PDF (71kB) - QUT ePrints

PDF (71kB) - QUT ePrints

This is the author-manuscript version of this work - accessed from http://eprints.qut.edu.au Taylor, Marilyn and Yang, Xiaohua and Strom, Robert (2007...

NAN Sizes 0 Downloads 8 Views

Recommend Documents

PDF (142kB) - QUT ePrints
in excess of 20% expected in 2007 in each global region (Kane, 2004; .... the top ten selling video games were based on

PDF 177kB - QUT ePrints
7 Singer & Friedlander Ltd v John D Wood & Co [1977] 2 EGLR 84. 8 Zubaida v Hargreaves [1995] 1 EGLR 127. 9 Singer & Fri

PDF 88kB - QUT ePrints
2 Renee Gastaldon, Dividing Fences and Dangerous or Intrusive Trees: The Draft ... The issue of spite hedges or spite fe

PDF (252kB) - QUT ePrints
Apr 2, 2015 - Ted Sarandos, Netflix's chief content officer, told triplej's Hack program that they are: open to producin

PDF 256kB - QUT ePrints
George Weston Foods Limited v Goodman Fielder Ltd. 24Bread packaging declared in large typeface: “Now Twice the Fibre*

PDF 504kB - QUT ePrints
Hunter, 2005) and, on the French Minitel network, where user pseudo creation subverts the official terms and conditions

PDF (222kB) - QUT ePrints
'Teenagers are scientifically proven to be stupid,' he'd say. 'Try to fight ... 'It was a dare,' Richard Crinkle said in

PDF 130kB - QUT ePrints
Jan 16, 2011 - 8 Singer & Friedlander Ltd v John D Wood & Co [1977] 2 EGLR 84. 9 Interchase Corporation Ltd v ACN 010087

PDF 69kB - QUT ePrints
inquiry by the Australian Securities and Investment Commission (ASIC) discovered that giant multinational corporations â

PDF 89kB - QUT ePrints
1.1 Case example: Trevenar v Ussfeller [2005] NSWSC 582. In Trevenar v Ussfeller, ..... 43 Louth v Diprose (1992) 175 CL

This is the author-manuscript version of this work - accessed from http://eprints.qut.edu.au Taylor, Marilyn and Yang, Xiaohua and Strom, Robert (2007) The Ski Resorts Industry in the Twenty-First Century's First Decade a World-Wide Competition between Continents, Countries, and Regions. In Proceedings North American Case Research Association 2007 Annual Meeting, pages pp. 1-17, Keystone, USA. Copyright 2007 (please consult author) The Ski Resorts Industry in the Twenty-First Century’s First Decade – a World-Wide Competition between Continents, Countries, and Regions

As it entered its third century, the ski industry faced numerous challenges and opportunities. Worldwide the industry confronted the significant warming trend that was affecting many countries, as well as their aging populations. In other places economic development either provided a robust industry or presented opportunities for domestic corporations as well as governments to develop their facilities and country industry. Each continent, country, region, and individual ski resort competed for its share of the skier’s pocket.

Overview of the World-Wide Ski Industry Skiing, the winter form of recreation as we know it today is a relatively modern invention. It actually began in response to the need of people in cold snowy climates to have some means of transportation during the winter. The word “ski” has a Northern European linguistic root, describing a splinter cut from a log. It also became the Scandinavian term for shoe and was pronounced “shee”. For the next 300 years, skis served as a means for simple transportation, for many purposes including herding reindeer and hunting. In the years between 1300 and 1800 the soldiers of Norway, Sweden, Russia, and Finland put on skies during the winter months for military missions. By 1800 skiing had taken hold as a sport and by the end of the 19th century, skiing had spread throughout Europe – widening its spread to the USA and other countries through U.S. Norwegian immigrants. Initially skiers walked uphill and skied down. Post-WWII saw beginning use of early ski lifts. For example, New Zealand used “nutcracker rope tows” (belt loops around the hips) powered by truck engines. The tows pulled skiers up rapidly and were initially accompanied by many accidents. Skiing as an industry reached the five populated

1

continents. The Antarctica drew extreme skiers, i.e., those looking for high, dangerous slopes without the facilities and support offered by resorts.

