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A survival analysis of ski lift companies

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  • Falk, Martin

Abstract

This article investigates the factors influencing the survival of 244 ski lift operators in Austria over the period 1995–2011. Both Cox proportional hazard and competing risk models with time-varying covariates are utilized to distinguish between ski lift operators that temporarily suspended operations (e.g. due to insolvency) and those that permanently stopped their service. The results show that early adoption of snowmaking facilities led to a significantly lower risk of failure. Introducing snowmaking at later periods (i.e. from 2000 onwards) did not have a significant impact. Size, elevation of the ski areas, local competition, and regional effects also play a significant role in the survival of ski areas, but these factors cannot explain temporary failures. Surprisingly, the probability of permanent exits and temporary failures is independent of variations in snow depth at the nearest weather station. A lack of accommodation capacity and economic recessions lead to a higher risk of both types of failures.

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  • Falk, Martin, 2013. "A survival analysis of ski lift companies," Tourism Management, Elsevier, vol. 36(C), pages 377-390.
    • Handle: RePEc:eee:touman:v:36:y:2013:i:c:p:377-390
    DOI: 10.1016/j.tourman.2012.10.005
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    Cited by:

    1. Falk, Martin & Vanat, Laurent, 2016. "Gains from investments in snowmaking facilities," Ecological Economics, Elsevier, vol. 130(C), pages 339-349.
    2. Firgo, Matthias & Kügler, Agnes, 2014. "Detecting Collusion in Spatially Differentiated Markets," Department of Economics Working Paper Series 188, WU Vienna University of Economics and Business.
    3. Ying Wang & Lei Hua, 2020. "Birth influences future: examining discrimination against Chinese deputy mayors with grassroots administration origins," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-13, December.
    4. Trinh, Vu Quang & Seetaram, Neelu, 2022. "Top-management compensation and survival likelihood: the case of tourism and leisure firms in the US," Annals of Tourism Research, Elsevier, vol. 92(C).
    5. Aurélie Corne & Olga Goncalves & Nicolas Peypoch, 2020. "Evaluating the performance drivers of French ski resorts: A hierarchical approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 389-405, April.
    6. Rashidi, Taha H. & Koo, Tay T.R., 2016. "An analysis on travel party composition and expenditure: a discrete-continuous model," Annals of Tourism Research, Elsevier, vol. 56(C), pages 48-64.
    7. Jordi Moreno-Gené & Laura Sánchez-Pulido & Eduard Cristobal-Fransi & Natalia Daries, 2018. "The Economic Sustainability of Snow Tourism: The Case of Ski Resorts in Austria, France, and Italy," Sustainability, MDPI, vol. 10(9), pages 1-20, August.
    8. Mayer, Marius & Steiger, Robert, 2013. "Skitourismus in den Bayerischen Alpen: Entwicklung und Zukunftsperspektiven," Arbeitsberichte der ARL: Aufsätze, in: Job, Hubert & Mayer, Marius (ed.), Tourismus und Regionalentwicklung in Bayern, volume 9, pages 164-212, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    9. 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.
    10. Patricia Aranda-Cuéllar & José María López-Morales & María Jesús Such-Devesa, 2021. "Winter tourism dependence: A cyclical and cointegration analysis. Case study for the Alps," Tourism Economics, , vol. 27(7), pages 1540-1560, November.
    11. Thomas Bausch & Andreas Humpe & Stefan Gössling, 2019. "Does Climate Change Influence Guest Loyalty at Alpine Winter Destinations?," Sustainability, MDPI, vol. 11(15), pages 1-22, August.
    12. Firgo, Matthias & Kügler, Agnes, 2018. "Cooperative pricing in spatially differentiated markets," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 51-67.
    13. Antónia Correia & Jaime Serra & Andrés Artal-Tur, 2017. "Steady tourists’ relationship with a mature destination," Tourism Economics, , vol. 23(4), pages 803-815, June.
    14. Kemal Türkcan & Hilal Erkuş-Öztürk, 2020. "The impact of economic and political crises on the survival of tourism-related firms: Evidence from Antalya," Tourism Economics, , vol. 26(7), pages 1152-1174, November.
    15. Martin Falk & Robert Steiger, 2020. "Size facilitates profitable ski lift operations," Tourism Economics, , vol. 26(7), pages 1197-1211, November.
    16. Beaudin, Laura & Huang, Ju-Chin, 2014. "Weather conditions and outdoor recreation: A study of New England ski areas," Ecological Economics, Elsevier, vol. 106(C), pages 56-68.
    17. Martin Falk, 2015. "Returns to investments in new ski lifts: the importance of weather conditions and elevation," ERSA conference papers ersa15p1379, European Regional Science Association.
    18. Martin Falk & Robert Steiger, 2018. "An Exploration of the Debt Ratio of Ski Lift Operators," Sustainability, MDPI, vol. 10(9), pages 1-16, August.
    19. Ruggero Sainaghi, 2015. "Il controllo dei costi nelle imprese funiviarie," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(2), pages 315-338.
    20. 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.
    21. Zach, Florian J. & Schnitzer, Martin & Falk, Martin, 2021. "Product diversification and isomorphism: The case of ski resorts and “me-too” innovation," Annals of Tourism Research, Elsevier, vol. 90(C).

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