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White stuff turns to green: Vermont ski industry optimistic
Vermont Business Magazine, Feb 01, 2003 by Edelstein, Art
With a new owner at the helm of the Bolton Valley Ski Area, new accommodations planned for the Sugarbush Ski Area, a strong market for Canadian skiers at Jay Peak among a variety of positive signs for the state's ski industry, the future looks good. Add a generally optimistic view of the chances for relaxation of stringent permit regulations with the new Douglas Administration in Montpelier and the Vermont ski industry is poised for a positive year and upbeat future.
It also doesn't hurt that the snow has been frequent and heavy this season, making for very high expectations that 2002-2003 will be a banner year on the slopes.
However, the industry does face longterm problems. It has a flat growth curve and must attract more skiers. This requires new thinking on the part of the operators and an increased marketing effort.
"The industry has been flat across the US for the past 10 to 15 years," said Bob Fries the new owner at Bolton Valley. He points to 54 million skier visits as the national total. He said there are 10 to 13 million active skiers in the country. In addition, he notes, the number of ski areas has been shrinking. In the 1960s, there were 1,400 ski areas. In the 1980s, that number had dwindled to 800 areas. Today, 500 ski areas operate.
"The pie is the same size, but divided into fewer ski areas, so. the areas that remain have seen growth," said Fries.
"In Vermont it has been the same and followed the national trend," said Fries. "Ski areas have gone out and the market has not grown at all."
"The industry is positioned to take advantage of a strengthening Vermont brand," said David Dillon at the Vermont Ski Areas Association in Montpelier. "If we can streamline the permit process so it isn't so costly to meet market demand, then the industry will thrive and so will the state of Vermont," he predicted.
Dillon represents 16 Alpine and 30 Nordic Ski areas. Last year the association recorded 4.15-million skier day visits to the Alpine slopes. Although down from 2000-2001 at 4.58 million skiers, the last three years have been categorized as "good."
"Alpine skiing is at a growing stage," said Dillon. "After a number of years of not growing as rapidly as we'd like to it's in a growth period. Considering the weather last year it was a good year for skier visits."
Dillon had just returned from an early January marketing visit to Manhattan where Killington snow makers made snow in Central Park, said several factors are needed for the ski industry to really blossom.
"If the state regulatory process can be streamlined somewhat, and if members of the Vermont Ski areas that have projects in the pipeline can get them built, we will have an expanded bed base and the amenities to attract people to Vermont."
Dillon did not take any pot shots at the 11 year Howard Dean Administration and its work with the industry. "We've had a very good relationship with the Dean administration," he noted. "Governor Dean was very supportive of the ski industry and understood the economic contribution of ski industry."
However, Dillon does not want to see business as usual when it comes to the permitting process. "There is a lot of duplication in the process and it is time consuming and costly," he noted.
"We're waiting to see what the new governor introduces for legislation," said Dillon. "We're looking to eliminate the duplication in time and expense. We do not want to change the criteria."
Vermont does not need to change the way it looks to attract a solid base of skiers, said Dillon. "We don't want to duplicate Utah and Colorado. We have mountains like Killington and Burke. As we get the message out it will bring people."
What is needed here to attract the skiers is the amenities that are found in the west. "We need resort type villages to satisfy market demand," said Dillon. In
ski areas like Stratton, Okemo, Killington, Jay Peak and Stowe, he said, "we need more bed base and slope side amenities. That's what brings some of the people in. The other attraction is natural Vermont features."
A look at several Vermont ski areas
Jay Peak near the Canadian border is doing well. President Bill Stenger has been here for 19 years. He is also Chairman of VSAA.
Jay draws half its skiers come from Canada, and two thirds of those come from the Province of Quebec, the rest from Ottawa and Toronto. "They are good destination markets for us," said Stenger.
One reason for the close alliance with Canadians is that Jay accepts the Canadian dollar at par from Canadian skiers. "If we didn't do it they wouldn't ski here," Stenger admitted. "They have many choices in Canada."
"A $53 full price ticket would be $80 Canadian and few would do that," he said. "My goal is to get people to ski frequently and affordability is important."
To offset the Canadian dollar discount, Jay offers Vermonters a special rate of $36 any day of the week, which is nearly the same price as the Canadian at par rate.
The area draws Vermonters from Orleans, Franklin and Chittenden Counties.
In 2001, there were 275,000 skier visits. "Our best year ever," said Stenger.