Changing sides: The Economic and Social Impact of the Ferry Services in the Netherlands in 2015-2016

Background The report “Hoe ver is de overkant?” (Oostinjen, 2004) and “Verdiensten van veerdiensten” (Den Hartogh, 2010) show that the ferry services, that operate throughout the whole year, has a large social and substantial economic impact for the Netherlands. However, both reports state that a stable financial base is lacking, as is a durable policy regarding ferry services. The report of Oostinjen in combination with an amendment of Member of Parliament Van der Staaij (SGP) resulted in a ten million euro fund for the freshwater ferries in 2006, but it was only a one-time intervention and not a stable solution for the problems of the ferry services. In 2004 the ferry services faced an operating deficit of € 18 million. The report of 2010 showed that both the social and economic impact of ferry services has increased, despite the fact that the ferry services still face an operating deficit (€ 6 million). This research will serve as an update of these two researched and focuses on the fresh water ferry services that are operated the whole year. In addition, the recreational and saltwater ferry services have been investigated, just like the impact of ferry services on the environment. Economic and social impact The ferry service sector consists of 313 ferry services, which is an increase of 28% compared to 2010. The ferry services can be categorized in multiple different ways. This research distinguished three different ferry services: utilitarian, recreational and saltwater ferry services. The 94 utilitarian ferry services are operated throughout the whole year and mostly transfer people with a commuter or scholar travel motive. These ferry services have a significant economic impact with a turnover of 33,6 million and 591 FTE. Annually, 46,2 million people have been transferred that is an increase of 13,8 million compared to 2010. Despite the growth in the number of transferred people the operating deficit of the ferry services has stayed more or less the same. The social value of utilitarian ferry services are even higher. To test the social impact a hypothetical market is created in which ferry services have been terminated what will have an impact on the users of ferry services. A user survey has been used to map the impacts for the user and have been quantified by examining the value a person should be compensated with, the Willingness to Accept (WTA), since it can’t use a ferry service anymore. In addition social effects, like noise pollution and traffic injuries, and environmental effects have been quantified. As a result both the social and economic value of the utilitarian ferry services have increased compared to the reports of 2010 and 2004. The 113 recreational ferry services transfer almost 2,2 million people per year. Jointly the recreational ferry services have a turnover of almost € 4 million. The recreational ferry services are operated by 101,2 FTEs and 842 volunteers. Working with volunteers is key for recreational ferry services since most of the ferry services can’t afford to operate the ferry with employed workers. Almost half of all the ferry services already require a subsidy of the local or provincial government. Despite the absence of a stable financial base the recreational ferry services represent a significant social value. The social impact of the recreational ferry services is obtained by the Willingness to Pay, the provided subsidy and the expenses of users which can be ascribed to the ferry services. The social impact of the recreational ferry services is substantial. The saltwater ferry services to the Wadden Islands have a significant economic impact, which is assessed by the same aspects: turnover and employment. The social impact is only qualified, but since the ferry services are the only connections with the mainland the impact is evident. 3 Sustainability The existence of ferry services prevents a lot of detour kilometers for many people, which saves time and money but also a reduction of the emissions of road traffic. In order to prevent the emissions of road traffic vessels are used which also emits. The external cost of the emissions of ferry services is set at € 10.9 million. The preservation of the environment is not only looked at because of forthcoming legislation. Sustainability is also an issue for the ferry owners themselves. There is a distinction between economic and environmental sustainability. Both the utilitarian a recreational show initiatives to make the ferry more sustainable in an environmental way. Recommendations Sustainability is one of the major issues in this research. The sector could capitalize on future laws and legislation and has a clear view on developments to reduce emissions. Investing in sustainable technologies could lead to an improved image of the sector that will lead to financial sustainability. Also on policy level sustainability is needed. The ferry services have a significant impact for the Netherlands, but only two provinces has a long term policy on ferry services. A durable policy, which can be used by all ferry services with a significant impact is advised.