Subsidized Yarmouth ferry to Maine still pays off: report

A new report focused on the Yarmouth to Bar Harbour Ferry shows there is a strong economic benefit to keeping the seasonal service running between Nova Scotian and Maine.

The economic impact study analyzed two-years of ferry crossings during the 2023 and 2024 sailing seasons, which run between May and October.

While the report finds the government sees a net loss in funding and operating the ferry services, it concludes however, there is a greater economic benefit for the entire province.

“The report clearly shows that the ferry service is a good benefit for Nova Scotians and it was important for us to see that report, to make sure there wasn’t any new or additional information that we needed to take into consideration,” said Fred Tilley, the province’s minister of public works.

In 2024, the province spent $21.3 million of taxpayer’s money to fund the high-speed CAT ferry that travels from Yarmouth to Bar Harbor, Maine and will again for the 2026 season.

The report completed by Halifax based consultant group 21FSP research, shows that revenue generated annually from the ferry service brings in around $40 million in economic activity for the region.

As for jobs, the report suggests the ferry service and the tourism it brings, supports anywhere from 270 to 440 full-time jobs and generates between $12.1 to $18.5 million in labour revenue.

In terms of the ferry operations, it directly supports 79 full-time jobs, although Tilley confirms staffing onboard the vessel is All-American.

Tilley believes its in the provinces best interests to continue to subsize the ferry service, even at $21 million annually. He feels it’s a good deal for Nova Scotians and the provincial economy.

“This benefits not just the Yarmouth area,” said Tilley. “But we see economic spinoffs for the entire province.”

Yarmouth mayor Pam Mood said the report reinforces what they already knew.

“Tourism is an important industry to us, almost as equal to our fishery which is huge,” said Mood. “It’s good to finally get that information out there and we can now move on.”

Bay Ferry’s said the number of Canadian using the service dropped in 2025 but ridership for Americans remained on par to previous years.

Nova Scotia-Maine ferry service ridership per-year:

• 2025 - 39,745 passengers
• 2024 - 49,299 passengers
• 2023 - 38,399 passengers
• 2022 - 36,003 passengers

In a statement to CTV News Bay Ferries President and CEO Mark Wilson said they welcome the final economic impact report.

“The report confirms the strong economic benefit to Nova Scotia that this ferry service delivers,” said Wilson. “We look forward to advancing long term solutions that will build on this solid foundation and further enhance the benefits of this important service to Nova Scotia.”

Nova Scotia and Bay Ferries Limited’s 10-year contract to operate the ferry service is set to expire at the end of the 2026 season. Mood said there is a sense of urgency to get a new contract in place to ensure businesses who operate and depend on ferry traffic can make future business plans.

“We’re looking for a long-term deal on the ferry which actually increases economics astronomically, because folks are waiting,” said Mood.

Mood said the ferry service is vital and without it the economy suffers greatly. She pointed back to 2009 when the government pulled it subsidy for the service and forced Bay Ferries to cancel crossings that year.

“It’s day-and-night when their ferry is here,” said Mood. “Go back to 2009, when a very bad decision was made. We looked like tumbleweed row.”

The province paid $250,000 for the report, which Tilley believes was money well-spent and assures the province the ferry service is an economic benefit.

“We’re committed to the 2026 season,” said Tilley. “And now that we have this report and all the information I think we are going to move really quickly to figure out the future of our service.”

Tilley said there’s no deadline to agree on a new contract, but he hopes to have a deal in place by the summer.

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