Despite back-to-back sub-par seasons, ski area operators were told their industry is in good shape. That good news, however, did not seem to get very far outside the confines of the meeting rooms.
Manufacturers exhibiting the latest in ski resort equipment and technology — from lifts, to snowguns, to hot chocolate — reported business was very slow and few areas were spending much money.
The show also marked the first NSAA convention since the merger of the ski areas association with the retailing and manufacturing branch of the industry, Ski Industries America. The merger — and NSAA’s place within the new United Ski Industries Association organization — contributed to the air of uncertainty that seemed to mark the mood of the annual get-together.
In many ways, the myriad of activities and social events resembled a three-ring circus with action going on simultaneously in three different arenas. From the hotel meeting rooms, to the trade show hall, to somewhere in-between, what follows is an overview of this year’s three-ring highlights.
Ski USA Tally
Many marketplace factors made last season a banner year for U.S. ski areas promoting to foreign skiers. The total influx was 90,000 skiers who spent approximately $200 per day plus airfare. The breakdown was:
- 30,000 Australia
- 20,000 Great Britain
- 10,000 Mexico
- 5,000 South America
- 5,000 Japan
- 20,000 Other countries
—J.N.
Meeting Highlights
Among some of the more interesting and pertinent observations to emerge from the many seminars and workshops were the following:
- Environmental affairs has become one of the top priorities of ski area operators everywhere in the country — for many the top. To address the challenges ahead, USIA will coordinate the industry resources available. These include the technical research already underway at American Ski Federation, public relations efforts by Cone & Co. and the probability of a political action committee.
- An examination of four environmental case studies — including a plan by Mt. Snow, Vt., to expand into black bear habitat — illustrated the value of a proactive environmental stance by ski areas. Other environmental programs undertaken by ski areas include toilets that recycle waste into compost; underground storage tanks and an interesting, comprehensive recycling program adopted recently by the Aspen Skiing Company.
- Insurance rates dropped last year for the first time in four years. Although the decline was very modest, the 1988-89 season marked the first time in three years that ski area profits exceeded insurance costs.
Asked if the insurance and liability crisis was over, USIA president David Ingemie replied: “I think there’s an overall feeling in this country that insurance liability costs have swung too far and are now coming back to the middle. That’s very good news for our industry.”
Environmental Proposals
The USIA/ASF Task Force on Environmental Affairs proposes wider industry education on environmental matters. Examples include:
- Environmentally preferable construction and operation practices.
- Programs to be utilized by ski industry members which enhance environment, such as trash recycling.
- Requirements of environmental laws and regulation.
- Positive environmental messages and appropriate strategies for effectively delivering those messages to the public.
- Utilization of environmental messages within existing communications and education programs such as amending the Skiers Responsibility Code to include a statement on the environment and inclusion of environmental themes and messages in brochures and promotional material.
— Joe Prendergast, President, American Ski Foundation
- In 1989, there were 2.5 reported accidents for every 1,000 skier days, compared to 7.7 per thousand in 1950. The legal affairs seminar was off-limits to reporters, but one comment to emerge was: “There’s good news out there.”
- Preliminary results from the 1989-90 ski season indicate there was a 5.9 percent drop in overall U.S. skier visits compared to last year. Other data pointing to lower beginner lessons, was withheld by USIA — a move that resulted in considerable criticism.
- Despite the well-documented and much-discussed “flat” rate of growth for the industry during the last decade, two industry experts reported that demand for skiing is increasing and will continue to grow. The apparent discrepancy between a flat growth rate and increasing demand was interpreted and explained in different ways by the two panelists.
1990-1991 Campaign Changes
Answering criticisms of this year’s Ski It to Believe It campaign, things promise to be different next year. Changes include:
- There will be a call to action 800-number with advertising messages about the program.
- The campaign launch will be later — November 19.
- There will be more emphasis on national television.
- The ski area planner kit will be out in July.
- Local promotions will be geared to a “Discover Skiing” theme.
- There will be more emphasis on the campaign in public relations material.
- Area marketers will receive more training in the use of Ski It to Believe It materials.
- There will be more communication about the program.
- Research will be expanded.
—J.N.
Dr. Charles Goeldner from the University of Colorado said that skiing participation is weather related. He looks at the industry by region and points out that in Colorado and Utah, particularly, skier visits have been steadily increasing. “There is no demand problem in skiing,” said Goeldner. “There is only a snow problem.”
Dr. Marvin Kottke of the University of Connecticut also noted the heavy influence of weather and snow patterns on skiing. But just as important, said Kottke, is the two-tiered nature of the ski area industry. At the big commercial ski areas, Kottke said, business has been increasing at a healthy 20 percent rate. But those increases have been offset by declines at small, community-sized areas.
Kottke also said that skiing does not have a demand problem, but rather a supply problem. For instance, poor weather can reduce the number of operating days at an area and nationally, thus reducing supply that year, which in turn affects participation.
Skier Accident Stats
When planning skier education and risk management efforts, ski areas should focus attention where it will do the most good. A review of recent accident statistics reveals this profile of skiers involved in accidents:
Most skiing accidents occur in the afternoon on “Easier” slopes to younger males using rental equipment. These 11- to 17-year-old beginner and novice skiers most often sprain their thumbs or knees.
