Ski season not horribly affected by economy

Posted: November 20, 2010 in Uncategorized

With this weekend being the opening of ski season, many are wondering whether or not such a recreation-based business will survive these tough economic times.

However, an article on MSNBC.com says that ski enthusiasts have nothing to fear: Reports anticipate a good winter sporting season.

Jennifer Rudolph, communications director with Denver-based Colorado Ski Country USA, was quoted in the article saying that last year was the ski industry’s second best year on record. This year, many resorts are already reporting pre-sold season passes and early bookings.

However, it could be just the lowered room rates rather than an increased love of skiing. But who’s counting?

According to the article, U.S. ski facilities typically are large forces within their local economies. A recent report by First Intelligence says the “industry has about 400 companies that operate around 450 ski areas — with combined annual revenue estimated at $2 billion.” About two-thirds of the industry’s revenue is directly related to facility entrance and usage fees. The rest of the profits come from sales in merchandise, food and beverages, equipment rentals, and skiing or snowboarding lessons.

Still, where there are optimists, others are not so positive on their predictions for this coming ski season. Dr. Gordon Von Stroh is one of those people.

Professor of management at the University of Denver’s Daniels College of Business, Von Stroh said more and more people are tightening their wallets when it comes to luxuries like recreation. His biggest worry? The target demographic for skiing are people in their twenties. He said that among those who are hit by unemployment or struggling financially, it is the group of newly graduated students who tend to be low in cash.

As a fellow twenty-something, I can agree. I definitely won’t be emptying my wallet on the slopes. But who knows? Things seem to be looking up. Besides, the ski season will go extra long this year as Easter falls on the end of April.

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Comments
  1. First, I love the layout of your blog.

    And as for skiing, I think this could go either way. There will always be people who HAVE to go skiing each winter, just like the people who HAVE to go to the beach in the summer. There will always be someone who will still pay to go skiing.

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