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« Previous Story | The Industry Report Home Page | Next Story » China's Ski Industry Slows To Take A BreathBy Patrick Thorne 
A white gold rush began a decade ago in the world's most populous country. Projections for the Chinese ski industry were for triple-digit annual growth in both the number of resorts and the number of skiers. All of this was from little more than a standing start in 2000. Just how much of that growth has actually materialized is difficult to accurately measure. The Chinese ski market is variously estimated at between 1 million and 10 million people (most commonly a figure of 3 million is quoted). One published report says ski resorts in China registered 3 million visits in 2005, compared to 300,000 visits in 2000. But these projections have ceased to be quite so optimistic in the past 18 months. The pause button has been tapped. China's growth has slowed dramatically in common with business models worldwide. There have been reports in the past year of some small ski areas closing and major new developments once announced as scheduled for completion that remain incomplete. One such is the delayed Ping Tian ski area, the first to try to tackle a key flaw in China's ski industry growth, the fact that hundreds of thousands of Chinese skiers try skiing and enjoy the sport at small local hills, but have few destination-style resorts with more challenging slopes for their advancement. Ping Tian brought in North American expertise for design and management in 2007. It is still moving forward, just not as quickly as originally envisioned. "The start of Ping Tian's development was significantly delayed by the local and federal approvals process. That was largely due to the fact that no other world-class mountain resort has been developed in the Xinjiang province and there was not a formal process for entitling such a project," Chris Cushing of SE Group who have worked on the project, told The Industry Report. "Potential investors in the project were not willing to commit until full approval had been granted. Ping Tian has now reportedly received all of its general approvals from local, provincial, and federal agencies and is actively pursuing development partners prior to initiating detailed planning, design, and construction," Cushing said. The number of ski areas actually operational is uncertain, too. Reports vary between wildly optimistic estimates of "50 ski areas opening each year with 500 by 2010," to far more conservative figures. Research by the Scottish-based company Snow24, which tracks information on 6,000 ski areas in 80 countries, so far has confirmed the existence of 60 ski areas. However, it seems likely there are many more small, rudimentary hills. There is an extreme gap in quality and amenities among the resorts that are complete. The basic ski areas have primitive lifts powered by oxen towing sleds uphill to extreme luxury developments such as that under way at Yabuli which is due to include a private gondola with heated cabins, leather seating, a BOSE sound system, and an in-cabin mini bar, all linked to a luxury Western branded hotel and private ski slopes. Skiers from Europe and North America reporting back from Chinese ski areas most commonly report a very poor quality experience, even at the apparently most developed resorts. They tell of lodging of a low and poorly maintained standard, inedible cuisine, non-functioning lifts (or non-operating despite being functional), and non-maintained ski slopes. Chinese nationals also seem to be aware of low standards. For example, this message was posted on a Chinese ski site in January. "I skied early this year in Yabuli, what a disaster. Not only was the snow condition bad (essentially no snowmaking), the worst is, it's a very poorly managed area with numerous independent operators, not even trail maps are available. Unless Yabuli improves management and snowmaking ability, it's not worthwhile to travel such long way." China is now the world's leading producer of ski clothing and, increasingly, of ski equipment too, but the equipment available to rent in most resorts is of poor quality construction and maintenance. Most Chinese skiers have to rent "ancient" skis from the pre-carving ski area, and less than 10 percent own their own ski wear. Some 22 percent rent ski clothing, and 72 percent ski in their own "cold-proof" winter clothes, some in leather jackets, and others in fur coats. China's powerful central planners seem to be aware of the issues and appear to be trying to generate a sustainable Chinese ski business. State organ The People's Daily newspaper has warned of possible market stagnation as the potential for world-class ski developments is diluted by hundreds of little hills taking all the business, deterring investment in the potential great resorts China has the terrain to accommodate. It's the big resorts the Chinese Government want. They've pumped billions into developing the northern city of Harbin's air and road infrastructure to cope with big ski tourism. They've put in (as yet unsuccessful) bids to host the Winter Olympics and have staged Asian Championships at Yabuli. But the long-term future for skiing in China looks good despite current economic and planning issues. After all, two-thirds of China's 1.3 billion population live in mountainous areas, more than 700 million live within three hours of one of the new ski areas, and the world's biggest mountains are there, too. But it does appear future growth will be a little more leisurely. As many as 15 million people have been "made wealthy" from among China's 300 million urban dwellers. "Most well-off people have developed a strong interest in skiing," says Ning Shimin, Director and Party Secretary of Heilongjiang Provincial Tourism Administration. "If 5 percent of China's population go skiing, it will make a ski population of 60 million." There are even signs of a very rudimentary start of out-going ski tourism from China, with package tours to the Italian Dolomites organized this past season after the European Dolomiti Superski region created its own clone resort in China. Perhaps China will be sending paying skiers and boarders, as well as skis and boards, to the rest of the world's ski markets one day soon. What It Means: There's just something pleasantly "green' about the idea of oxen pulling skiers uphill, isn't there? Still, it is fascinating that the nation that is a leading manufacturer of ski clothing and equipment has hit the pause button in developing its own industry. Wonder what Confucius would say about all this. « Previous Story | The Industry Report Home Page | Next Story » |
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