A well-targeted skier education program focuses attention on this group by reaching them through the rental shop or by using one of the many techniques developed by NSAA in years past.
— Chris Stoddard, President, Mountain Management Services
- The record prices being paid by Japanese companies for American ski resorts should be viewed as an indicator of the overall strength of the U.S. ski area market.
- Three new skier education programs were introduced. They include the Institute for Ski Industries Studies for supervisory and management personnel, Ski Mechanics Tech Training Workshops for ski retail and rental shops and Flight Log, a skier educational video.
- Success in the form of “1.2 million new target skiers” was claimed for the national Ski It to Believe It program, based on research done by National Family Opinion.However, more than 50 percent did not try skiing again.
- Bill Lawliss of Sports Research outlined a new research program USIA wants to undertake in the 90s: A skier-day index and a retail sales index that would be compiled on a monthly basis.
Excellence in Marketing Awards
A new group of awards were distributed to ski areas that had created particularly effective campaigns to accompay the Ski It to Believe It program. The winners were:
- Sandia Peak, N.M. — Grand Award
- Ober Gatlinburg, Tenn.
- Swain/Bristol, N.Y.
- Mount Hood Meadows, Ore.
- Snow Summit, Calif.
— J.N.
Exhibit Highlights
The mood on the exhibit floor was considerably different from that in the seminar rooms. Although area operators were told the health of their industry was good, that news did not translate into buying activity on the trade show floor. The NSAA show is traditionally more of a window shopping exhibition than a buying show, but this show was particularly slow for both lookers and buyers, according to participants.
“It’s been very slow,” said one manufacturer. “We were told because it was being held in Boston, that a lot of eastern resorts would be sending busloads of people down. I don’t know where they are. We haven’t seen any busloads.”
Snowmaking booths seemed to have the most business. Wally Shank of Dendrite Technology, which unveiled new snowgun technology, reported people were standing “four and five deep” at times.
“We’re writing a surprising amount of business,” said Shank. “I thought I’d be here mostly to answer questions and explain the technology.”
Jim VanderKelen of SMI was another snowmaker who was pleased and he said so at an otherwise gloomy meeting of disgruntled exhibitors.
Other snowmaking booths also reported good traffic in sharp contrast to lift manufacturers, who reported very slow traffic. Few lifts are expected to go in this year at U.S. ski resorts and interest seemed to reflect that. Lift technology also has slowed after many rapid-fire advances in recent years. At Poma, Chairman Jean Pierre Cathiard said his company is concentrating on improving reliability and efficiency.
As a group, ski area consultants also seemed pleased by the business they did at the show, although some found the market very price conscious.
Merger Highlights
David Ingemie, former president of SIA and now head of the newly combined organization, admitted he was nervous before his keynote address Monday evening that officially opened the convention.
“I wanted to make sure the real me got across,” said Ingemie. “Since the takeover, there have been a lot of misperceptions about me.”
Among those false impressions, said Ingemie, was “the idea that I’m not approachable, I only know about the manufacturing side of the business, that I don’t listen. I wanted to get the right message and the right tone across.”
Ingemie’s address followed welcoming remarks by Massachusetts Governor Michael Dukakis. Ingemie then took the stage to rally the organization to action, saying it was up to members to make it succeed.
In an interview later during the week, Ingemie denied small ski areas will be lost in the new, larger organization. “My roots are in small areas,” said Ingemie, who started his ski career at Wachusett Mountain in Massachusetts. “I intimately understand what a small area goes through.”
Ingemie noted smaller areas may have to be more resourceful than bigger resorts in identifying and holding onto their markets, but added, “small areas have a major role — not minor — in creating and developing new bases of skiers.”
B77 Compliance
The revised ANSI B77.1 Standard was approved March 26, 1990 and will be published in early September. The question many ask is: when must we comply with the new standard?
The National Tramway Standards Board, which oversees the activities of the ANSI B77.1 Committee, recommends that authorities having jurisdiction accept the Standard one year after the approval date — March 26, 1991. This is a recommendation and cannot override what the various states choose for an effective date or what state laws determine is the effective date and mandatory compliance date.
Some state tramway laws automatically adopt and make it law when the Standard is approved. In such states, the 1990 B77.1 was approved and became law as of March 26, 1990. Other states go through the adoption procedures, usually with public hearings, and usean effective date one year or more after the approval date.
Of interest is that a few states were aware of the upcoming changes and adopted some of them a year ago. These changes would be mandatory immediately in those particular states.
But operational and maintenance requirements are mandatory for both new and existing equipment. Here is where the effective date becomes most important. Many ski area managers simply adopt the operational and maintenance requirements immediately following the approval date and are thus in compliance with the new ANSI B77.1 Standard with upcoming 1990/91 ski season. An excellent practice and one that is highly recommended.
A more complicated question is: If I am buying a new lift or relocating an existing lift this summer, should I meet the old Standard or meet the new Standard? This is a question that is best answered by local authorities, lift designers and suppliers and yourself. Some authorities or laws require immediate compliance but if done in the past, compliance would not be required until next year.