Snow Sports founders viewed their industry as comprised of many facets such as manufacturing and retailing, as well as resort development and tourism. (See Appendix B for industry related websites.) They also realized that they were in a business that involved a somewhat fickle relationship with Mother Nature, as the success of their business was largely dependent on how good the ski industry was this season – that is, how generous Mother Nature was in gracing the industry with snow. Snow depth was considered very important in the skiing industry as it determined whether a ski resort stayed open or not, the number of operational days within a season, and the amount of lift capacity operating within the season.

The Snow Sports industry was best known for its skiing, snowboarding, and cross country skiing. However, a “new” sport that was popular in the slopes in recent past seasons was “New School”, a youth movement about music, festivals, and action sports. The movement was a fusion of snowboarding, skiing, skateboarding, bike stunt riding, motocross, and surfing – a movement that was “hot” with 12-16 year olds. Another sport that was rapidly becoming popular throughout the worldwide ski industry was Telemark Skiing, where downhill skiers “floated”, i.e., traveled down the mountain with their heels un-attached to their skis. Telemark skiing was another skiing venture. Telemark skiers mostly accessed backcountry, as it offered freedom and untouched powder for advanced skiers who wanted to push their limits.

The industry had created many innovative products, succeeding in massive gains in women’s and children’s equipment and apparel stores. The industry recognized that it heavily relied on affluent but aging baby boomers. (See Appendix C for demographics of Alpine Skiers.) However the industry entrants were also marketing themselves to the Generation Y. The Generation Y group was defined as those born immediately after Generation X with Generation X defined as those who were wholly born in the 20th century. Generation Y was defined as including people in their mid and early 20s as well as teenagers and children over the age of 5. Although the term was most popular in the USA, it was used beyond the USA to refer to

2

similarly aged youth in Anglophone worlds. The Generation Y age group was more diverse than ever before, for example, 40% of 16-24 year olds were not Caucasian.

The Kottke National End of Season Survey 2001-2002 prepared for the National Ski Areas Association estimated global skier visits at 330 million with an estimated annual expenditure of US$40-55 billion. The average lift ticket price worldwide on January 1, 2005 was $235.6USD (181.56 Euros/L124.41 GB) – up 3% from previous year.1 The consumer profile for the Snow Sport industry continued to exhibit stability on many visitor characteristics, and a gradual shift on others. Among the most prominent shifts was the continued aging of the visitor base and the related increase in the snow sports participants’ level of experience. There were also signs of gradual increase in participation by children in the 10-14 and 15-17 age groups, first-timers, and beginners. There was also an increase in the variation of race/ethnicities among the skiers. Cooperation worldwide occurred primarily through efforts by various marketing groups, for example, The World Travel Market that drew ski resort representatives.

All of the world’s continents were affected by the global warming trend that was occurring. Skiing opportunities existed on all the continents of the world. (See Exhibit 1 for areas/countries where skiing maps were indicated as available.) However, skiing in the Artic and Antarctic were for “extreme skiers”, i.e., those who dared high and dangerous mountain peaks without the ski resort facilities and support sought by most skiers. The continents differed with regard to the extent and quality of ski resort facilities and the amount of information readily available to potential skiers. The major countries in order of the popularity of the sport in that country were the USA and Canada, Japan, European countries, China, Australia, and New Zealand. The most extensive industry information on the industry existed for the US/Canadian ski market. Information on the other markets was more limited. Area/Country United States

# of Areas Indicated as having Ski Locations 41 states

Canada Europe

12 provinces/ territories 24 countries

South America Asia-Middle

3 countries 9 countries

Areas Listed in the Ski Map Index as having Maps of the Skiing Areas Available (# of Locations indicated for selected countries) Exceptions: Delaware, D.C., Florida, Kansas, Louisiana, Mississippi, Nevada, Oklahoma, South Carolina, and Texas, All 10 provinces plus Yukon and Labrador. Exception: Northwest Territories Andorra (7), Austria, Bosnia-Herzegovina, Bulgaria, Finland, France (58), Georgia, Germany, Greece, Iceland, Italy, Liechtenstein, Netherlands, Norway, Poland, Romania, Scotland (5), Slovakia, Slovenia, Spain, Sweden, Switzerland, Yugoslavia, and Hungary Chile (16), Bolivia (1), Argentina (11) Algeria, Georgia, Israel, Kazakhstan, Lebanon, Lesotho, Russia, South Africa, and

