Lake Mac Ferry has hit a tsunami: the fledgling service announced on Facebook on Friday afternoon it will discontinue its service after this coming weekend.
The statement on the service's Facebook page posted on Friday said: "Due to ongoing crew shortages and significant increases in operating costs we are regrettably cancelling the Lake Mac Ferry service."
"From the bottom of our hearts we sincerely thank everyone who has travelled with us or supported us along our journey. As our phone is no longer manned please direct any enquiries to info@lakemacferry.com.au"
The company also operates Lake Macquarie Cruises and Nova Cruises.
At the end of September, the ferry service proclaimed it was increasing its services in Lake Macquarie, adding a regular stop at Valentine to its existing locations which included Speers Point, Booragul, Toronto, Belmont and Wangi Wangi.
But general manager Peter Hanrahan said on Friday in an interview with the Newcastle Herald that continuing rising costs and staff shortages had made the ferry service unviable.
The service will operate on its regular schedule through this weekend before shutting down.
Lake Macquarie Mayor Kay Fraser said she was "devastated" by the news and attributed the failure to the combined effects of the pandemic and wet weather over the last two years affecting visitor numbers on the ferry and throughout Lake Macquarie.
"I am gutted they've had to shut their doors," Fraser said. "We've seen a number of businesses fall over."
Hanrahan said the council had provided advertising and marketing, but no other financial assistance. It was costing the company about $2000 a day to run the service, including fuel, wages and berthing costs.
Fraser said it was not feasible for the council to offer economic assistance to Lake Mac Ferry.
"We are running a small deficit. We provide so many services. Our costs have escalated. Our projects are blowing out by 10- 20- 30 per cent," she said.
Cafe operators and retailers in the lakeside suburbs serviced by the ferry, particularly Belmont and Wangi Wangi, were pleased when the service began and they saw an increase in daytripper tourists.
"It's a real shame," Lake Macquarie Deputy Mayor, councillor Adam Shultz said. "In terms of the patronage, I believe it has been a huge success.
"Given the inflationary pressures across the economy, it has rendered the service unviable. Hopefully, it can return in the future.
"It's a been positive shot in the arm for the local tourist industry. We still have Lake Macquarie Cruises. It will be big loss. Hopefully in the future, once the economic situation sorts itself out, either the existing operator or new one can make it viable."
Hanrahan said the business would probably sell the ferry vessel and concentrate on its other successful services, which operate dinner cruises, sightseeing tours and whale watching trips.
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