Abstract
This study investigates the relationship between snow conditions and snowmaking investments for over 100 French Alps ski resorts. Investment trends represent a critical issue in capital-intensive sectors such as the ski industry. The data are based on snow reliability indicators and snowmaking investments covering 1997–2014. Descriptive statistics reveal that snowmaking has been the second investment item for ski resorts regardless of the elevation or ski resort size. The study finds that snowmaking investments are highly negatively correlated to snow conditions of the prior year for small and medium-sized ski resorts. Other factors are also likely to play a significant role in driving snowmaking investment dynamics.
Highlights
Winter tourism is an important industry in the European Alps
The aim of this study was to identify whether snowmaking investments in the French Alps resorts are affected by the ski resort size and the prior year natural snow conditions
We have used 4 estimators using a panel data set with 100 ski resorts in the French Alps, spanning several sizes and geographical settings
Summary
Winter tourism is an important industry in the European Alps. France ranks within the two top ski tourism destinations in Europe, depending on the year, with annually about 55 million skier visits (DSF 2017; Vanat 2019). In the French Alps, the share of tourism employment is almost 8% and tourism expenditures related to ski resorts amount to about 6.5 billion EUR (Atout France 2012). In Austria, where the ski industry is a key sector, winter sports generate almost 7.4 billion EUR in direct value added every year (Arbesser et al 2010). Snow scarcity affects ski resort operators and all surrounding stakeholders (e.g. host providers, restaurants, merchants, ski instructors, rental and sale shops of sports equipment, transport operators) connected to the ski industry
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
