Ski Industry Market Overview
When analyzing the ski industry, it’s important to gain an understanding of the market size and growth trends, as well as the concentration of market share.
Market Size and Growth Trends
The ski industry in Canada is measured to be worth $ billion, according to IBISWorld. Over the next five years, this market is expected to experience growth. This indicates that there are opportunities for expansion and development within the industry.
Market Concentration Analysis
In terms of market concentration, the ski industry in Canada is moderately concentrated. The top four companies in the industry generate a significant portion of the industry revenue. Specifically, these companies account for approximately of the total industry revenue, according to IBISWorld.
This level of concentration suggests that there is a notable degree of competition within the industry, particularly among smaller players. However, the market is still open to new entrants and there is room for growth and innovation.
Understanding the market size and growth trends, as well as the market concentration, provides valuable insights into the dynamics and potential of the ski industry. By staying informed about these factors, ski resorts and industry participants can make informed decisions and capitalize on emerging opportunities. For more detailed analysis and forecasts, you can refer to the full report from IBISWorld.
Ski Industry Trends in Canada
As the ski industry continues to evolve, it’s essential to stay informed about the latest trends and investment opportunities. In Canada, there are specific trends worth exploring, including investment opportunities in Switzerland and the impact of remote work trends.
Investment Opportunities in Switzerland
Switzerland has emerged as a promising destination for investment in the ski industry. According to EHL Insights, the country has experienced a surge in demand for reservations at ski resorts, restaurants, and other hospitality-oriented businesses. This increased demand presents exciting investment prospects for industry professionals.
Swiss ski resorts have implemented strategic marketing techniques to attract visitors, such as offering package deals like the “Magic Pass,” which allows skiers to access 30 resorts. These initiatives have proven successful in enticing guests and creating investment opportunities in the hospitality industry in Switzerland.
Investments in infrastructure at Swiss ski resorts, including new ski trails and high-tech lifts, not only enhance the guest experience but also contribute to rising property values in the area. This presents a smart opportunity for investors to increase guest visits and potentially benefit from the appreciation of property prices.
Impact of Remote Work Trends
The pandemic has brought about a significant shift in work culture, with an increasing number of people working remotely. This change has opened up new possibilities for individuals to work from anywhere with a good internet connection, including plush ski resorts in Switzerland. As a result, there has been a rise in longer stays at ski resorts, leading to increased revenue for the hospitality industry.
This trend has also created investment opportunities in the ski industry. The demand for long-term work-from-home opportunities in popular ski resorts has led to the reclassification of second homes in mountain ski areas as semi-permanent residences. This reclassification has attracted hospitality investors looking for attractive return rates.
The ability to combine work and leisure in picturesque ski resort settings has become a desirable lifestyle choice for many. The flexibility of remote work has allowed individuals to spend extended periods in ski resorts while still fulfilling their professional responsibilities. This trend has further solidified the investment potential in the ski industry, particularly in destinations that offer a high quality of life and scenic surroundings.
By keeping a close eye on investment opportunities in Switzerland and the influence of remote work trends, industry professionals and investors can make informed decisions within the ski industry. Understanding these trends allows for strategic planning and the potential to capitalize on emerging opportunities in the market.
Ski Industry Stats in the US
When analyzing the ski industry in the United States, it’s important to consider revenue and growth trends, as well as the decline in participation.
Revenue and Growth Trends
The American ski and snowboard resort industry experienced its two best winters in history in 2022-23, with a record of 65.4 million skier days and an overall market growth to 11.6 million participants, marking a historical high point. This growth was attributed to the exodus outdoors and the evolution of multiresort pass marketing programs (Sports Business Journal).
Western mountain resorts recorded record snowfall, such as 903 inches at Utah’s Alta ski area, contributing to a more than 10% growth rate since the pre-pandemic season. However, popular ski resorts have faced challenges with crowding, managing it through capacity control systems.
