An eight per cent increase in passenger numbers coupled with an eight per cent decrease in passenger fares in real terms shows the Hodgman Liberal Government’s plan for the Spirit of Tasmania ferries is delivering results already.
The TT-Line 2014-15 Annual Report, which I will be pleased to table in Parliament today, highlights how the Spirits are helping to inject half a billion dollars a year into Tasmania’s economy.
The Liberal Government went to the election with a plan to grow passenger numbers and put downward pressure on average fares, and clearly it is working.
Covering the 12 months to the end of June, the report comes before the completion of the refurbishment of the two ships, but includes the writing off of much of the project costs.
On the back of its growing passenger numbers, which increased from 357,619 to 384,501, TT-Line has, however, recorded an operational profit of $17.5 million, compared to $11.6 million the previous year.
The number of day sailing passengers increased by 20 per cent due to both an increase in day sailings and a reduction in average fares.
This is further evidence that our focus on building passenger numbers through more day sailings and an improved day sailing experience is the right approach.
The Government has a vision of growing visitor numbers to Tasmania to 1.5 million a year by 2020 and we are committed to the Spirits playing a major role in achieving this, particularly because of their importance to regional tourism.
TT-Line’s Annual Report shows that passengers travelling to Tasmania spent about $440 million in the State last year, while the company itself contributes more than $60 million to the local economy through wages, goods and services.
The refurbishments, meanwhile, have also been good news for the economy, with around 200 Tasmanians and 24 local businesses working on the project.
The results of their great work are already being seen in the current financial year with significant increases in forward bookings.
Continuing its important role in meeting the Tasmanian freight task, TT-Line shipped a record 102,309 twenty-foot equivalent units (TEUs), up from 98,511.
This increase also reflects a more confident Tasmanian economy that has turned the corner under a majority Liberal Government.
Clearly, this report shows that TT-Line is not only delivering on the Government’s plan to increase passengers and lower average fares, it is also in a stronger position.
Rene Hidding, Minister for Infrastructure
