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Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria

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  • Damm, Andrea
  • Köberl, Judith
  • Prettenthaler, Franz

Abstract

The prospects of increasing temperatures, a growing frequency of snow scarce winter seasons and rising energy prices raise questions about the future profitability of snowmaking. Therefore, we carry out a cost–revenue analysis of snowmaking based on projected daily snowmaking hours and visitor numbers until 2050 for a case study site in Austria. The results show that ski area operators are at risk of facing a substantial increase in total energy costs due to expected rising electricity costs, although the total amount of snowmaking hours is projected to slightly decrease because of shrinking feasible time for snowmaking (considering current snowmaking infrastructure). In the long run ski visitor numbers are projected to decline due to decreasing overall snow depths. Overall, the profitability analysis of skiing operations reveals that price increases in ski lift tickets, slightly higher than observed in the recent past, will be inevitable in order to keep skiing operations profitable in future.

Suggested Citation

  • Damm, Andrea & Köberl, Judith & Prettenthaler, Franz, 2014. "Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria," Tourism Management, Elsevier, vol. 43(C), pages 8-21.
    • Handle: RePEc:eee:touman:v:43:y:2014:i:c:p:8-21
    DOI: 10.1016/j.tourman.2014.01.009
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    References listed on IDEAS

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    1. Dawson, J. & Scott, D., 2013. "Managing for climate change in the alpine ski sector," Tourism Management, Elsevier, vol. 35(C), pages 244-254.
    2. Falk, Martin, 2013. "A survival analysis of ski lift companies," Tourism Management, Elsevier, vol. 36(C), pages 377-390.
    3. Jamie Sanderson & Sardar M. N. Islam, 2007. "Climate Change and Economic Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59012-0.
    4. Jarque, Carlos M. & Bera, Anil K., 1980. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals," Economics Letters, Elsevier, vol. 6(3), pages 255-259.
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    Cited by:

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    2. Lannoo, Karel & Thomadakis, Apostolos, 2020. "Derivatives in Sustainable Finance," ECMI Papers 29791, Centre for European Policy Studies.
    3. Falk, Martin & Lin, Xiang, 2018. "Sensitivity of winter tourism to temperature increases over the last decades," Economic Modelling, Elsevier, vol. 71(C), pages 174-183.
    4. Martin Falk & Eva Hagsten, 2019. "Climate zone crucial for efficiency of ski lift operators," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(6), pages 664-681, April.
    5. Falk, Martin & Hagsten, Eva, 2016. "Importance of early snowfall for Swedish ski resorts: Evidence based on monthly data," Tourism Management, Elsevier, vol. 53(C), pages 61-73.
    6. Rutty, Michelle & Scott, Daniel & Johnson, Peter & Pons, Marc & Steiger, Robert & Vilella, Marc, 2017. "Using ski industry response to climatic variability to assess climate change risk: An analogue study in Eastern Canada," Tourism Management, Elsevier, vol. 58(C), pages 196-204.
    7. Ciprian Ioan Rujescu, 2022. "Optimal Period for Winter Mountain Tourism in Romania," Sustainability, MDPI, vol. 14(7), pages 1-12, March.
    8. Robert Steiger & Eva Posch & Gottfried Tappeiner & Janette Walde, 2020. "Effects of climate change on tourism demand considering individual seasonal preferences," Working Papers 2020-08, Faculty of Economics and Statistics, University of Innsbruck.

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