Although the COVID-19 pandemic had a significant impact on the ski industry, there are signs of recovery. The U.S. Ski and Snowboard Resort industry saw a 6.16% decrease in revenue in 2021 due to the pandemic, but it is expected to experience annual revenue growth of 6.7% in the years 2021-2026. This indicates the potential for growth in the industry despite the challenges posed by the pandemic. External factors such as travel and per capita disposable income play a crucial role in driving this growth.
Participation Decline Analysis
The decline in participation in snowboarding has been a notable trend in the ski industry. By the 2010-2011 winter season, snowboarding reached an all-time high with 8.2 million participants in the United States. However, by the 2012-2013 season, ski resorts were averaging 5 million riders. Snowboard sales peaked in 2008-2009 but dropped by around 25% in 2013. Overall, participation in snowboarding decreased by 28% from 2003 to 2013.
The 2010-2011 season ranked #1 for snowsports visits in the United States, surpassing 60.5 million according to the National Ski Areas Association. However, by the 2019-2020 season, which ranked #32 since 1978, snowsports visits had significantly decreased due to the COVID-19 pandemic.
These trends in participation highlight the challenges faced by the ski industry, particularly in attracting and retaining snowboarding enthusiasts. Understanding the factors behind these declines can help industry stakeholders develop strategies to address them and encourage renewed interest in snowboarding and other snowsports.
Impact of External Factors
The ski industry is not immune to external factors that can significantly influence its performance and resilience. In this section, we will explore two key external factors that impact the ski industry: economic downturn resilience and workforce dynamics and trends.
Economic Downturn Resilience
The ski industry has demonstrated resilience in the face of economic downturns in the past. An example of this resilience can be observed during the Great Recession in 2009. Despite the challenging economic climate, ski resort revenue in the U.S. actually rose by 2.3% from the previous year, indicating stability within the industry. While the ski industry is not immune to economic fluctuations, it has shown the ability to weather financial disruptions and adapt to changing market conditions.
Workforce Dynamics and Trends
The ski industry relies heavily on seasonal workers to operate effectively. Workforce dynamics and trends play a crucial role in the industry’s success. Despite uncertainties caused by the impact of COVID-19 on the economy, the American ski industry is likely to benefit from a strong seasonal workforce in the upcoming winter season. This workforce is expected to be composed of young people, including laid-off resort workers and recent graduates (Teton Gravity). These individuals may be more willing to take up positions in mountain towns out of necessity during these challenging times. This trend mirrors what was observed during the Great Recession, where many newly-unemployed individuals moved to mountain towns, leading to what was termed as ‘The Return of the Ski Bum’ by The New York Times (Teton Gravity).
The availability of a workforce that is willing to relocate and work in mountain towns is crucial for the smooth operation of ski resorts. It ensures that resorts can adequately staff their operations and provide quality experiences to visitors. The current economic scenario and the evolving job market dynamics may result in an increased pool of potential employees for the ski industry.
Despite the uncertainties brought about by the ongoing COVID-19 pandemic, ski resorts in North America are actively working on safe reopening strategies. Some resorts have already begun reopening, indicating a gradual return to operations. This resilience and adaptability in handling economic disruptions is one of the strengths of the ski industry.
Understanding the impact of external factors, such as economic downturns and workforce dynamics, is essential for stakeholders in the ski industry. By staying informed about these factors and adapting strategies accordingly, ski resorts can navigate through challenges and continue to provide memorable experiences to skiers and snowboarders.
Global Ski Industry Insights
Understanding the global ski industry is essential for skiers and snowboarders who want to stay informed about market trends and developments. In this section, we will explore the market size and economic impact of the ski industry, as well as the evolution of multi-resort passes.
Market Size and Economic Impact
The global ski industry holds significant economic value, with an estimated worth of $69.91 billion in 2020. This figure serves as a reminder of the immense impact the ski industry has on the world economy. The industry generates revenue through various channels, including ski resort operations, equipment sales, and tourism-related spending.
