The cost of getting to Mackinac Island—the car-free tourist haven accessible only by boat or plane—has become a lightning rod issue in Lansing, as state lawmakers debate whether to step in and regulate the ferry system that now falls under a single private owner.
For decades, ferry service to Mackinac Island was a competitive two-player game: Shepler’s Ferry and the Star Line (recently renamed the Mackinac Island Ferry Company). But in June 2024, the Hoffmann Family of Companies, which acquired Shepler’s in 2022, completed its purchase of Star Line, consolidating control of all regularly scheduled ferry service to and from the island.
That move has raised alarms from island officials, lawmakers, and longtime observers who say the monopoly has resulted in soaring fares, parking fees, and add-on charges that could hurt both residents and the region’s $100-million-plus tourism economy.
Round-trip fares have jumped 40% in recent years—from $27 in 2020 to $38 today—with some “enhanced” tickets now selling for $50. Overnight parking in Mackinaw City or St. Ignace—previously as low as $5—has seen similarly steep increases, with weekend rates climbing as high as $75.
State Sen. Joe Bellino, R-Monroe, described the current pricing as excessive, telling colleagues during a June 12 hearing, “I felt like I bent over and grabbed my ankles.”
At the center of the storm is Senate Bill 304, sponsored by Sen. John Damoose, R-Harbor Springs. The bill would amend the 1899 charter that governs the city of Mackinac Island to allow the island council greater regulatory authority over ferry-related fees, including charges for parking, baggage, and early boarding. Under current agreements, the city can already intervene on fares if no competition exists, but this legislation would expand that power.
Damoose, whose district includes the island, argues the state must act now that “one private company owns all of the ferries and all of the ferry docks.” With the majority of the island comprising a state park, he adds, “Access to public land shouldn’t be subject to price gouging.”
Supporters say the bill is a necessary safeguard against unchecked pricing. Dennis Cawthorne, former lawmaker and longtime chairman of the Mackinac Island State Park Commission, warned that without intervention, the island could be “economically strangled.”
Opposition to the bill is strong from both free-market advocates and other municipalities in the Straits. Americans for Prosperity-Michigan called the proposal “a dangerous precedent,” while Mackinaw City officials voiced concern that it would give too much power to the island at the expense of neighboring towns that host ferry infrastructure.
Instead, some are calling for the creation of a Straits Ferry Authority to jointly oversee ferry regulation across Mackinac Island, Mackinaw City, and St. Ignace—an idea aimed at balancing the interests of all three communities.
As lawsuits continue to fly between the city and ferry operators, the Michigan Senate may vote soon on the Damoose bill. If it passes with the required two-thirds support, island residents would vote to finalize the charter change.
Until then, travelers to Michigan’s jewel of the north may need to pack a little extra cash.
