Mackinac Island is moving toward expanded control over ferry pricing after Michigan lawmakers approved legislation that would give the tourist destination authority over not only ferry fares but also parking and baggage handling, with Gov. Gretchen Whitmer now the next stop in the process. The Michigan House approved Senate Bill 304 on Thursday, passing it 91-16, with all opposition coming from Republicans.
Under the bill, Mackinac Island would receive authority over “all aspects of ferry services” tied to the island, including the prices for fares, parking and baggage handling. Because the measure amends the island’s charter, it would take effect only if a majority of Mackinac Island residents approve the change.
State Sen. John Damoose, R-Harbor Springs, defended the vote in a social media post, calling the effort “a tough fight” and saying that lawmakers sometimes have to take “a hard stance and take a few arrows to do what is right.” Damoose added that he was not opposed to privately owned ferries, but that they “can only exist with oversight and regulation.” He said the state legislature acted so Mackinac Island could update its charter to maintain such oversight after changes tied to ownership of the ferries and docks.
The bill drew opposition from communities on the mainland. St. Ignace and Mackinaw City opposed the measure, arguing that it would give Mackinac Island power to control parking rates in their municipalities. Mackinaw City council was expected to vote Thursday night on a resolution that would impose a $200,000 fee on each ferry operator to recoup expenses such as policing and road maintenance linked to tourism. Hoffman Marine officials spoke out against the fees, according to MLive.
The ferry-rate fight is also unfolding against a backdrop of ongoing litigation. The issue centers on the question of whether Hoffman Marine’s ownership of the island’s ferry lines amounts to a monopoly. Mackinac Island contends it should be able to set the rates, while Hoffman Marine argues the city cannot unilaterally declare a monopoly.
Hoffman Marine bought the two ferry services that transport tourists to Mackinac Island — Shepler’s Inc. and Arnold Transit — in 2004. Since then, the company has raised rates from $36 to as high as $39, according to the reporting. A federal appeals court allowed the island to control ferry ticket prices, but not parking, while the lawsuit continues. The ferry contract is set to expire next summer, and Hoffman Marine has threatened to shut down the ferries unless a new contract is negotiated.
In a statement, Hoffman Marine said it was “disappointed” by the lawmakers’ actions. It said its ticket prices reflect increased fuel, labor, maintenance and infrastructure expenses, while maintaining a commitment to accessibility. The company also argued that a regulatory approach limiting operational flexibility risks undermining the investments required for safe, efficient and high-quality service.
Support for Mackinac Island’s approach comes as the island’s tourism economy remains heavily dependent on ferry access. This week, it was named the top summer travel destination for the fourth consecutive year by USA TODAY readers, according to the reporting accompanying the legislative update.