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The declining dependence of ski lift operators on natural snow conditions

Author

Listed:
  • Martin Falk

    (Austrian Institute of Economic Research, Austria)

  • Xiang Lin

    (Södertörn University, Sweden)

Abstract

This study tests for a structural shift in the relationship between revenues of ski lift operators and natural snow conditions. The analysis is based on time series data for the Swedish ski lift industry spanning from 1980 to 2017. Since 1970, snow depth in winter sport destinations has decreased markedly by about 5 cm per decade. Estimations based on the autoregressive distributed lag (ARDL) model show that revenues (in constant prices) of ski lift operators are significantly positively related to natural snow conditions, given the impact of relative prices and real GDP. However, ARDL estimations with rolling windows reveal that the sensitivity of revenues from ski lift ticket sales to variations in snow depth is declining over time. For the subsamples starting at the end of 1980s onward, revenues no longer significantly depend on natural snow depth. This is likely due to the implementation of adaptation measures such as investments in snowmaking facilities.

Suggested Citation

  • Martin Falk & Xiang Lin, 2018. "The declining dependence of ski lift operators on natural snow conditions," Tourism Economics, , vol. 24(6), pages 662-676, September.
    • Handle: RePEc:sae:toueco:v:24:y:2018:i:6:p:662-676
    DOI: 10.1177/1354816618768321
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    References listed on IDEAS

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    9. Pérez-Rodríguez, Jorge V. & Ledesma-Rodríguez, Francisco & Santana-Gallego, María, 2015. "Testing dependence between GDP and tourism's growth rates," Tourism Management, Elsevier, vol. 48(C), pages 268-282.
    10. 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.
    11. Marshall Burke & Melanie Craxton & Charles D. Kolstad & Chikara Onda, 2016. "Some Research Challenges In The Economics Of Climate Change," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-14, May.
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    Cited by:

    1. Martin Falk & Xiang Lin, 2018. "Income elasticity of overnight stays over seven decades," Tourism Economics, , vol. 24(8), pages 1015-1028, December.
    2. Marius Mayer & O. Cenk Demiroglu & Oguzhan Ozcelebi, 2018. "Microclimatic Volatility and Elasticity of Glacier Skiing Demand," Sustainability, MDPI, vol. 10(10), pages 1-14, October.
    3. Martin Falk & Robert Steiger, 2020. "Size facilitates profitable ski lift operations," Tourism Economics, , vol. 26(7), pages 1197-1211, November.
    4. Weiying Cai & Hui Di & Xingpeng Liu, 2019. "Estimation of the Spatial Suitability of Winter Tourism Destinations Based on Copula Functions," IJERPH, MDPI, vol. 16(2), pages 1-18, January.
    5. Ferrarese, Moreno & Loner, Enzo & Pulina, Manuela, 2021. "Demand, business profitability and competitiveness in the cableway system: A multidimensional framework," Research in Transportation Economics, Elsevier, vol. 90(C).

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