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The Development of Ski Areas and Its Relation to the Alpine Economy in Switzerland

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  • Pascal Troxler, Marcus Roller, Monika Bandi Tanner

Abstract

Cableways alleviate access to the Alps and were crucial in establishing the skiing tourism boom of the after-war years. Moreover, cableway operators employ a large share of residents, are complemented by tourism-related services and are therefore a key economic pillar in otherwise laggard regions. We exploit comprehensive historical data of all ever-built cableways in Switzerland linked to federal tax and population data to show how much ski area access benefits the municipality's economy. Evaluating difference-in-differences sheds light on how ski area access municipalities evolved economically compared to those without access. We find that opening a ski area between 1940 and 1980 is related to economic growth that persists until today. Particularly, it attracted new residents and created more productive employment opportunities in tourism-related services. Thereby raising incomes and tax revenues. Our results contribute to the debate of what economic risks access municipalities face once the decreasing snowpack forces a ski area to close.

Suggested Citation

  • Pascal Troxler, Marcus Roller, Monika Bandi Tanner, 2023. "The Development of Ski Areas and Its Relation to the Alpine Economy in Switzerland," Diskussionsschriften credresearchpaper44, Universitaet Bern, Departement Volkswirtschaft - CRED.
    • Handle: RePEc:rdv:wpaper:credresearchpaper44
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    File URL: https://repec.vwiit.ch/cred/CREDResearchPaper44.pdf
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    References listed on IDEAS

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    1. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    2. Konstantin Büchel & Stephan Kyburz, 2018. "Fast track to growth? Railway access, population growth and local displacement in 19th century Switzerland," CEP Discussion Papers dp1538, Centre for Economic Performance, LSE.
    3. Büchel, Konstantin & Kyburz, Stephan, 2018. "Fast track to growth? Railway access, population growth and local displacement in 19th century Switzerland," LSE Research Online Documents on Economics 88689, London School of Economics and Political Science, LSE Library.
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    More about this item

    Keywords

    Tourism development; regional economics; historical ski area data; climate change exposure;
    All these keywords.

    JEL classification:

    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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