Three bad winters could shut all of Scotland's ski centres, claim
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JUST three bad winters, revenue-wise, in a row could be enough to put all five of Scotland’s ski centres out of business, a new report claims.
The newly published Scottish Snowsports Strategic Review outlines the challenges the £30 million per year industry faces and what needs to be put done to protect it and the 634 workers employed on average per annum.
The independent report commissioned in September, last year, by Highlands and Islands Enterprise (HIE) and Scottish Enterprise also states that the draw of the £19.5 million Cairngorm funicular which opened in 2001 appears to be on the wane.
Amongst recommendations to help safeguard the industry is that the Scottish Government makes representations to Westminster to try to win concessions on the VAT charges on ski uplift which costs the five ski centres around £1 million between them every year.
The report outlines the financial difficulties faced by Scotland’s ski resorts, with the single biggest issue being identified as the unpredictability of the snow conditions, which drive visitor numbers, revenue and profitability.
The authors, Glasgow-based Tourism Resources Company, say in their 70-page report, that this causes a "significant cashflow dilemma".
"Due to the need to survive, the industry is rather conservative and growth planning for the future is difficult," they state. "Discussions amongst many of the operators have revealed that they can survive two poor seasons ‘back to back’, but a third poor season would seriously question the sustainability of every ski centre."
Individual reports have been drawn up for CairnGorm Mountain and the four other snowsports centres – Glencoe, The Lecht, Nevis Range and Glenshee – on key findings and outlining future development recommendations.
The details have not been made available because they are commercially senstitive.
The ski market in Scotland has plummeted from a peak of 631,000 skier days in 1991 to 367,000 in 2010 – the best recent year – while the 10 year annual average now is only 199,100 skier days.
The report states: "It is unlikely that snowsports in Scotland will ever come back to the levels of the late 1980s and early 1990s unless there is a year-on-year, improved access to good snow and measures are put in to attract an older population and drive entry into the sport.
"The ski centres need to become more focussed on year-round outdoor activity."
One area that CairnGorm Mountain is looking at is diversification with plans for a mountain bike centre and a zip ride, potentially, to follow.
See the full report at www.hie.co.uk/highlands-and-islands/economic-reports-and-research
And for more on this story see today's Strathy.
