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Climate zone crucial for efficiency of ski lift operators

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  • Martin Falk
  • Eva Hagsten

Abstract

This paper investigates the efficiency of ski lift companies across different climate zones in a group of countries based on establishment data. By a joint estimation of the stochastic frontier production and efficiency equations, the results indicate that ski areas in subarctic climate zones are far more efficient than their counterparts in warmer zones. The presence of a large local market and elevation of the ski area are factors not relevant for efficiency. Output of ski lift operators (companies) increases with the length of ski runs, number of ski lifts, share of slopes covered by snowmaking facilities and availability of fast lifts. Productivity is also significantly higher for ski lift companies owned by a large conglomerate.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:rcitxx:v:22:y:2019:i:6:p:664-681
    DOI: 10.1080/13683500.2017.1297781
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    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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