While the industry cranks up its multi-million dollar effort to “grow the sport” in the national market place, a less heralded effort in the international market place has begun to generate impressive results. SKI USA, the eight-year-old marketing program for developing this business, reports that some 288,000 overseas visitors skied in the U.S. in 1988. That does not include Canadian visitors, or Mexican overland visitors.
This figure, a skier specific one, represents a 24 percent increase over 1987. Overall visitor traffic increased 16 percent in 1988 and 17 percent in 1987, and is expected to cool off to a still solid six percent in 1989.
These figures are based largely on in-flight surveys conducted by the U.S. Travel and Tourism Administration (USTTA). This survey monitors the make-up and travel plans of passengers on incoming trips from overseas. The figures reflect two types of foreign skiers: 1) those who are coming to the U.S. specifically for ski vacations; and 2) those visitors who come on a business or general vacation trip and who ski one or more times in the course of that visit.
Apart from the USTTA data, indications from SKI USA’s travel partners (airlines, tour operators and U.S. travel officials) suggest that the ski vacation component alone will number more than 90,000 this season. This multiplies out to some $180 million in resort revenues, based on expenditure data.
Developing this market has been the role of SKI USA, an international marketing program administered for NSAA by Bernie Weichsel’s BEWI Productions. Individual resorts buy into the program — there are currently 11 members, representing 13 resorts, four eastern, the balance western — and are then featured in the travel promotions (ski shows, travel shows, tour operator presentations, advertorials etc.) in the various target countries.
The total promotional expenditure is currently in the $200,000 range, with an additional $50,000 estimated to be spent by individual resorts in pursuit of the overseas market. That means a total of a quarter million dollars being spent by the U.S. ski industry to produce what is probably between two and three hundred million dollars in revenues.
What does the long-term picture look like, projecting into the coming decade? Bernie Weichsel, president of BEWI Productions, and Derrik Sandberg, director of marketing, feel the foreign ski market in the U.S. will undoubtedly see growth, and that it will become more important as the economic growth rate in the U.S. slows, while those of other nations increase, or remain at a high level. However, they feel, it is unlikely that the U.S. will see the double digit foreign tourism growth experienced the last few years.
The primary foreign skier markets to the U.S. in the 1990s, they feel, will most likely be:
Canada: It is such a large market, it will continue to be most important, and will increase at a constant rate. This is one market, however, that is being pursued by individual resorts, or by regional marketing groups. It is not currently a SKI USA target.
Japan: This difficult market requires patience and significant investment to see results, though it is one of the most promising markets over the long run, and will increase significantly in the mid-90s into the late-90s. Other Pacific Rim countries may react similarly. Individual resorts like Alyeska, and regional groups like Ski Utah, are currently pursuing the Japanese market, and they will enjoy the benefits of having entered the market first. This can be illustrated with the present success of the established Canadian effort: they currently get a half of all Japanese overseas skier business.
U.K.: There will be a significant increase in skiers over the next few years, followed by a linear increase into the rest of the decade. This is a very enthusiastic and rewarding market.
West Germany: Continued increase in skier numbers, especially if snow conditions in Europe continue to be poor.
Mexico: Slow growth within the first few years, followed by a significant increase in skiers coming to the U.S.
Australia: Currently a strong market through tour operator bookings, it has almost reached its peak in significant skier visit growth. It will only increase at a marginal linear rate, but will remain a strong one.
Other important markets: all of mainland Europe, including Scandinavia, and given the startling political changes in Eastern Europe, it is not unreasonable to visualize a trickle starting from there by the end of the decade. Also, South America, with Brazil being the most important.
In looking at the future, Weichsel believes the case is clearly made for expanding the SKI USA program. “Derrik Sandberg’s research brings into focus and verifies what many of us have long believed: that the United States offers a ski holiday experience, East or West, equal to anywhere in the world, and at a comparable fair value. Also, that this can be marketed successfully to international travelers.”
Weichsel plans to expand into new markets; develop new collateral material, including more brochures and information in foreign languages; launch more aggressive trade missions; participate in additional overseas trade and consumer shows. To fund all of this, Weichsel expects to attract more participating ski resorts, now that he has the numbers to show.
“I think this next decade will give us some really exciting global marketing opportunities,” says Weichsel. “I hope our ski industry will work on it, and really internationlize our ski resorts, with foreign language signage, opportunities for foreign language instruction, and overall with an attitude that the foreign ski guest represents some of the most desirable and cost-efficient business that can be found.”