The economic impact of the ski industry extends beyond direct revenue. Ski resorts create job opportunities, support local businesses, and contribute to the overall development of mountain regions. Additionally, the industry drives tourism, attracting visitors from across the globe to experience the thrill of skiing and snowboarding.
Multi-Resort Pass Evolution
One notable trend in the ski industry is the evolution of multi-resort passes. These passes provide skiers and snowboarders with access to multiple ski resorts, offering convenience and flexibility. The introduction of multi-resort passes has revolutionized the way people experience skiing and snowboarding.
Multi-resort passes allow individuals to explore different mountains and regions with a single pass, providing a cost-effective and convenient option for avid skiers. These passes often include benefits such as discounted lift tickets, priority access, and exclusive perks.
The evolution of multi-resort passes has been driven by the management of investment capital and the financial strength of multi-resort companies. Acquisitions and mergers have played a significant role in expanding the offerings of these passes. For example, midsized companies have made acquisitions in different regions, allowing them to offer a broader range of ski resorts to passholders (Sports Business Journal).
The popularity of multi-resort passes has grown due to their ability to address the high costs associated with ski lifts and provide skiers with a diverse range of skiing experiences. Skiers and snowboarders can choose from a variety of pass options, ranging from regional passes to global passes, depending on their preferences and travel plans.
As the ski industry continues to evolve, it is important for skiers and snowboarders to stay informed about the latest trends and developments in the market. Understanding the market size and economic impact of the ski industry, as well as the evolution of multi-resort passes, can help individuals make informed decisions about their skiing and snowboarding experiences.
Ski Resort Property Market Analysis
When analyzing the ski industry, it’s important to consider the market for ski resort properties. This section focuses on the pricing trends in Canada and the demand and growth of ski properties.
Pricing Trends in Canada
In Canada’s popular ski regions, the housing market for ski resort properties has experienced some changes in recent years. From the beginning of 2023, there has been a modest year-over-year decline in home prices, primarily due to high interest rates and the rising cost of living. The median price of a single-family detached home in the country decreased by 0.7% to $1,068,200 in the first 10 months of 2023.
However, looking ahead, the Royal LePage Winter Recreational Property Report predicts a more positive outlook. It forecasts that the median price of a single-family detached home in Canada’s recreational ski regions will increase by 2.9% over the next 12 months to reach $1,099,661. This forecast is based on the expectation of stable interest rates or a modest decline (Newswire).
The pricing trends vary in different provinces within Canada. In Quebec’s popular ski regions, the median price of a single-family detached home increased by 7.8% to $501,600, while the median price of a condominium increased by 4.9% to $399,300 in the first 10 months of the year. The recreational market in Quebec is expected to see a modest increase of 1.8% in the median price of a single-family detached home over the next 12 months (Newswire).
In British Columbia’s popular ski regions, the median price of a single-family detached home decreased by 1.6% to $2,026,400, and the median price of a condominium decreased by 1.4% to $525,000 in the first 10 months of the year. However, the recreational market in British Columbia is expected to see a 4.1% increase in the median price of a single-family detached home over the next 12 months.
Ski Property Demand and Growth
Despite the challenges faced by the ski industry due to the global pandemic, there has been a significant increase in demand for prime ski properties in recent years. The desire for outdoor activities, fresh air, and open spaces has driven the demand for ski resort properties. Skiers and snowboarders are increasingly seeking the convenience of having a home near their favorite resorts, allowing them to enjoy extended stays during the winter season (Savills).
In Europe, the Alps remain the leading ski destination globally, attracting the highest number of skiers on average. Recent investments in the region have focused on improving ski resorts, such as the new connection between SkiWelt and KitzSki in Austria’s Tirol region and the €54 million gondola project in Vallée Blanche above Chamonix. These developments have further enhanced the appeal of ski properties in the European Alps (Savills).
The ski resort property market continues to evolve, influenced by various factors including economic conditions, lifestyle preferences, and market dynamics. Understanding the pricing trends and demand for ski properties is essential for investors and individuals looking to own a piece of the ski resort lifestyle.
