Ski-fields await snow bonanza

BY MARK HOTTON

The impact of a global recession on international tourism has sent shivers throughout the New Zealand tourism sector except, it would appear, in the ski industry.

Skiers and snowboarders with "snow interwoven in their DNA" will limit any impact the recession will have on South Island ski-fields this year.

The economic value of the southern ski-fields cannot be underestimated. A New Zealand Tourism Research Institute study on the economic benefits of the 2005 winter found an estimated $92.8 million was spent in the Southern Lakes region in that year's ski season, with a further $68.1m spent elsewhere in the country by those visitors.

With skiing being an expensive activity, it is one sector that could expect to see a decline in times of economic woe. Southern ski-field operators could be expected to be concerned about the coming season.

Far from it. It could be part of a marketing strategy to put a positive spin on any situation, but operators say they are "positively optimistic" about the year.

They say that while the season's fate hinges on snow quality and quantity, several factors could boost skier numbers this winter.

The value of the New Zealand dollar could force New Zealanders to take a winter holiday at home while also attracting Australian boarders and skiers, many of whom could not afford a northern hemisphere trip.

Tourism New Zealand launched a television marketing campaign in Australia this month the earliest that Australian skiers have been targeted.

Sales and marketing manager David Ovendale, of NZSki, operator of the Mt Hutt, Remarkables and Coronet Peak ski-fields, said a "fairly extensive" print and online campaign would run until June to support the TV advertisements.

Ski-field operators have doubled the war chest for the Ski Tourism Marketing Network (STMN) to allow the unprecedented campaign to run.

"We see Australia as being an opportunity to protect our winter. A lot of Aussies this year have elected not to go to Japan, the United States, Canada or Europe, but are still intending to go skiing somewhere," Ovendale said.

Australians would be tempted by a combination of a favourable exchange rate, more flights and cheaper accommodation, he said.

"We're not petrified about the winter. We're somewhat protected because for many of our customers, this interaction and engagement with the sport is part of their social fabric," he said.

"You don't give up part of what identifies you. If you're a skier, you're a skier.

"If it's going to cost a little more, you'd look at other ways to save money rather than stepping away from skiing."

Mt Hutt manager Dave Wilson is also bullish about the low exchange rate.

"It's much cheaper to come to New Zealand than it probably ever has been. From that point of view, I don't think we'll lose people who have come in the past," he said.

Wilson was confident any international decrease would be offset by local regulars buying season passes, which were a "must have" for many.

"A lot of people still want to ski. They just may not end up spending on extras," he said.

"If you can buy a season pass and get out every weekend in the winter, then it's a great way to get out and enjoy the day."

Luenne Evans, of Methven's Abisko Lodge, has increased bookings from Australian school groups, and a longstanding snowboarding group from Japan has just reconfirmed.

"Where numbers were tentative last year and people were dropping out, this year numbers are increasing," Evans said.

"I'm getting phone calls asking for extra beds, rather than fewer beds, and those are the signs that keep us upbeat."

Treble Cone chairman Nat Craig believes Tourism New Zealand's campaign will bring more Australian skiers.

"We've got a captive market sitting in Australia and they're making a decision now about where they're going to go for winter," he said.

"The local players are spending millions of dollars in marketing to hold them in Australia because they know we are a significant threat because the product and experience we can offer is far better than what they can get at home," he said.

Craig is optimistic about the coming season, even though 2008 was not a good year for the Wanaka ski-field.

Not only was capital expenditure of nearly $2m needed, but the number of skier days was 13,000 below the budgeted 87,000, leading to a $486,000 trading loss.

Those factors, combined with this year's recession and problems with securing additional financing, left the field's future in doubt well before the first snow flurry.

But a $2m cash injection from shareholders and the prospect of more Australian skiers has improved the outlook.

Craig said the industry was facing an economic climate that it had not experienced before.

More than half of the skier days in the Southern Lakes region come from overseas visitors, along with high numbers from the North Island.

Cardrona sales and marketing manager Nadia Ellis said anecdotal evidence from Australian travel agents confirmed many keen skiers and snowboarders had cancelled winter trips to Japan and North America but still wanted an overseas ski holiday.

"A lot of our skiers and boarders are absolutely dedicated and would probably go without food before sacrificing their ski holiday. Given a good winter, we have every right to be positive," she said.

"It won't be the end of us if we don't get a good snow season, but if we get good snow we've got every opportunity of a stellar year."

All that remains is for the snow gods to do their job.

- © Fairfax NZ News