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Importance of early snowfall for Swedish ski resorts: Evidence based on monthly data

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  • Falk, Martin
  • Hagsten, Eva

Abstract

Since the early 1970s, Sweden has experienced an almost uninterrupted surge in demand for downhill skiing. However, from the 2009/2010 season, lift ticket sales have stagnated. With the use of monthly data, this study investigates the role of snow depth and economic factors in the demand for downhill skiing in Sweden. The empirical approach is based on a seemingly unrelated regression model, allowing snow conditions, but not economic factors to differ during the season. The estimates show that an early season increase in natural snow depth by 10 cm raises the growth rate of lift ticket sales by 9 percentage points in the same period. Further, the results indicate that downhill skiing is characterised by low income and price elasticities, implying weak impacts on demand for such changes. The price increase of lift tickets exceeds that of the inflation rate. The recent decline in demand might indicate changed leisure preferences.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:touman:v:53:y:2016:i:c:p:61-73
    DOI: 10.1016/j.tourman.2015.09.002
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    References listed on IDEAS

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    6. Martin Falk, 2015. "The Demand for Winter Sports: Empirical Evidence for the Largest French Ski-Lift Operator," Tourism Economics, , vol. 21(3), pages 561-580, June.
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    Cited by:

    1. Yan Fang & Yiyi Jiang & Chin-Hsun Ken Tsai & Binghao Luo & Ming-Hsiang Chen, 2021. "Spatial Patterns of China’s Ski Resorts and Their Influencing Factors: A Geographical Detector Study," Sustainability, MDPI, vol. 13(8), pages 1-16, April.
    2. David R. Perkins, 2021. "Thermal Environments and Visitor Attendance in Zoological Parks: Observations in A Humid Continental Climate," Journal of Tourismology, Istanbul University, Faculty of Economics, vol. 7(2), pages 195-225, December.
    3. Erik Haugom & Iveta Malasevska & Gudbrand Lien, 2021. "Optimal pricing of alpine ski passes in the case of crowdedness and reduced skiing capacity," Empirical Economics, Springer, vol. 61(1), pages 469-487, July.
    4. 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.
    5. 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.
    6. Steiger, Robert & Posch, Eva & Tappeiner, Gottfried & Walde, Janette, 2020. "The impact of climate change on demand of ski tourism - a simulation study based on stated preferences," Ecological Economics, Elsevier, vol. 170(C).
    7. 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).
    8. Martin Falk & Eva Hagsten, 2017. "Climate change threats to one of the world’s largest cross-country skiing races," Climatic Change, Springer, vol. 143(1), pages 59-71, July.

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    More about this item

    Keywords

    Swedish ski resorts; Snow depth; Snow in early and late season; Winter tourism; Demand for downhill skiing; Income and price elasticities;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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