long-awaited economic study of the Nova Scotia to Maine ferry service says the province’s annual subsidy of about $20 million is worth the cost.

The province announced in 2022 that it would study the economic benefits of the ferry service and mandated consulting company 21FSP Advisory the following year to produce a report.

The report says almost every ferry in the world receives government subsidies and the cost to the province for the service linking Yarmouth, N.S., and Bar Harbor, Maine, is in line with similar routes elsewhere in the world.

It says U.S. tourists using the vehicle and passenger ferry known as The Cat spend considerably more than visitors arriving by air or road.

The ferry generates between $31 million and $42 million a year in gross domestic product, depending on how it’s measured, and also contributes between $2.7 million and $1.7 million to provincial revenue.

The study says the ferry supports tourism throughout the entire province, not just in the Yarmouth area.