3

East-Africa Pacific Rim

Turkey

22 countries

Australia (11), Algeria (1), Georgia (1), Israel (1), Japan (22), Kazakhstan (1), Korea (5), Lesotho (1), Lebanon (6), New Zealand (17), South Africa (3), Russia (2),

Source: “Ski maps” (http://www.skimaps.com/; accessed 8/3/06). Exhibit 1. Areas of the World and Countries (or States/Provinces) for which Ski Area Maps are Available

The USA and Canadian Markets The American industry had a healthy average of 56.6M ski visitors during the first four winters in the Twenty-First Century, somewhat higher than the 1990s average and 18 percent higher than the 1980s. The 2003/2004 U.S season was reportedly the third best ever in terms of skier visits, despite persistent negative factors such as the slowness with which the international economy was recovering, the sluggishness of the jobless recovery in many sectors of the economy, high gas prices, muted consumer confidence levels, international tensions, and other factors. In the USA, the Snow Sports industry was governed by SnowSports Industries America (SIA). SIA was a national, not-for-profit, member-owned trade association of competing snow sports companies. Membership was open to product manufacturers, distributors, suppliers, and retail shops. There was also the opportunity for limited membership for service providers, including internet/web designers. SIA was known for its “Snow Sports Industry Intelligence Report”, a comprehensive report on the global skiing market which provided invaluable information to the skiing industry. SIA also helped the industry by providing information on what was popular in the market in terms of direct winter sport equipment, apparel, and accessories.

Regional and state organizations focused primarily on marketing and PR efforts. For example, a consortium of Idaho, Montana, Wyoming, and South Dakota state tourism organization marketed that U.S. region abroad. In addition, a Utah trade group called “Ski Utah” had been very aggressive on behalf of the “Beehive state” since its formation at the time of the Salt Lake Olympics in 2000. As a result Utah was much more visible to skiers from Europe as well as other countries.

In the USA the number of Alpine Ski Lessons had increased, with a 1.1% positive change between the year 2002/03 and 2003/04, where 17,935 lessons were given in 2002/03 and 18,135 lessons were given in 2003/04. The number of Snowboard Lessons had increased 0.2% with

4

6,113 lessons taken in 2003/04, an increase from 2002/03 figures of 6,101. Travelers from abroad were attracted to U.S. and Canadian resorts for multiple reasons including: •

The development and maintenance was considered among the best in the world.



“English spoken here” was also helpful for many ski visitors.

For example, a senior executive in the industry who had worked at the Vail ski resort and then in a company that worked with tour agencies on behalf of ski resorts noted that:

“Brits like to come to American resorts like Vail.”I hear all the time how much they appreciate that 'things work' here; we're on time, lifts don't break down, restaurants are good. They especially like it when they put their kids in ski school. The kids are very happy because they understand the language and do so well." 2

According to the 2001-2002 National Ski Areas Association end-of-season report, there were 5.4 million skiers/snowboarder’s visits with 493 ski areas in operation in the United States. In Canada, according to the Canadian Ski council in Mississauga, Ontario there were 18.9 million visits with 244 ski areas in operation during the 2001-2002 seasons.

Reports from SnowSports Industries America (SIA) and National Ski Areas Association, identified that of the 493 operating US ski resorts, 52 ski resorts represented over half the market (with 26.2 millions of skier visits) in North America and generated annual revenue over USD $2 billion. Four conglomerate ski resort operator companies controlled 26 of the top 52 ski resorts, namely, Intrawest (Vancouver, British Columbia), Vail Resorts (Colorado, USA), American Skiing Company (Utah, USA), and Booth Creek Resorts (California, USA).

The number of U.S. skiers from abroad had increased since the early 2000s, a reflection of several factors including the weakening dollar against the Euro. Cheaper accessibility to ski resorts via “low frills” airlines also affected since a ski resort’s draw depended on accessibility via air. For example, CO and Utah, both popular ski resort states, had good international airport entry points to the state, but travelers had difficulty moving from the major airport to the resorts. Interest in skiing was also faddish, both for the sport as a whole as well as particular countries and locations. A lot of people attributed the increase in European interest in US ski opportunities

5

to the 1989 World Alpine Skiing Championships held at Vail and the 2002 Winter Olympics held in Salt Lake City had done much to enhance the visibility of the state of Utah as a skiing destination. Suppliers of equipment, apparel, and accessories included manufacturers, importers, and distributors. Some of these companies were divisions of major corporations that were listed on the New York Stock Exchange. Other supplier companies were small, independent firms that had few employees. The greatest strength for the independent companies was their ability to innovate in designing new products as these new products were constantly giving skiers and riders fresh reasons to hit the slopes.

