Federal Relations
The crux of this issue is: Should those areas operating under permit on public lands continue to conduct their business in an open-competitive market, as hundreds of ski areas on private land do, or be required to conduct business with more regulations and restrictions imposed on them by government? Reasonable terms in any Lease are not objected to by area operators on government lands, and certainly the public has the right to expect the government to issue permits that will protect all parties concerned. But, we do object to any tampering with the price mechanism which could affect a return on equity investment, stifle competition or curtail the development of new facilities. NSAA has been deeply involved in this issue representing the collective views of the membership on Forest Service lands at the federal level in Washington.
Our Washington Council, George Hartzog, has been of invaluable assistance to us on these issues that are so vital to our industry. Hopefully, by continuing an open dialogue with government officials, we can work out our problems together and arrive at policies that are in the best interest of everyone concerned. One thing is certain — we have entered an era in the ski industry, rightly or wrongly, of increased government scrutiny. More than ever, NSAA must remain vigilant to protect the legitimate interests of our membership.
To Keep You Better Informed
As Executive Director of NSAA one of my important responsibilities is to keep the membership fully informed on the activities and work that is being conducted by their association. This is most important for unifyingian organization such as NSAA with members in 37 states and several foreign countries.
I have recognized for some time that we must improve our association newsletter, so that we are reporting to you on a regular monthly schedule in a professional way. Thus it is that the decision was made to expand our membership newsletter to “NSAA NEWS” starting with the December issue. I believe that this improved newsletter format is a major step forward in making NSAA a more professional ski-industry trade association.
Without adding another full-time person to the NSAA staff to handle our expanded membership communication service, we made the more practical decision to retain the part-time professional services of an outside firm to handle the assignment. All of the information and articles which appear in “NSAA NEWS” are under my strict editorial supervision to ensure NSAA control.
“NSAA NEWS” will never carry display advertising and in no way is the association in the commercial publishing business. Our sole objective is to communicate more frequently and effectively with the membership. We support the objectives of Ski Area Management as a truly in-depth professional commercial publication that continues to serve both suppliers and the ski areas so well. Ski Area Management is the only national publication that effectively carries a supplier’s advertising message to the ski area operators.
Economic Study
On January 1, the 1974-1975 NSAA Economic Analysis of North American Ski Areas was completed right on schedule and mailed to the participating ski areas. Professor Charles Goeldner from the University of Colorado, Ted Farwell, ski area consultant, and the NSAA Economic Study Committee under the direction of James Bartlett of Vail Associates, are to be commended for compiling the most comprehensive study to date on the ski industry in this country. Some of the highlights of the new Executive Summary in this year’s study are as follows:
The 1974-75 survey is the seventh economic report to the ski industry. The data represent ski areas possessing approximately 46.2 percent of the ski area capacity of the nation. If the balance of the areas had similar experiences, the ski industry accommodated 34 million skier visits, processed gross revenues of $405 million and provided payrolls of $91 million.
Profitability
Profits were up substantially (50.7 percent) over the 1973-74 season. However, a key measure, operating profit on GFA, was 11.3 percent — by any measure inadequate to compensate for the risk. Profitability while up over tQe past two poor snow seasons was still short of the 11.6 percent return on GFA recorded during the 1971-72 season.
Utilization
Average ski area utilization was 36.5 percent of available season capacity — up slightly from 35.1 percent in 1973-74. Actual skier visits were 9.9 percent higher resulting from a combination of a higher average utilization and a longer average ski season. Days of operation were up 7.4 percent from 121 in 1973-74 to 130 in 1974-75.
Revenue
Average revenue was up 17.9 percent due to both an increase in actual revenue per skier visit, from $6.76 to $7.10 and the increase in skier visits. Ski lift ticket prices were up 8.9 percent to an average weekend, all day, adult price of $7.94.
Expenses
Cash operating costs averaged $1.68 per skier capacity per operating day, up only 1.5 percent over the 1973-74 average of $1.65. Since most operators reported hourly wage increases averaging from 6 percent to 10 percent, this lower increase in cash operating costs indicates better cost control and higher productivity.
The Future of the Industry
“Terrific,” “Dynamic,” “Bright,” “Great,” and “Bleak” were the terms used by ski area managers as they responded to the question “How do you view the future of the ski industry?” Eighty percent were optimistic and their comments focused on the belief that skiing will grow, but at a slower rate; that the industry needs more aggressive marketing; that somehow costs to ski must be kept in line; and that nothing can replace a good snow winter. The pessimists (20 percent) mentioned the high costs of meeting environmental concerns, the high costs and future availability of gasoline, and the current wave of government intervention.
