White stuff turns to green: Vermont ski industry optimistic

Vermont Business Magazine, Feb 01, 2003 by Edelstein, Art

The ski business is not easy to operate even in a very good snow year.

"It's expensive to operate," said Stenger. "The biggest expenses are utility costs due to snow making, and insurancerelated costs."

Jay employs 420 in winter, 60 in summer. Stenger said the area was "close to groundbreaking for a golf facility for our four season future."

"What's going on in the Vermont ski industry reflects the country," he noted. "There is a population that is maturing and the challenge we have is to get our customers to ski frequently enough that they are excited about the sport and adopt it as their winter recreation.

Stenger said this requires a minimum number of days they ski. The better you ski the more you like the sport and the more a devote you become. You have to ski six to eight times a year. That is an issue of affordability and access."

Stenger said there are pronounced segments of the ski industry and each. needs to be marketed to directly. They include the baby boomers age 35-54 and their teenage children, the senior market

over 55 and their children and young skiing families.

"The industry markets aggressively to these markets. We've got targeted campaigns for each market," he said. "The big challenge we have to do better is to teach the people who don't ski but

could to get into the sport. We have to be much more aggressive and user friendly to that beginner skier," said Stenger.

According to him, only 10 percent of the population has ever skied. Another 15 to 20 percent "live close enough and might try it if they were invited."

"Minority populations are terrific targets for us," said Stenger. "We need to invite them to be skiing the same as anyone else. We need to do more of promoting that in the minority areas."

The industry does advertise in Black publications, he said.

Last year Okemo Mountain in Ludlow owner Tim Mueller tried to buy Steamboat Springs Ski and Resort area in Colorado from American Ski Co.

"They breached the contract and would not close," said Mueller. The sale price was $87.5 million.

"We thought it offered opportunities for our company," said Mueller. He heads Triple Peaks Inc, formerly Okemo Mountain Inc, which also own Mt Sunapee in Newbury NH.

Okemo sued American Ski Co.

"The issue became what remedies were available. They felt it was limited to $500,000 liability, and we felt the remedies were specific performance to force them to go ahead with the deal."

The judge in the case recently issued a decision in favor of American Ski Co. and Mueller's company gets $500,000. "Which doesn't cover our cost," he said. He does not know whether he will appeal.

Okemo averages 570,000 to 580,000 skier visits, second in the East to Killington.

"Things from the regulatory process has been difficult to keep up," said Mueller of the problems facing the industry. He also believes more should be invested by the state in the travel and tourism budget.

"We don't compete with other states. We need to pay attention to advertising and legislative tax policy," said Mueller.