Apparel and apparel accessories were a “must” on the slopes. Among the most popular items in recent years were: •

Anti-outerwear, urban influences for edgy looks



Hip in the city, hip on the slopes



Denim in snowboard pants, synthetic leather pants, prints like zebra, military fatigues



Great fitting clothes for women



Pockets for CD players



Avalanche devices in garments for backcountry

Appendix D presents the proportion of sales attributed to the various accessories sold in ski resorts.

In the USA, there were 8500 storefronts and companies that offered winter sports product for retail sale, rental, use as promotions, or use for professional purposes. Out of that 8500, about 2000 were specialty and chain stores that sold apparel or accessories related to winter sports, but were not be called a “ski/snowboard shop”.

Alpine skiers, snowboarders, and cross country skiers were also extensive Internet users as data from the 2004 SnowSports Industry America (SIA) Intelligence Report indicated. (See Exhibit 2 below.)

6

Alpine Skiers Percentage that use the Internet

75%

Average number of internet hours per week

12

Snowboarders Percentage that use the Internet

56%

Average number of internet hours per week

22

Cross Country Skier Percentage that use the Internet

64%

Average number of internet hours per week

9.8

Exhibit 2. Internet Usage on the Slopes based on Snow Sport Categories

Europe The European ski market recorded one of its strongest growth rates in the 2005/06 ski season. However, the industry expected to confront challenges during the 2006/07 season, among which were expected to be high fuel costs and a late season. Upsides were likely to be the strength of the pound and Euro against the US dollar and the introduction of more exotic destinations including countries such as Japan and Morocco. During the 2000 decade, the UK ski industry grew each year with 2005/06 having the greatest growth with seven per cent more UK skiers taking a ski holiday abroad than the previous year. Of skiers from the UK over 36% went to France and 20% to Austria. France was Europe’s most popular ski destination and the French were thus less likely to ski elsewhere. The French were “…a harder sell because they have such great skiing so close.”3 European skiers, especially those from Britain, went to the U.S. and Canada because of the cheaper accessibility. China There were approximately 205 ski resorts in China and the long-term prospects for China’s ski industry were remarkably robust, although the country’s ski resorts lacked good facilities and easy accessibility by public or road transportation. The country’s biggest ski resort was the Harbin Yabuli Ski Resort, a 75 mile drive from an airport that was a two-hour flight from Shanghai. The resort had opened for the third Asian Winter games but its highest peak was only

7

1K meters. In short, as the director of marketing for Europe’s largest manager of ski resorts put it, in China “"They ski on hills and the only real mountains are difficult to get to…It's not the sort of quality we look for." But other ski resort companies are searching for opportunities in China. The expectation was that with rising incomes it would only be a matter of time before China’s skiers sought higher peaks after gaining skill on smaller “hills” with better access from urban areas.

China first attended international winter games at the Lake Placid, New York winter games in 1980. Since then there had been significant growth in skiing interest in China. In the mid-1990s China recorded 300 skier visits in the mid-1990s, 300K in 2000, and 3M in 2005/06. However, the country remained a tiny part of the $7B ski industry with only 10K pairs of skis sold in China in 2005 in comparison to 350K in France.

China had a population of about 1.3B with a significantly increasing disposable income available to the newly-created middle class. Economic growth had been significant for over two decades. In late 1999 per capita disposable income for urban residents reached US$710, 3.6 times the 1978 level. Income for the top ten percent averaged US$1.4K. Urban area disposable income rose almost 10% in 2005 to US$1.3K/person. Income for rural residents was increasing at a faster rate, although in the late 1990s it remained about 70% of urban incomes. Savings grew rapidly nearing US$600/capita in the late 1990s.