The tone of response was definitely up with even the negative responses recognizing the large untapped skier market potential. Many, including the optimists, are fearful of a cost-price squeeze that will keep profits elusive.
To receive a copy of the completed report contact NSAA or the Business Research Division of the University of Colorado, Boulder, Colorado 80309. The price per copy is $25.00.
NSAA Promotional Activities
The NSAA/Coca-Cola/USA “Introduce a Friend to Skiing” Program kicks off nationally on January 3-24, with participating bottlers pre-selling the program to the public. Close to 300 ski areas from coast to coast are participating in the two-for-one offer. When a skier purchases a lift ticket or lesson and turns in eight (8) proofs-of-purchase of Coca-Cola, his beginner friend will receive a lesson or beginner lift ticket free. Participating ski areas will honor the offer any three (or more) days during the sixteen day redemption period, January 24-February 8. The entire thrust of the program is to broaden the base of the skier market and get more people to try skiing.
As of December 1, Planned Communication Services, producers of the Buddy Hackett Public Service Announcement have notified us that the TV film clip has had 1,948 telecasts reaching an estimated 104,346,018 viewers. The TV skiing announcement is being aired by TV stations in 39 states. The viewer audience which will be exposed to this skiing message before the winter is over will be unbelievable. The project was under the auspices of the American Ski Federation, and funded by NSAA and SIA. The ski industry owes a big vote of appreciation to Buddy Hackett for donating his talent, and NSAA has extended an invitation to him to be the honored guest at the National Convention in May.
“Invitation To Skiing” may go down as one of the most successful ski film projects ever produced. To date 400 prints have been made and all are in wide circulation throughout the country. Through our TV agent, screening of the entire film has been scheduled on many stations in major markets and our film distributors, Modern Talking Pictures, have booked “Invitation To Skiing” with hundreds of schools and clubs from Augusta, Maine to Honolulu. Copies of the 24-minute 16 mm sound and color Warren Miller film can be purchased through NSAA. The purchase price for members is $100, and $150 for non-members. Production and distribution costs for the film were shared jointly by NSAA, SIA, and Coca-Cola/USA. This project was also designed to expose the general public to skiing with the objective of enticing them to try the sport.
Dues Are (Over) Due
We’re ten months into our current fiscal year. If you have not yet paid your NSAA dues, we would appreciate hearing from you soon. Look upon your dues as an investment in your business, as NSAA is effectively on the move and helping you. Ski areas that are not members but benefit from the many NSAA programs should consider joining to carry their fair share. Just drop us a line, and we’ll send you complete information.
The Broadmoor, Colorado Springs — Site of the 14th Annual NSAA National Convention and Trade Show
May 5 through May 8, 1976, are the dates for this year’s NSAA National Convention and Trade Show at The Broadmoor in Colorado Sprngs, Colorado.
Located in the heart of the Rockies, The Broadmoor is one of the outstanding resort-convention facilities in the nation. In fact, it is so outstanding that conventions have to be booked four to five years in advance. Few hotels in the world today come close to matching the regal setting, luxurious accommodations and diversified activity that are found at this vacationer’s paradise. There is tennis, three championship golf courses, swimming in two heated pools; ice skating at the World Arena where figure skating, speed skating, hockey, recreational skating and curling are conducted the year around; and skeet and trap shooting at The Broadmoor shooting grounds. Additionally the Cog Mountain Railway to the top of Pikes Peak and the Air Force Academy are just minutes away.
Commensurate with the facilities, the convention program will be the best in the history of NSAA. Professional speakers who are noted national authorities on motivation research, value programming experiences of age groups that provide valuable insight into understanding human behavior (a must for marketing managers); government regulations; environmental concerns; and how best to cope with these areas of concern will be just some of the topics covered that will make this convention a meaningful learning experience which will justify your investment to attend. Ski industry problems will be covered in depth and not to be overlooked is your opportunity to meet with fellow ski area operators from around the country to discuss ideas and problems of common interest. Robert Redford and Buddy Hackett have been invited to participate in our convention program and we will know in mid-March if their busy schedules will allow them to attend.
All business meetings, seminars, and the National Trade Show will be held in the Broadmoor International Center, with meetings and the Trade Show immediately adjacent to each other we will again have aperfect mix of all convention functions.
A mailing with complete convention details will be made to all NSAA Members in Mid-February. Non-members and all others connected with the ski industry are most welcome to attend this convention. Just call or write NSAA for complete information.
The relaxed atmosphere at the Broadmoor is an ideal location to unwind after a busy season. Combine business with a vacation and plan now to attend the 14th NSAA National Convention, May 5 — May 8, 1976.
