UPPING THE ANTE
Has the industry focus on trial and retention already created a larger pool of participants? Last year’s strong showing, despite mediocre snow, weak economy, and terrorism fears, coupled with visits that are tracking at the 55-56 million for the current season, could indicate that the new definition of an average season is about 55 million visits. The growth in younger visitors, especially snowboarders, has been fueling the rise and contributed to the leveling off of the average age of visitors last season. And if this year’s growth in beginner lessons continues, the average season could grow to 60 million in 5-6 years. That type of growth would be remarkable indeed: the industry hasn’t seen growth rates like that since the 1960s.
THE UNITED COLORS OF SKIING
If California is any indication–and it often is–then the industry may succeed in reaching ethnic markets without really trying. If so, it will have a few enterprising resorts to thank for that. In SoCal, Mountain High’s well-publicized transformation from ski area to exurban skate park has transformed that area into a youthful, multi-ethnic playground. And the area’s converts are beginning to venture to resorts farther from home. In northern California, Boreal is serving much the same purpose. In the past few years, it has begun to introduce the Bay Area’s Asian-American, Middle Eastern, and Hispanic populations to snow sports via bargain-priced learn-to programs. Both California areas are small by the standards of surrounding areas, but their success in introducing new populations to winter sports could have a big impact on future growth, especially at Mammoth and Tahoe. Already, Mammoth is seeing what one spokesperson described as an “amazing” influx of Asian-Americans.
A DAY LATE AND . . .
Nearly six months after Vail Resorts voluntarily restated income from the sale of memberships to its private clubs, the Securities and Exchange Commission (SEC) has begun an investigation into the former accounting method for this revenue. Vail is fully cooperating with the SEC.
In October 2002, the Company restated and reissued its historical financial statements for fiscal 1999-2001. Its new auditor, PricewaterhouseCoopers, recommended that Vail record the income from memberships over the 30-year life of the club, not in the year the membership was purchased, a practice that Vail’s previous auditor, Arthur Andersen, had approved.
Vail has stated that its prior accounting treatment of the private membership initiation fees did not involve any impropriety on the part of company officers or employees. The company expects no changes will be made as a result of this SEC inquiry to the company’s historical financial statements, as contained in its October and December 2002 10K-A, 10K and 10Q SEC filings.
Doesn’t the SEC have bigger issues to pursue?
HARD TIMES, STRANGE BEDFELLOWS
As the Midwest’s early-season snow drought stretched through January, cross-country skiers were hard pressed to find snow. So Trollhaugen, Wisconsin, came to the rescue of local skiers. Starting in November, the area doubled its groomed and set tracks, running them across a few ski trails and opening to cross-country skiers from 7 to 9 a.m. As the drought stretched on, the area expanded its operations and all-day skiing, and invited local racing teams to practice and hold races there. “Troll Hollow,” the staff called it. Other areas followed Trollhaugen’s example and offered early-morning skiing to X-C types.
But none equaled Trollhaugen’s effort. The area sold about 100 season’s passes (at $59), and hosted about 10,000 cross-country skier-days, about 7,000 accounted for by high school teams. On several occasions Trollhaugen hosted races that involved 400 to 500 participants. “They were ecstatic that we offered this to them,” said Trollhaugen president Jim Rochford. It was certainly enough to get Trollhaugen thinking about expanding its X-C terrain this coming summer and jump- [continued — not in PDF]