A senior marketing executive for an Italian ski boot manufacturer for major brands described China, "Things move fast (there)…There's such energy and thirst for new experiences."4 The fact that China was scheduled to host the Olympic Summer games in Beijing in 2008 suggested that the country would become more visible as a tourist and sport destination. Ski industry experts saw Europe and North America ski markets as saturated in terms of people who had access to mountains and could afford the sport. Many saw China was the next big market to target. A second-level executive for the French ski manufacturer Rossignol, explained, "We have to go after new frontiers because demographics in Europe and the U.S. don't allow for much growth. The explosion of demand in China opens up enormous potential." 5 The president of Rossignol

8

summarized the potential in China, “China has all the ingredients: mountains, snow, people, and economic enrichment…It would be a big mistake not to be there.”6 Japan Japan was the world’s second-largest skiing nation. The industry had its initial impetus from World War II post-occupation troops; further impetus from its first medal for skiing – a silver awarded at the 1956 Winter Olympics; and a 1987 hit romance movie featuring skiing. Especially because of the growth in the 1980s the country’s industry had been described as a “fad”. The industry had experienced a significant boom during the 1980s, but the number of skiers in the country had then dropped by a third from the early 1990s to 2005 as indicated below:

Lift tickets

1992/93

2004/05

18M

13M

Pairs of skis sold 2.5M (the peak) 500K Snowboarding had been virtually non-existent in the early 1990s, but by the early 2000s made up about one third of the ski tickets sold. The difficulties were attributed to a number of factors including: o Continued economic stagnation o Aging population (skiing appeals to young people) o Memories of mandatory ski trips during high school in which applied discipline from chaperones made the experience unpleasant. o Japanese youths’ addiction to electronic games via mobile phones and computers --- purchase of which used up money that this segment could use to buy ski equipment or engage in skiing.

There were 718 resorts in the country, but about half were essentially bankrupt. In addition, there were over 40 additional ski resorts in planning phase with local governments, plans that were difficult to impossible to cancel because of a 1987 economic development law. Only four of the existing ski resorts closed in the early 2000s. One deterrent to corporations closing ski resorts they owned was that the law required that companies that closed their facilities dismantle the lifts and replant trees. The expense was sufficiently great that companies simply elected to

9

continue operations. In some instances operators turned over the properties to local governments with the locals even more reluctant to close their facilities. Numerous innovative and significant price discounts had not been very successful at attracting customers. Some resorts had initiated new revenue streams from various means such as using coin meters wherever possible, e.g., on TV sets, ski-boot dryers, and mechanical massagers.

Like other parts of the world, Japan’s ski season was disrupted by various year-by-year events. The October 2004 earthquake in Japan resulted in cancellations of more than eight percent of the four million skiers expected in the area and new reservations dropped to nothing. The results for the country’s 2004/05 season was an estimated 10.9M ski population and 5.4M snowboarders --figures unchanged for several years. In January 2006 the snowfall in northern Japan was so great that travel options and ski lifts ran into difficulties.

Another sport that had experienced a significant boom in Japan in the 1980s and decline in the 1990s was golfing. In the golfing industry American firms had purchased as many as ten percent of the Japanese courses at steep discounts. The American firms put emphasis on attracting families and lowered fees to bring the golf facilities back to profitability. The Japanese skiing industry was emulating marketing moves that golf industry entrants had undertaken. Among their efforts were: •

Emphasis on young families with children, for example, child-care facilities



Innovative pricing techniques, for example, a discounted initial lift ticket or package with subsequent lowered prices for future visits or a “membership fee” entitling the holder to discounted prices and gifts.



Attraction of skiers from other nations, for example: o Australians: For Australians the cost of a Japanese ski trip was half that of a North American trip with the advantage of no jet lag o South Koreans: In South Korea there was an estimated four million skiers attempting to use the country’s 13 ski resorts, a phenomenon similar to that experienced in the country’s golf industry.

10

o Chinese: Many expected that China might be the next market for skiing in Japan as there was a current emphasis in China on selling Japanese ski goods. However, Japanese visa policies restricted Chinese tourists.

