Tariffs Top the List

Resort leaders see tariffs as a reason for caution with potential for broad impacts, depending upon the level at which they remain in place, and for how long. 

Reacting to the sweeping tariffs announced April 2, which were partially paused days later, a senior leader at one resort ownership group said, “The recently imposed tariffs are going to put pricing pressure on everything from chairlifts to snowmaking equipment, snowcats to uniforms, and rental fleets.” 

“We are already seeing tariff surcharges and receiving memos from vendors that prices will likely be increasing significantly,” added one New England GM.

“Tariffs will impact all operating expenses and will be significant with capital purchases,” warned an industry insider. “Most resorts will defer capital decisions. ROIs will become smaller in the short term.” 

Several resorts reported either accelerating orders ahead of tariff implementation or pausing capital plans to see how policy evolves. “We took delivery of some of our imported products in early March to avoid tariffs,” said a New England GM. “We are also delaying some orders to see if the current tariffs will be reduced or eliminated.”

Suppliers are feeling the strain, too. “While running a resort in times like this is challenging, I’m also concerned for our partner suppliers. We need them to be healthy,” said one Western Canada GM. “They are concerned as well about their business model with all the uncertainties with inflation, margins, and supply chain disruption.”

Some folks are optimistic the current tariffs represent only short-term pain. “Tariffs are a wild card … but I’m hopeful the dust will settle long before we’re making our next round of major capital decisions later this fall,” said a Midwest GM.

Staffing and Immigration

Staffing and immigration policies are also top-of-mind. The uncertain fate of J-1 and H-2B visa programs could deeply impact seasonal hiring.

“The J-1 program is important to us,” said a Midwest resort owner. “We’re watching closely and discussing alternatives if we were to lose it.”

“One key team member faced a more rigorous H-2B visa renewal process, and I anticipate that this will become more challenging,” noted a Mid-Atlantic operator. “While J-1 visas have improved, issues in working with the IRS and SBA persist, requiring increased patience.”

Rising insurance premiums and wage expectations have added to the pressure, said several operators. 

“Labor costs will be a focus of all size resorts,” suggested one industry leader, “and I would assume expense management will be a mantra.”

Consumer Behavior

Despite economic jitters, skier demand and loyalty are strong. Some resort leaders were confident that guests will continue to prioritize outdoor recreation.

Looking ahead to summer, one multi-resort owner said, “Despite daily news of change and upheaval, I believe there will be a strong travel season with drive vacations. … Outdoor recreation will remain strong.”

While the market reacted strongly to yo-yoing tariff levies, one Midwest operator said, “I’m not rattled. Our ticket sales skip most of that noise, and I’ve never hitched our operational outlook to Wall Street’s rollercoaster.”

Still, many operators saw market fluctuations as cause for concern. “Some of our guests have expressed that they are nervous about their jobs and the losses in the stock market, and they are less willing to lock in their pass and vacation purchases right now,” said a New England GM.

“This is a time of great uncertainty. Consumer confidence will decline significantly,” said a Southwest operator. “Season passes and advance purchases on lift tickets are vulnerable.”

“This administration has caused chaos and confusion, which creates a lack of confidence, which may result in people rethinking recreational activities,” echoed a New England GM.

Others were less wary. “In general, I think the economy will improve—interest rates will head downward; employment will be less overheated; leisure travel will be stable, although be more drive-to and less air travel,” said a multi-resort owner.

One industry leader noted that regional resorts historically do better during economic downturns, adding, “My sense is families with stable employment and high income will continue skiing at their preferred destinations. Families with less disposable income will stay closer to home, but midweek visitation will soften at all categories of resorts.”

Forest Service Concerns

Resorts on federal land pointed to changes at the U.S. Forest Service (USFS) as another source of uncertainty.

“USFS approvals are on hold as everyone waits and sees what the effects of the new administration will be,” said a Southwest GM. “Some are optimistic about the changes in Washington and how it may change the NEPA process. But, that’s a year away.”

“The USFS is in total chaos, as is every Federal agency,” added a multi-resort owner. “The USFS must find a way to do more with less. Personnel on the ground is a priority. … NEPA reform, which will be a very significant process, [could] equate to increased capital spending.”

International Outlook

In Canada, the weaker Canadian dollar is attracting U.S. visitors, but cross-border political tension and economic headwinds were still a concern.

“There’s a big ‘Buy Canadian’ sentiment currently,” said one Western Canada resort leader. “We’ve canceled a few U.S. soft goods orders and made changes to our F&B offerings.”

Another sees opportunity in the exchange rate: “Canada remains an attractive, cost-effective, and high-quality experience... particularly for West Coast and Midwest U.S. markets.

“If currency shifts make Canada more attractive as a place to earn and live,” the operator added, “we will continue to see a larger pool of seasonal international workers looking to come here. That would be a welcome development.”

Several leaders noted the likelihood of a continued softening of travel from Canada into the U.S., and reduced interest from other international groups.

“European and Canadian travel to the U.S. is expected to fall substantially, which will impact destination resorts and those situated close to the border,” said a multi-resort exec.

“Anecdotally, we saw less Mexican tourists this spring,” added a Southwest operator.

Proven Resiliency 

Challenges aside, several said the industry remains resilient.

“The economic forecast is murkier, but we have timing on our side to get through the summer,” said one resort group leader, adding, “The industry is resilient and will manage through this. Snowfall is always the X factor.”

“We offer what people want, particularly in tough times,” said a Western Canada operator. “We are an escape from the stress life is otherwise dishing out.”

The months ahead may bring more policy shifts and economic changes. “Things are incredibly volatile right now, and it is difficult to decipher everything we are reading. Time will tell the effect some of these policies will have, and even which ones will be enacted,” said a multi-resort owner.

So for now, the industry is bracing for whatever might come and aiming to remain flexible.

“In our current climate, accepting what we cannot change while focusing on what we can is crucial,” said an industry leader. “Though adapting won’t be easy, resilience will see us through, as it always has.”