Ferry travel to Estonia declining after strong start to the year

Operators reluctant to tie future to possible alcohol tax increases

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This year is turning into a slight disappointment for ferry operators plying the route between Finland and Estonia.
      During the first quarter of 2005, hopes were high, as passenger volumes grew 15% from the previous year.
      Ferry operator Tallink estimated earlier that passenger throughput would reach the all-time record of 6.4 million ferry crossings.
      However, during the summer this figure was lowered to 6.2 million, and now it is expected to be just under 6.1 million.
     
During the peak season in the summer, the passenger carriers posted losses in the traffic, and even the October passenger volumes are down on 2004 figures. According to the Finnish Maritime Association, 4.7 million ferry passages were made across the Gulf of Finland to Estonia between January and September this year, which is only 1.6% more than last year.
      Ferry operators admit that there has been a change in conditions in the passenger traffic and that the industry is no longer growing rapidly.
      Despite the changes, the passenger carriers have reached their targets for this year: for example Eckerö Line, Nordic Jet Line, Silja Line, Tallink, and Viking Line have reported an increase in passenger volumes on the back of the increased number of travellers in the beginning of this year.
      Linda Line had technical problems during the peak season and has suffered 10% passenger losses.
     
Minister of Social Services Liisa Hyssälä (Centre) suggested on Wednesday a rise in alcohol tax might be in the offing.
      If it materialises, this could see the return of liquor tourism to Estonia. However, the ferry operators are reluctant to rely on cheap booze and "booze cruising" as the only draw in the future. Minister Hyssälä's suggested tax rises are also so small by comparison with the cuts made earlier that they are expected to have little if any impact on the ferry business as yet.
      Passenger carriers believe that any possible changes in alcohol taxation in Sweden or in Estonia will have more of an effect on ferry travel in the future than will Finland's alcohol tax policy.


Previously in HS International Edition:
  Finnish ferry operators post heavy losses as margins tighten (8.6.2005)

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