New Zealand Ski seasons in the Northern Hemisphere countries ran roughly from October to April while the season in the Southern Hemisphere countries was generally May to October. The first recorded skiers in New Zealand were Norwegian gold miners in the 1870s. Ski areas developed through (private) clubs on Crown (publicly owned) land where the clubs initially built Alpine huts to shelter skiers and later developed lodge accommodations for skiers and operated the ski area. The development was different than in the U.S. and Europe as a NZ ski association senior executive noted, “…the ski industry in North America developed at huge resorts where real estate has been an important part of the commercial set up. The areas in Europe where skiing is important today already had infrastructure in place because many of them were spa villages, which people visited for their health.”7

The sport grew the most during the 1960s. Commercial ski resorts began in the 1970s and by the early 2000s the commercial resorts accounted for 90% of skier visits. The New Zealand Snow Sports Council was established in the early 1980s and operated “councils” for ski areas, ski racing, and snowboarding. The ski areas council represented 14 commercial ski areas in the early 2000s. The latest posted statistics were 2001 (www.snow.co.nz) and highlights included: •

The 14 ski areas had 1.3M skier visitors in 2001.



The number of international ski visitors had grown from 15% in 1991 to 30% in 2001.



There were 13 ski areas during the 1990s.



Days open hovered in the low 1Ks in the 1990s (low point was 856 days) and then went up to about 1.4K in the early 2000s with the addition of the 14th site.



Number of visitors followed a similar pattern with the low point over the 1990s being 600K skier visitors in 1998.



Snowboarders accounted for about a third of the skier visits.



Snowboard imports had increased from about 500 boards in 1991 (with total of 11.8K sold) to 7.8K in 2001 (with total of 11.5K sold).

11

Ski area participants were looking forward to the 2006 season which had opened in June 2006 with the “best start…for a long while” with a storm that dropped abundant snow on the South Island mountains.

Australia Australia’s nine Alpine Resorts were located in the southern states of Tasmania, Victoria, and New South Wales. Generally there was a lot of competition between the states, especially between Victoria and NSW resorts. However, at the November 2005 Australian Ski Area Association (ASAA) meeting the entire industry focused significant attention on the effects of global warming. Under scrutiny was a 2003 report by Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) report partly funded by the ski industry in which the major finding was that by 2020 the resorts could lose 25% of their snow and by 2050 50%. The worst case scenario was a 96% loss of snow by 2050. The report underscored the potential effects on the ski industry of a well-known threat. In reaction to the unreliability of snowfalls resorts in recent years, Australian resorts had invested in snow-making equipment. They had also focused increasingly on environmentally friendly practices and policies including renewable energy, educating their guests to embrace sustainable practices, and lobbying government officials regarding greenhouse pollution issues.

A study released in mid-2006 by the National Institute of Economic and Industry Research (NIEIR) indicated that the Australia ski industry contributed AU$1.3M to the economy and provided over 17K jobs. However, the stagnation in the industry was demonstrated in the statistics from the early 2000s summarized in Exhibit 3.

12

Skier Days 2000 2005 Increase Ski Resort Capacities (riders/hr) 1986 2006 Increase No. of Resorts Reporting in 2006: 8

Tasmania

Victoria

NWS

Total AU

3K -

955K 847K

1,155K 1,182K

2,110K 2,032K

Negative

Insignificant

Negative

3.6K 4.4K 20%

72.2K 95.8K 25%

52.2K 83.2K 38%

128K 183K 31%

Source: Ski Industry Facts (http://www.asaa.org.au; accessed 8/1/06)

Exhibit 3. Selected Statistics for Australia

Russia Russia offered more than 100 ski areas, but many were small and old. However, the country offered “great snow and breathtaking peaks all year around… (with) a lot to offer skiers in this regard… (and) amazing ski opportunities regardless of the need for updated equipment.”8 The season extended from December through March with 24-hour skiing available as accessible as an hour and a half from Moscow. South America and Africa There were ski opportunities in both South America and Africa. South America’s ski resorts were primarily located in eastern Chile. For example, PowerQuest, an “Adventure Ski & Snowboard Tours (to) Chile & Argentina South America ski travel” company listed eight areas while SkiMaps listed 15. Western Argentina had five (Powderquest) to 11 (SkiMaps) where the Andes Mountains formed the boundary between the two countries. In addition, Bolivia had one ski area. Argentina’s winter delivered snow “…frequent enough to support a healthy ski industry in the southern mountains” and were unrelentingly cold but “not as harsh as Northern Hemisphere latitudes.”9

