DFDS's decision to scrap its loss-making Newcastle-Norway ferry service has been described as ‘a disaster’ for tourism.
The service, which operates to Bergen, Haugesund and Stavanger, will cease on 1 September, leaving DFDS to concentrate on developing its Newcastle-Holland and Harwich-Denmark operations.
DFDS Seaways managing director, John Crummie, explained: 'The result in 2007 fell well short of expectation and as reported in last week's DFDS Quarter 1 2008 results, the current financial development has fallen below the level required to continue operating the service.
'Furthermore, dramatically increasing oil prices, downward price pressure from over capacity in the travel market place and the current economic slowdown are burdening the service.
'Consequently, we have taken the difficult decision to close the service from 1 September after the summer season.'
The BBC reports tourism officials on Tyneside believe the region will lose £10m in revenue from incoming visitors, and quotes Bergen director of tourism Ole Warberg as saying: 'If this route stops it will be a total disaster for Bergen and the Fjord region.'
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