The Demand for Winter Sports: Empirical Evidence for the Largest French Ski-Lift Operator

Abstract

This paper investigates the determinants of long-run winter tourism demand for French ski resorts. The data are based on skier visits to the largest ski-lift operator in the world (Compagnie des Alpes) for the winter seasons 1993/1994 to 2011/2012. Using dynamic panel data models for six ski resorts, the study finds relatively low income and price elasticities in absolute terms, with long-run elasticities of 0.64 and −0.40, respectively. Furthermore, the study finds that snow depth measured at the weather station Col de Porte — located at the medium elevation of 1,325 metres above sea level — is a significant predictor of skier days in the high-elevation ski areas. However, the magnitude of the effect of poor snow years is very small: on average, low-snow winter seasons (such as 1989/1990 or 2006/2007) will lead to a reduction in skier visits of about 2.5%. The results are not sensitive with respect to the measurement and timing of snow depth.