To help in determining compliance, ask yourself: Do I want a year-old lift next season that is outdated and does not meet the new Standard?
As with all the past editions of the ANSI B77.1, area managers must evaluate the changes and their existing equipment to determine when and if they will comply with the latest edition.
— Leroy Schultz, P.E., Senior Engineer, Kendall Insurance, Inc.
As for the show, Ingemie noted that interest was bound to be down after two sub-par seasons in a row. But he said a much more complicated buying process was also a factor. “It’s much more complex to buy something in business today because you have so many choices; so many options,” he said. “This show is only one piece of that total buying and selling cycle.”
Not one member of the NSAA staff in Springfield, Mass., is going to work in the new USIA organization to be headquartered at the former SIA offices in McLean, Va. During the week, Ingemie was pressed repeatedly about the organizational setup and ski area contacts in the new organization.
“The void will be filled,” insisted Ingemie. “We have all their files from the Springfield office and we will learn about these things just like they learned.”
Banquet for Conniff
It was an evening like none other in the history of the NSAA — black tie affair in every sense of the word. They all came to honor me with an evening of “roasts and toasts” on my retirement.
Jim Branch, my good friend for many years, was the MC (I guess he was chosen because he had more on me than anyone else). A video review of my life was shown on two huge screens — my skiing career from early childhood and all the fun times over the years with NSAA — and many familiar faces.
Champagne was poured for the hundreds of people in the ballroom and they all rose to toast me. Let me tell you, the lump is still stuck in my throat just thinking about that special moment.
Jerry Groswold presented me with two round trip plane tickets to Europe and a sizeable check for spending money, all of which was donated by friends throughout the industry. So I could record my travels, Channing Murdock gave me a video camcorder from the NSAA past presidents and chairmen. The NSAA staff presented me with several “wild gifts” to enjoy in retirement.
What impressed me so much was all of the people who came to wish me well, many I had not seen for several years. To everyone I again wish to extend my sincere thanks.
— Cal Conniff
Cover-up Controversy
Controversy about a “Cover-up” swirled around the Boston convention, and is still swirling around at presstime. It started with the figures generated by research economist, Dr. Marvin Kottke, who annually conducts an end-of-season survey that reports on skier visits, lessons and beginner lessons. In the past, the preliminary figures were released at the open meeting of the Economic Study Committee.
| No. Rptg. | Skier Visits per Ski Area | % Change From Previous Season | |
|---|---|---|---|
| NORTHEAST | 52 | 128,827 | 6.1 |
| SOUTHEAST | 28 | 82,299 | -16.0 |
| MIDWEST | 32 | 58,465 | .3 |
| ROCKY MTN. | 29 | 200,476 | -4.7 |
| PAC SW | 16 | 179,388 | -12.8 |
| PAC NW | 13 | 125,170 | -25.8 |
| TOTAL U.S. | 170 | 124,620 | -5.9 |
| 1989-90 | 1988-89 | 5 Year Average | |
|---|---|---|---|
| Ski Lessons – Total | -1.9 | 5.9 | 6.8 |
| Ski Lessons – Beginners | -12.5 | 7.3 | NA |
| Season Passes – Sold | 0.0 | 12.5 | 9.4 |
| Days Open | -3.6 | 3.7 | -.6 |
| Night Skiing – Attendance | 0.0 | .9 | 2.2 |
| Snowfall | -1.1 | 7.4 | -4.4 |
| Snowmaking – Acreage | 5.3 | 10.2 | 8.6 |
| Lift Capacity – (VTF/HR) | 3.8 | 5.1 | 6.0 |
This year, Dr. Kottke gave his report, but the customary handout was not made. When Waterville Valley’s Tom Corcoran asked where the usual beginner lesson figures were, he was told they were being “reviewed.”
It seems that the Economic Study Committee had, indeed, received the preliminary Kottke figures, but a staff decision was made to withhold them because the 12.5 percent decrease they predicted for beginner lessons conflicted with the increase USIA was planning to report as the centerpiece of its “Ski It To Believe It” presentation. These figures had come from an internally-generated USIA mail survey of 225 areas, 68 of whom had replied, with 53 percent showing increased beginner lessons, 18 percent showing the same and 29 percent showing decreased beginner lessons.
Several committee members felt that if the discrepancy required that numbers be withheld, it should not be the Kottke ones, which were based on methodology and research that was long-standing and was approved by them.
USIA later released the Kottke data, but without the offending beginner lesson numbers.
A sequel to the affair is that the last assignment from Marketing VP Art Currier to former NSAA staffers, John Cossaboom and Susan Galipault, was to conduct a phone survey of areas to get still more data on last season’s beginner lessons. This study is expected to show that where weather conditions were disastrous, areas suffered decreases in beginner lessons regardless of how hard they promoted; but where skiing was adequate or good, the areas promoting beginner business showed increases; those that didn’t, didn’t.
At presstime, Dr. Kottke’s preliminary data remain the research of record. Presumably, when the final report is issued by USIA, it will include the final data on beginner lessons—believed to be in the range of 9-10 percent down.
— D.R.
