Nova Star Cruises spending less, but buying more from Nova Scotia
Total spending down by more than $7M compared to last season
Nova Star Cruises is spending less while it buys more from Nova Scotia, according to the companies recent economic report.
The monthly local benefits report covers spending from Jan. 1 to June 30.
Last year the company spent $14,336,693 in that time frame. In 2015, its total spending was down to $7,305,023. That includes costs like its ship lease payment, taxes, staffing costs and vendor payments.
The company says it had to spend more on start-up and set-up costs during the 2014 season.
"The numbers show we are moving in the right direction...We've taken every effort to operate more efficiently," wrote Mark Amundsen, president and CEO of Nova Star Cruises, in an email.
"The big picture is important here. Nova Star Cruises will operate within the financial terms of its agreement with the province and the people of Nova Scotia. We will meet our target of operating a great service with the help of an investment from the province of $13 million or less."
While overall spending is down, the company has spent close to $148,000 more in Nova Scotia this year. Its local spending now tips over the $1 million mark.
That money covers staff, fuel, food, security, supplies and services.
"Our Nova Scotia spend will look better and better as the season goes on and gets busier, and we require more goods and services from Nova Scotian companies," said Amundsen.
More vendors
The company is working with 115 Nova Scotia vendors this year, up from 80 in its inaugural season.
Most of the passengers in June 2015 boarded on the U.S. side. Only 2,983 of the 8,535 passengers who boarded last month got on in Yarmouth.
The company says its marketing plan is to attract people to the province, not necessarily entice people from Nova Scotia.
"Our marketing efforts are primarily focused on bringing U.S. passengers to Nova Scotia, resulting in tourism revenue for the province. We're pleased to see that the passenger numbers reflect that our marketing strategy is working," said Amundsen.
Nova Star Cruises is operating on a one-year contract with the government. Transportation Minister Geoff MacLellan said if the company doesn't deliver the numbers, the government will seek another company to operate a ferry service.
In February, the provincial government gave the ferry operator $13 million to help with this year's ferry operations. By the end of April, Nova Star Cruises had used $6.1 million of the subsidy.
Nova Star Cruises says it has not drawn any further payments from the government of Nova Scotia.
Amundsen says the ferry company is still on track to meet its goal of 80,000 passengers this season.
In 2014, taxpayers spent $28.5 million on the Nova Star, including burning through a $21-million, seven-year subsidy during the first season.