« Previous Story |
The Industry Report Home Page
| Next Story »
An IR In-Depth Report: Rumors Of Ski Area Death By Warming Exaggerated?
By Craig Altschul
March 17, 2008
They call it Abondance. But, the snow didn't arrive in abundance for the 2006-07 season. So, Abondance didn't turn on its lifts for this season.
That led to an Associated Press story under this headline: Snowless In A Warming World, Ski Resort In French Alps Bids Adieu. The story got enormous pick-up in the world's major newspapers which, as Patrick Thorne puts it, "are hungry for any 'evidence' of global warming." Thorne is OnTheSnow.com's European Editor and a frequent contributor to The Industry Report on global issues.
The AP piece followed the fortunes of Abondance as it chose not to open. They, perhaps, are regretting that decision as they dig out of this winter's healthy snow dumps in the Alps. But, here's the rub. Thorne, who has assembled a significant base of knowledge and data on mountain resorts across the globe, says the decision by Abondance was not really due to warming.
"There are about 6,000 ski areas operational in 80 countries around the world and, every year, a few dozen of these close down," Thorne explains. "Remarkably however, the overall number has changed little worldwide because while more ski areas have closed than opened in Europe and North America over the past few decades, hundreds of new ski areas have opened in Asia to cancel out the decline."
Resorts are still opening, albeit to a lesser degree. Hence, Thorne argues, it is simple business economics, not global warming, that closed Abondance and a few dozen areas AP didn't pick up on.
"There are indeed thousands of ski areas like Abondance that jumped on the skiing band wagon 40 or 50 years ago when people were keen to book a week on the slopes and do nothing but ski for six days then head home," he says. "Fast forward to the third millennium and people don't want to ski all day. They want terrain parks, high speed lifts, snow guaranteed by machines, and the option to just pop over for a night or two. They also want a multi-million dollar payout if they fall and get hurt."
The death knell for the likes of Abondance rings out because, Thorne believes, ski resort economics don't compute for them anymore. Older lifts no longer are worth repairing and the costs of running them, insuring them, and staffing them outstrip income. Then, there's the fact the ski market can whizz by on fast roads, trains, and planes to bigger, better ski areas.
Families who have struggled for years to run a ski area on a budget realize they're never going to get in the black, but could get a better deal for real estate. Perhaps the old ski patriarch or matriarch dies and the next generation doesn't share the same passion or have the resources for today's market. "But, it's not global warming," he says.
The current Western business model does not apply in Asia. "That's where we see winter sports thriving. More than 200 ski areas of one form or another have opened in China since 2000, many on extremely dubious terrain in terms of being in locations that get reliable snow," Thorne points out. "A burgeoning wealthy Chinese middle class are delighted to have the chance to try skiing in conditions that most of us pampered Westerners would reject, just for the thrill of sliding."
Labor and insurance costs are not an issue. So, it's boom time for winter sports in China, as well as in Korea and Russia. Fears of global warming are not worrying them.
"Lest we forget," he reminds us, "amongst the gloom of resort closures closer to home, new ski areas are still opening in Europe and North America. Canada's Revelstoke is less than three months old, but in recent years we've seen the arrival of Moonlight Basin, Mont.; Tamarack Resort, Idaho.; and Mt. Bohemia, Mich.
Those who say mountain resorts are a bad investment in a warming world should consider several more arguments, Thorne says.
"First, as the world warms and sea levels rise, the best place to be to escape the heat and the water is high up. So, long term investment should be in land at altitude - snow or not. Gstaad, Switz., which is comparatively low lying by modern standards although it does have glacier skiing 7,000 feet above, already has started to market along those lines. Gstaad saw record business last summer from Swiss nationals wishing to escape all-time high temperatures in Geneva and Zurich.
The second trend is indoor snow centers, the latest one of which opened in Moscow this month. The first U.S. center is planned for New Jersey, but there are muddy financial waters there. There are 60 indoor snow palaces in more than 20 countries today. The oldest 21-years- old.
These places, perhaps uninspiring to true outdoor sports lovers at first glance, have proved a boon to grow new business for conventional ski areas in Europe, many of which actually sponsor and even fund construction costs of the facilities close to major urban population bases.
But the important fact is that they are providing a man-made sanctuary for that apparently endangered species we call snow. The longest indoor run today is 1,800 feet long. But, they keep getting bigger, with slopes up to 7,000 feet long at conventional ski areas now being considered.
Technological advances are making snow production possible at ever higher temperatures. That ought to help calm investment fears.
"Here's a neat story, perhaps a better fit for the National Enquirer than the IR, " Thorne laughs. "A large Israeli corporation that builds cooling systems for South African gold mines has discovered a by-product of the process is snow. This year it has sold the first two of its remarkable plus-temperature snowmaking machines to Pitztal in Austria, and Zermatt in Switzerland. Those resorts plan to create snow to top off its summer glacier ski slopes."
What about Abondance? Thorne says it's still in the snow business today after all the fuss a year ago. Resort officials seem to have found a sustainable business model, global warming or not. Abondance is now a family snow fun park.
It was Mark Twain who said "reports of my death are greatly exaggerated." Perhaps we should remember that.
« Previous Story |
The Industry Report Home Page
| Next Story » |
Email To A Friend
|