In Africa there were ski locations in South Africa, neighboring Lesotho, Kenya, and Morocco. South Africa’s May-September snow season made skiing possible in a few areas. Ski clubs had established facilities and membership starting in 1929. The South African National Snow Ski

13

Association (SANSSA) was formed in 1990. SANSSA was the officially recognized representative for the country in skiing issues. The organization was affiliated with the National Olympic Committee of South Africa (NOCSA), the National Safety Council (NSC), and the FIS (the International Ski Federation). It was difficult for SANSSA to plan and organize events because local snow conditions were unpredictable and recent snow seasons were simply described as “bad”. There were three ski resorts in the Eastern Cape Mountains plus one immediately over the border in neighboring Lesotho. “Tiffindell Ski which described itself as “In the Ben Mac ski area (and) the only ski facility south of Morocco was established in the Eastern Cape mountains in 1994 and had snow making equipment. Tiffendell hosted multiple national championships beginning in 1994.

Mount Kenya and Kilimanijaro were the two highest mountains on the African continent. They lent themselves to “ski mountaineering”, i.e., snow ski expeditions, rather than downhill/Alpine skiing. However, the glaciers of Mt. Kenya (5.1K meters or about 17K feet) had reportedly been “skied and snowboarded numerous times…”10

Morocco (in Africa’s Northern Hemisphere) had a short season extending from January perhaps through mid-March and two Alpine ski stations where snow was “somewhat guaranteed”.11 However neither ski area offered much challenge to above-average skiers. The country’s Atlas Mountains were maximum 4.3K meters (about 1K feet). Accommodations in most of the places accessible to skiers were “not more than hammocks”.12 One ski resort, Oukaimeden, offered a range of accommodations as well as lifts and ski rentals. A second ski area offered unreliable lifts --- but would-be patrons were advised that they could walk or rent a donkey to go up the slopes. The Moroccan Ski Federation was active and had celebrated some visibility for two or three skiers on the Moroccan National (ski) team. However, the Federation complained to the International Ski Federation (the FIS) about the lack of opportunity for smaller countries such as theirs to participate in the Olympic ski events as Moroccan entrants were judged not sufficiently skilled to qualify to compete.

The Opportunities and Challenges

14

The industry had just had impetus from the 2006 Winter Olympic Games in Italy --- an opportunity for the winners to herald the advantages of their various countries, regions, and the resorts with which they were affiliated. These entrants had to move quickly to exploit their recently enhanced visibility. Overall the industry’s entrants had to think through how they would confront the various challenges and opportunities. Endnotes 1

“World lift ticket study finds average price up 3% to 181.6 Euros”, SkiPressWorld, December 8, 2004 (http://www.skipressworld.com/eu/en/daily_news/2004/12/world_lift_ticket_study_finds_average_price_up_3_to_1 816_euros.html?cat=Snowlife; accessed 8/1/06). 2 Grace Lichtenstein and Craig Altschul (2005), “The industry report: For the mountain resort industry,” Mountain News, May 15 (www. ???; accessed 8/1/06). 3 “The Industry Report: For the mountain resort industry” (2004). Mountain News, December 22, 2004 (www…..) 4 “Skiing in China: An uphill climb” (2006), China Daily, July 31 (http://www.chinadaily.com.cn/english/doc/200602/10/content_518964.htm). 5 “Skiing in China: An uphill climb” (2006) China Daily, July 31 (http://www.chinadaily.com.cn/english/doc/200602/10/content_518964.htm). 6 “Skiing in China: An uphill climb” (2006), China Daily, July 31 m(http://www.chinadaily.com.cn/english/doc/2006-02/10/content_518964.htm). 7 Paul Titus (2004). “Ski industry based on pioneer spirit”. www.historic.org.nz/magazinefeatures/2004winter...; accessed 8/1/06. 8 Skiing in Russia: Russian skiing adventures” (www.russia.com/skiing/; accessed 8/3/06). 9 “Western Argentina (Salta, Jujuy, Mendoza, San Juan, Barioloche)” (http://www.intellicast.com/DrDewpoint/Library/1187/; accessed 8/3/06). 10 “Skiing the Pacific fing of fire and beyond: Mount Kenya” (www.skimountaineer.com/ROF/ROF.php?name=Kenya; accessed 8/1/06). 11 www.ifyouski.com/features/morocco/; accessed 8/3/06. 12 “Weird places to ski” (www.skifurther.com/; accessed 8/3/06).