World Inventory of Skiers
The following table shows best estimates of active skier population. Estimates are rough, and in most cases cannot be documented.
| Country | No. of Skiers (000) | % of World Skiers |
|---|---|---|
| AMERICAS | [20,585] | [34.0] |
| Canada | 5,100 | 8.4 |
| Mexico | 2,905 | 4.8 |
| U.S.A. | 12,390 | 20.4 |
| Argentina | 80 | * |
| Chile | 60 | * |
| Other S.America | 50 | * |
| EUROPE | [25,900] | [42.7] |
| W. Germany | 5,500 | 9.1 |
| France | 4,700 | 7.8 |
| Austria | 3,000 | 4.9 |
| Italy | 3,000 | 4.9 |
| Norway | 2,500 | 4.1 |
| Switzerland | 2,000 | 3.3 |
| Netherlands | 1,300 | 2.1 |
| U.K. | 900 | 1.5 |
| Other Europe | 3,000 | 4.9 |
| ASIA | [12,000] | 19.8 |
| Japan | 12,000 | 19.8 |
| Others Asia | * | |
| OCEANIA | [1,128] | [1.9] |
| Australia | 888 | 1.5 |
| N. Zealand | 240 | |
| OTHERS (incl. Russia, E. Eur.) | [1,000] | [1.6] |
| TOTAL | 60,613 | 100 |
Visitors and Skiers — 1988
| Country | No. of Visitors (000) | % Who Skied | No. Who Skied |
|---|---|---|---|
| Total | 12,518 | 2.3 | 288,000 |
| Japan | 2,562 | 2.5 | 63,600 |
| U.K. | 1,828 | 3.1 | 56,700 |
| W. Germany | 1,153 | 3.9 | 65,000 |
| *Mexico | 1,055 | 2.6 | 27,400 |
| Australia | 337 | 4.8 | 16,200 |
| France | 619 | 2.0 | 12,400 |
| Italy | 356 | 0.9 | 3,200 |
| Brazil | 299 | 3.1 | 9,300 |
| Other S. Am. | 714 | 0.8 | 5,900 |
| Scandinavia | 447 | 2.7 | 12,100 |
| Belgium | 114 | 2.4 | 2,700 |
| Other Far East | 828 | 1.9 | 15,700 |
| Other overseas | 2,226 | 0.8 | 17,800 |
Foreign Markets — Some Strengths And Weaknesses Outlined
CANADA
Strengths
- More Canadians visit the U.S. than all other foreign nationals combined.
- Skier market growing in Canada
- Language (except Quebecois), convenience, proximity (more than 70 percent of Canadians live within 200 miles of the U.S. border).
Weaknesses
- Spend least amount per day of all major overseas markets.
- Spend least amount of nights per trip.
- Below average growth rate in trips and nights abroad.
JAPAN
Strengths
- Probably largest national ski population.
- Spend most per day ($129 average).
- High growth rate in trips to U.S. (above 20 percent) and in expenditure level.
- Japanese government encourages increased overseas travel.
- Japanese economy will continue to grow, and U.S. dollar will continue to weaken against the yen.
- Japanese develop destination loyalties; good repeat business.
Weaknesses
- Language difference.
- Slow developing market; no immediate return on investment.
- Spend fewer nights/trip (16) than most.
- Do not think of snow skiing as part of foreign vacation.
- U.S. snow skiing rated below that of other countries.
- More cautious than average traveler — aren’t easily convinced of new places, ideas.
UNITED KINGDOM
Strengths
- Solid projected annual growth rate: between 5.4 and 8 percent, 1990-99.
- Second biggest travel spenders worldwide by 1995 — surpassing U.S.
- U.S. is favorite long-haul destination.
- Common language.
Weaknesses
- Most Brits (95 + %) ski continental Europe.
- Brits ski Canada 2-1 over U.S.
- U.S. not seen as a safe place to visit.
WEST GERMANY
Strengths
- Fastest growing skier segment to U.S.
- By 1991, W. Germany forecast to surpass U.S. as No. 1 travel spenders in the world.
- Spend the most nights/trip (25).
- Deutsche Mark will continue to strengthen against U.S. dollar.
Weaknesses
- Language.
- Negative personal safety perception. Don’t think of skiing as “very important” in planning U.S. vacation.
MEXICO
Strengths
- Highest percentage of visitors saying skiing “very important” when planning a vacation outside Mexico.
- Proximity and accessibility.
- Mexican economy will grow.
Weaknesses
- Language.
- Spend less (though more than Canadians).
- Peso will continue to lose ground against dollar.
- Canada perceived to have better skiing than U.S.
AUSTRALIA
Strengths
- Same language (?)
- Highest percentage of visitors who ski in U.S. (6.1 percent).
- Skiers going overseas to ski show increased interest in N. American destinations.
Weaknesses
- Stagnant growth rate in trips and nights abroad.
- Australian dollar will weaken against the U.S. dollar.
