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October 25, 2007
So, do you pull the trigger on your mountain snow guns while many of your customers can only take a Saturday night bath and have to buy bottled water at restaurants? It hasn't come to that decision yet. Perhaps, fingers crossed, it won't.
Still, a persistent and severe drought in the southeastern states - a region accustomed to summer/fall hurricanes and tropical storms - is into its 16th straight month of dry conditions. Some rain earlier this week barely cleared the dust, but the extended forecast is mostly bright and sunny, though a few showers may drip on parts of North Carolina.
But the glass could certainly be looked at as half full in some mountain resort regions. The Industry Report's Justin McAneny, regional editor for OnTheSnow.com, has checked in with ski resort operators and weather officials. Here's his briefing:
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October 18, 2007
"We made a conscious effort about five years ago to expand what we already have been doing to make Mountain High a welcoming environment for skiers and snowboarders no matter what race, color, or creed," John McColly, Mountain High Director of Marketing and part owner of the resorts management company, told The Industry Report.
That's a tall order when your market is Southern California, a playing field that is among the most diverse in the United States. Los Angeles County alone includes 9.5 million residents. That's the primary market. Mountain High's Angeles National Forest location in Wrightwood is the closest major winter playground.
Just over 70 percent of the population is "minority" (clearly a misnomer here). Nearly 50 percent is Hispanic, with slightly more people of Asian descent than African-American. The winter sports market, in general, had traditionally been white, Anglo-Saxon.
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Leon Leonwood Bean (L.L. to all of us) believed so strongly in the Golden Rule and his interpretation of it that he made it the foundation of his business. The ski industry can learn much from this extraordinary lifestyle retailer.
General managers of CNL's recently acquired mountain resorts did just that as they gathered together last month on an island off the Maine shore for the first time. (Part one of this Industry Report exclusive appeared in our Oct. 8 issue. It is available at http://industryreport.mountainnews.com.)
L.L.'s Golden Rule: "Sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more."
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Glitz and glamor. That's what we all know best about Switzerland's St. Moritz. We don't know much about its pioneering spirit and green initiatives. Just like Aspen, said The Industry Report's Patrick Thorne, the resort's electricity supply was originally hydro-electric. Just like Aspen, it's turning green and proud of it.
In fact, Thorne reminds us, it was winter sports vacation pioneer, hotelier Johannes Badrutt, who brought the world's first winter tourists to his Kulm hotel in 1864-65. He turned on the first electric light bulb in Switzerland in his hotel dining room for Christmas 1878. Badrutt had travelled to the World's Fair in Paris earlier that year and was so inspired by electric power demonstrated there that he built a hydro-electric plant above the hotel as soon as he got home.
Switzerland followed his lead and, still today, 60 percent of the country's power, including most of that in the ski regions, comes from hydro-electricity. St Moritz is so marketing savvy that having become the first place in the world to make a trademark of its own name 20 years ago, it even has its own brand of St Moritz green electricity, ‘Clean Energy St Moritz.’
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October 04, 2007
It's true that timing is everything. Most everyone in the industry knows by now that Congress (those elected officials of ours with an11 percent approval rating) did not act to extend the exemption for H-2B visa holders by the deadline of Sept. 30. That potentially spells serious trouble for mountain resorts (and related sectors) that are increasingly dependent on a force of foreign workers.
The Industry Report asked Roger Leo, Mountain News New England editor, to get some fresh perspective on the much-discussed subject from two of the resort industry's best sources: Geraldine Link, director of public policy for the National Ski Areas Association, and David Crowley, immediate past chairman of NSAA and part of the family that owns Wachusett Mountain in Mass.
How big is the issue? “Our latest industry survey, a really comprehensive one for the 2006-2007 season, shows five percent of ski industry workers nationwide were H-2B visa holders; eight percent were J-1 visa holders in the student-visitor program; and the remaining 87 percent were domestic work force," NSAA's Link told Leo.
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A candid fireside chat with Bob Peixotto, Chief Operating Officer of what is surely America's most successful outdoor lifestyle retailer and promoter, is not something mountain resort general managers often get a chance to have. The opportunity becomes, well, priceless, when you add to that his connection as an avid skier and longtime vacation homeowner. This is the first of our exclusive two-part report on that chat which has many implications for our closely-related industry.
Where better for the chat than at an island retreat a couple miles offshore from L.L. Bean's Maine campus? Peixotto was the invited guest of CNL, the newest mover and shaker in the ski acquisition and ownership realm. He joined the casual atmosphere of the first evening of CNL's first gathering of its ski resort general managers and key company resource people in September. The Industry Report was present with both CNL's and Peixotto's permission.
"I'm one of your industry's stakeholders," Peixotto told the group. "My family is at our home at Sugarloaf nearly every winter weekend and often during the off-season. (CNL acquired Sugarloaf in August.) Your success is important to me in terms of my family's recreation and in property values." He would have much more to say about this "stakeholder" issue, but he established his common credentials early.
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A recent ruling by the 9th Circuit Court of Appeals in San Francisco that halted Mt. Ashland's expansion plans left the Southern Oregon resort "somewhat disappointed, but it's not a death knell," General Manager Kim Clark told The Industry Report's Far West Editor Dan Giesin. That court was the same one that recently slammed snowmaking plans for Arizona Snowbowl.
Clark said the court's ruling "pointed out two deficiencies in the EIS" filed by Mt. Ashland: the lack of a study on the Pacific fisher, a weasel-like animal that has been seen in the area, and the need to clarify the potential problems to the riparian reserve and watershed. Both of those items fall into the realm of the Forest Service.
"The court supported our other work," Clark said. Giesin said it looks like it's time for the Forest Service to get its act together.
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It no longer matters whether you speak German, French, Italian, Spanish, Swedish, or Norwegian. OnTheSnow.com, the consumer Web site owned and operated by Mountain News, publisher of The Industry Report, can talk "snow" in all of those languages these days.
"Our 1.2 million monthly visitors come from all over the world looking for snow conditions, hot deals, news, and much more," Mountain News Publisher Rob Brown told The Industry Report. "We believe this is a first for a winter sports portal and certainly will make it easy for millions of people to navigate our consumer site."
The Web site has added information on 1,200 mountain resorts in 25 countries. Viewers can change their language preference by clicking their preference on the top right side of the home page. So now, skiers and snowboarders don't even need to speak a common language.
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October 02, 2007
OK, bad news first. Ralf Garrison, president of Mountain Travel Research Program (MTRiP) told about 150 mountain resort sales executives today that several indicators don't send out good vibes for the industry, including dramatic declines in the National Consumer Confidence index from 111 in July to 99 in September, with 7.6 percent drop in September alone.
Garrison was among a strong line-up of pundits at Mountain Travel Symposium's first regional Fall Forum Tuesday (10/2) at Breckenridge, Colo. The good news, Garrison said, is that lodging reservations for the coming season are up 2.2 percent over last year, average daily revenue is up 9.9 percent, and overall revenue up 12 percent.
"The session was solid in terms of presenters, new information provided, and in attendance, particularly for a first-time effort," Mountain News Publisher Rob Brown told The Industry Report. Coverage for this alert also was provided by longtime Colorado-based publicist Joan Christensen.
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