References

Brooke, James (2005). “Japan’s Ski Industry Stumbles on Age and Economy,” New York Times, March 24 (www…..; accessed 8/1/06). Canadian market study released, SkiPressWorld, http://www.skipressworld.com/eu/en/daily_news/2005/05/canadian_market_study_released.html?cat=Finance; accessed 8/1/06). “Earthquake latest threat to Japanese ski industry,” SkiPressWorld, November 22, 2004 (www.???; accessed 8/1/06). Fyfe, Melissa (2005). Australia's ski resorts are investing in snow-making equipment as rising temperatures make natural falls more unreliable, November 18 (http://www.theage.com.au/news/general/icons-under-threat-thealps/2005/11/18/1132016933810.html; accessed 8/1/06). http://www.asaa.org.au/templates/asa/page/page_standard.php?secID=871; accessed 8/1/06)

15

http://destinations.thomson.co.uk/devolved/about-thomson/press/the-ski-industry-report-2006.html http://www.powderquest.com/; accessed 8/2/06 “Initiatives in Japan aim to kick start ski industry, SkiPressWorld, March 15, 2004 (www.???); “Japan’s ski industry is D.O.A. because of its ‘Aging-Society’ and dead economy” (2005). News 3yen, March 24, (news.3yen.com/.../ ; accessed 8/2/06). Lichtenstein, Grace and Craig Altschul (2005). The industry report: For the mountain resort industry, Mountain News, May 15 (www. ???; accessed 8/1/06). “New Zealand ski season kicks off with snow” (2006). Ski Resort News, Thursday, June 22nd (http://www.j2ski.com/ski_news/index.php/resorts/new-zealand-ski-season-kicks-off-with-snow/; accessed 8/1/06). “Rossignol opens subsidiary in Japan” (2003). SkiPressWorld, October 13 (www.????; accessed 8/2/06). Runckel, Christopher W. (circa 2000) “China’s Ski Industry,” Business-in-Asia.com, (www. ????). “Ski and snowboard statistics (in the New Zealand ski and snowboard industry (2001)”. (www.snow.co.nz; accessed 8/1/06). “Ski industry facts (for Australia)” (http://www.asaa.org.au/templates/asa/page/page_standard.php?secID=871; accessed 8/1/06). “Ski industry down under valued at $1.3 billion by new study” (2006). Daily News, June 22, (http://www.skipressworld.com/eu/en/daily_news/2006/06/ski_industry_down_under_valued_at_13_billion_by_ne w_study.html?cat=Finance; accessed 8/1/06). “Skiing in China: An uphill climb” (2006). China Daily, July 31 (http://www.chinadaily.com.cn/english/doc/200602/10/content_518964.htm). Skiing in Russia: Russian skiing adventures” (www.russia.com/skiing/; accessed 8/3/06). “Skiing the Pacific ring of fire and beyond: Mount Kenya” (www.skimountaineer.com/ROF/ROF.php?name=Kenya; accessed 8/1/06). “Ski maps” (http://www.skimaps.com/South_America_cat5.html; accessed 8/3/06). “Snow stops skiing in Japan” (2006). SkiPressWorld, January 27 (www.???; accessed 8/1/06). “The South African ski scene” (http://www.webpro.co.za/clients/ski/\; accessed 8/3/06). Titus, Paul (2004). “Ski industry based on pioneer spirit (2004). www.historic.org.nz/magazinefeatures/2004winter...; accessed 8/1/06. “The industry report: For the mountain resort industry” (2004). Mountain News, December 22, 2004 (www.????; accessed 8/3/06) “Weird places to ski” (www.skifurther.com/; accessed 8/3/06). “Western Argentina (Salta, Jujuy, Mendoza, San Juan, Barioloche)” (http://www.intellicast.com/DrDewpoint/Library/1187/; accessed 8/3/06).

16

“World lift ticket study finds average price up 3% to 181.6 Euros” (2004). SkiPressWorld, December 8 (http://www.skipressworld.com/eu/en/daily_news/2004/12/world_lift_ticket_study_finds_average_price_up_3_to_1 816_euros.html?cat=Snowlife; accessed 8/1/06). www.ifyouski.com/features/morocco/; accessed 8/3/06.

17