Cableways Impact Assessment Study - Final Report - saferail.nl

Risk & Policy Analysts
The industry in Switzerland appears to be significantly more fragmented with more
operators active in Switzerland compared to the other countries listed in Table 2.23.
Based on data from Table 2.8, each Swiss operator will have an average of 3.5
cableways. However, each Austrian operator will have an average of 11.8 cableways,
French operators 10.7 cableways, and Italian operators 6.4 cableways.
Although ski resorts are expensive to run, turnover for companies in the industry is
modest. It is estimated that the largest cableway operators will produce an annual
turnover of between €60 million and €70 million per year, medium sized will turnover
between €6 million and €12 million and small companies will turnover less than €6
million per year (FIANET, 2012). Small companies account for more than 50% of
the industry and it is estimated that >60% of small companies have less than 50
employees. The vast majority of small companies will, in reality, have a turnover of
less than €2 million per year (FIANET, 2012).
In order to maintain visitor numbers and remain competitive, operators must invest in
infrastructure (such as cableways). Ski resorts are primarily financed by sales of ski
passes which permit transport on cableways thus allowing access to ski runs. Ski
passes within highly developed resorts with multiple cableways and ski runs cost
between €35 and €40 per day (ECC-Net, 2010). However, not all ski resorts and
cableway operators follow the same economic model or are financed in the same way.
In Austria for example, the owners of hotels within resorts often also conduct the
cableway operation. As a result, income from hotels is used when investing in resorts
allowing Austria to reinvest €500 million in ski resorts every year (Actu Montagne,
2011). In France (which has a similar income from ski pass sales to Austria) an
estimated 25% of income from ski pass sales is reinvested in the ski resort each year,
however investment has fallen from €400 million in 2005 to €270 million euros in
2010 (Actu Montagne, 2011). Furthermore, in Sweden all ski lift developments (new
or replacement) receive some level of public funding. Operators are able to apply for
funds of up to 50% of the development costs; however, private companies must prove
that the development will benefit the area as a whole. Consultation has also
highlighted the importance of public support (in particular EU funds) for setting up
new ski resorts (which require cableway installations) in the Czech Republic.
How operators invest has changed during the past 30 years. Up until the late 1980s,
resorts invested in new cableways which increased the size of the resort and turnover.
Now, cableways operators invest in replacement installations which are more
technologically innovative, higher performance and more comfortable but may not
create a direct increase in turnover levels (Domaines Skiables de France, 2011b). In
2008 and 2009 Switzerland invested a total of €645 million in cableways installations
and related activities. This equates to an average of €387 million invested each year,
with the majority of this investment (42% per year) spent on replacement cableways
and only 6% spent on new cableways installations (Remontées Mécaniques Suisses,
2010).
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