Jura Passenger Ferry Service

The Social, Economic and Environmental Impacts of the Ferry Service

A Mid-Pilot Review – Summary* 2008-2009


Introduction

After a long period of investigation and assessment, the Jura Passenger Ferry Service commenced in June 2008 as a 3-year Pilot. The ferry service provides, for the first time, a summer-season direct service between Jura and the mainland and saves Jura residents and visitors to the island coming without a vehicle, the circuitous and time-consuming route via Islay and Kennacraig. The service is provided by a Rigid Inflatable Boat (RIB) operated by a contractor based on Jura.

In its first season (11 June to 24 September 2008) the service carried 1,761 passengers, of which 14% were “Jurachs” (residents). In season 2009 (9 April to 31 September) passenger numbers increased to 2,688, with resident’s use increasing to 23%
A number of distinct customer groups have emerged; business visitors, holiday home owners visiting more frequently, walkers and cyclists, “Whisky Trail” tourists from North America and Scandinavia and shooting party tourists as well as the more typical visitor to the area
Improved access to mainland services and opportunities becomes more apparent.

Social Impact

Reduces the sense of isolation
Direct connection with mainland Argyll which goes beyond the practical benefits of access to mainland health services, shops, etc
Return home in the same day (now possible for the first time)
Strengthening of the community
Increasing numbers of holiday home owners who are visiting more often and making the island busier, more vibrant and more economically active and sustainable.

The service is thus redressing a common problem in West Coast communities – often 50% of homes in the community lying empty for most of the year with the consequent negative drag on community activity.

Economic Impact

More viable and sustainable community, providing business and employment opportunities
Distillery Shop estimates that most day visitors on the ferry visit the shop and spend an average of £30 per person
Jura Hotel similarly estimates that most day visitors come into the hotel and purchase at least a coffee, with some having lunch or staying overnight
Antlers restaurant reports high footfall by day visitors and has thus employed two part-time staff in high season
Cycle hire business has quantified a 50% increase in business due to ferry visitors.
The three Bed and Breakfast establishments report they have increased occupancy
Visitscotland research data identifies that UK visitors spend on average £63.60 per night while on holiday. Although many ferry visitors are day-only, it is considered that this is a sufficiently accurate benchmark for this exercise, with the ferry fare equating roughly to the cost of accommodation. This avoids the danger of double-counting the impact. This gives an economic impact on the Isle of Jura in the region of £130,410 per annum due to the ferry service after deducting the proportion of resident passengers
In Tayvallich the community shop reports additional sales due to passengers awaiting or alighting from the ferry. This has benefited their community buy-out initiative
Some potential new businesses have been identified as a result of the increased visitor numbers, with a taxi service and additional B&Bs currently under consideration.

Environmental Impact

Environmental education and awareness opportunities; local primary school has used the ferry for just this purpose
Many of the ferry users are walkers and cyclists so that the carbon footprint of the typical ferry user is much smaller than average.

Financial Performance

The ferry service requires an ongoing subsidy in order to operate, as do all transport schemes. This subsidy, on the evidence available to date, is likely to be in the range of £40,000 to £55,000. Even at the upper level, the return on this investment, in terms of the economic activity generated on Jura, is a factor of 2.17 and could be as high as 2.89. This means that for every £1 spent on the service a return of nearly £3 is possible. This makes the ferry service a powerful lever for economic activity in a fragile rural community.

In addition to the social impact, the ferry service has transformed the economy of the island and this would be lost if the service discontinued after the pilot.

Summary

The pilot ferry service has achieved significant impacts on the community in better access to services, reduced sense of isolation and increased use of holiday homes. It has also levered a significant economic return which is providing direct income and business and employment opportunities. A full Social Return On Investment analysis, quantifying the social, economic and environmental impacts, is likely to identify a total return that is much higher than the purely economic return shown in 6 above. This means that for every £ invested in the ferry service there is a return of many times that investment.

At this stage in the pilot, with awareness still growing and the impact of marketing still to be fully realised, the ferry service is already delivering important returns for the community in social and economic terms.