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Energy Is Overriding Issue Facing Midwest Resorts, Says Crystal's Jim MacInnes
By Craig Altschul
July 28, 2008
A spa at a mountain resort is a spa at a mountain resort. Right? Not this one. The Crystal Spa is a $4 million, 13,000-square-foot expansion to the existing indoor pool and fitness center at Michigan's Crystal Mountain Resort. It will open in December to arguably become the Midwest's most complete destination spa.
But there will be a difference in this facility that Crystal Mountain CEO and President Jim MacInnes believes will set the direction for helping to reduce spiraling energy costs than anything ski resorts can do. The Crystal Spa will be among the first LEED-certified mountain resort facilities in the Midwest.
LEED-certified facilities are those that undergo a rigorous, independent, third-party verification that the project is environmentally responsible, profitable, and healthy. LEED is an acronym for Leadership in Energy and Environmental Design.
"We've got to find ways to reduce energy costs," MacInnes told The Industry Report.
Crystal has been an industry leader when it comes to environmental issues for a number of years. The Sierra Club recently gave the resort its White Pine Award for "extraordinary dedication to protection of the environment." Crystal is the only four-season resort in Michigan to achieve "Leader" status with Michigan's Energy Office. The resort has been owned by George Petritz and his family since 1956.
MacInnes purchases credits to power the Crystal Clipper high speed chair entirely by wind power. He has a long-term goal to power the entire resort with 100 percent renewable energy.
"I remember discussing the issue of 'peak oil' when I was an engineering student in college 32 years ago," MacInnes said. "King Hubbard, whose books I studied, accurately predicted that United States oil production would peak by 1970." (Peak oil refers to the point when the maximum rate of global petroleum extraction is reached.)
"We all assumed the country would have developed plenty of alternatives over the years, so there was no need to really worry. Obviously, that hasn't happened and, now, we're about 70 percent dependent on other countries," he says.
The effect of high fuel and food costs on Midwest skiers will have an impact "that can't be minimized, but weather is important, too," he said. For example, he noted that the resort's golf business was slightly off this summer, but it was hard to tell if it was because of higher gas costs or a rainy early season, or a combination.
Times are a changing in the Midwest. The word "feeder" was in every Western mega-resort's lingo as marketers looked for linkages to speed "graduation" from the region's smaller hills to the "Big Time" mountains to the West.
"I think we'll be seeing trends change since Midwest resorts are relatively close by in terms of driving distance, and as airline prices continue to rise, along with the hassles that now come with air travel increase," he says. The Crystal Spa, for example, literally in the heart of the resort, is planned not only as a major amenity, but as a destination in itself.
MacInnes said it would be prudent to be conservative when it comes to lift ticket pricing, and while he said Crystal's prices will see a small bump here and there, "we've got to be careful with people's pocketbooks right now. Conservative should be our watchword in that regard."
The Midwest Ski Areas Association will meet at Boyne Mountain, Mich. August 10-13 and energy issues are certain to be an underlying theme. But, continuing legislative issues, particularly in Michigan, won't be far from the front burner.
MacInnes notes the tax on lift tickets that bubbled up last winter in Michigan has been beaten back, but there's what amounts to a mystery surcharge business tax in the mix now.
"Nobody know what the rules are yet for calculating the costs, and we may not know until we write the check. We're working to get it all simplified, but it could be anywhere from a 100 to 200 percent increase," he said.
Another issue involves changes to the Ski Area Safety Act that looks to significantly curtail the way snowmobiles are used at ski areas. The legislation is being pushed hard by the parents of a young child tragically killed in a snowmobile accident several years ago.
"We certainly don't object to anything that makes it safer, but the ironic thing here is the snowmobile involved in this sad accident was only going 8 mph," MacInnes said. "The proposed legislation really would make it difficult, for example, to get to accident scenes."
The Michigan Ski Areas Association is working through its lobbyists to keep the legislation reasonable, but the boy's parents and their attorneys are expected to fight for "comprehensive reform" that, the association believes, makes it "almost impossible to operate a snowmobile on a ski slope."
Finally, the issue of terrain park safety will continue to be discussed. MacInnes said Crystal, as well as Boyne, and Nubs Knob, have removed tabletop features from their parks altogether. "We all feel good about that," he says.
What It Means: It's energy all the time these days. Crystal Mountain seems to be leading the way by setting the example of a LEED-certified significant expansion project. The energy situation, bad as it is, may have a softer, gentler side if MacInnes is correct. Heartland skiing families might think a couple of SUV tank fills are a bargain compared to airline ticket costs, baggage and equipment fees, packed flights, and other irritants. It bears watching.
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