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The ski season has started in Andermatt RI. And it is becoming increasingly visible how new US investor Vail Resorts is pushing forward the modernization of the mountain village. Thanks to billionaire Egyptian Samih Sawiris (66), the region with a ski resort has turned into a tourism spot in the last decade. Walking in the new Reuss area with ski area bosses Raphael Krucker, 44, and Mike Goar, 65, Blick learns about the Andermatt expansion plans of Vail Resorts, the world’s largest ski area operator and owner.
Blick: You were the general manager of huge ski resorts in the United States and now live in Andermatt. Where do the better skiers live; In America or Switzerland?
Mike Goar: In the USA we always have very strong skiers like Mikaela Shiffrin. However, when you compare amateur athletes on the ski slopes in the USA and Switzerland, you have to clearly say that Switzerland comes to the fore in terms of the number of good skiers.
Was this move a culture shock for you?
-Goar: No, but there is a big difference in the planning processes on the mountain. We want to develop the ski area further and the necessary approval procedures are much more complex in Switzerland. And then there are speed controls on Swiss motorways. When I first came here I was surprised by a speed camera. But I learned quickly. (Laughs)
A big concern since you started is that Vail Resorts in Andermatt could suddenly charge prices like in the US. The price of a day ticket there is 150 or even 300 dollars, depending on the destination.
-Goar: Pricing structures in North America are completely different. Our guests can continue to expect the Andermatt prices they are familiar with from Switzerland and Europe. Also, only a few guests at Vail Mountain pay the $300. Most people buy the Epic Pass, which gives unlimited access to our 41 ski areas. Maybe in the long run there will be an adjustment in price structures in Europe so that day tickets will become more expensive and more people will buy season tickets.
At Andermatt they have already increased their subscription prices by twelve percent for this winter season!
-Goar: This has nothing to do with our listing, prices are adjusted based on cost structures. There are still generous discounts for locals and second home owners.
Are you completely overhauling the ski area now?
goar: NO. My goal was to come here first, listen, get to know the new culture and learn German. So far the language has not progressed as desired. People here speak very good English. We continue to rely on people from the region for staff. I’m the only American here. And of course we bring our knowledge to the ski area.
Raphael Krucker (44), chairman of Andermatt Swiss Alps AG, has been responsible for the development of real estate and investments worth several hundred million for almost four years. Krucker, St. After studying mechanical engineering in St. Gallen, he trained as an executive manager at the IMD Business School in Lausanne. Since 1995, he worked at the Bühler Group in various positions and countries around the world. Krucker is married and has two children.
Raphael Krucker (44), chairman of Andermatt Swiss Alps AG, has been responsible for the development of real estate and investments worth several hundred million for almost four years. Krucker, St. After studying mechanical engineering in St. Gallen, he trained as an executive manager at the IMD Business School in Lausanne. Since 1995, he worked at the Bühler Group in various positions and countries around the world. Krucker is married and has two children.
Large price increases are already a reality when it comes to real estate. Looking at real estate portals, you see large apartments for families, costing between 1.3 and 3 million francs. Do you see a problem with this development?
Raphael Krucker: We must not forget that Andermatt was left desperate after the withdrawal of the army and the collapse of property prices. Currently, this place is experiencing strong development with the creation of more than a thousand new jobs. When it comes to prices, we need to distinguish between the first home market and the second home market. We will find a solution together with our partners regarding rental flats. Many employees also live in neighboring communities.
What is Andermatt Swiss Alps AG doing about this problem?
– Krucker: We are currently implementing a project in which 39 first houses are built. Smaller apartments for rent are offered here. Together with our partners we will also create affordable housing for families in Andermatt. Various projects are on the way.
The project in Andermatt is far from completed. How much investment will be made in the next few years?
– Krucker: In addition to the previous 1.4 billion francs, another 600 million francs will be added over the next five years. Approximately $110 million will be invested directly in the mountain, while the remaining funds will be transferred to hotels, apartments, sports and infrastructure, and the shopping street currently under construction. We invest because demand is high and cooperation with partners works.
Mike Goar (65) has been managing the Andermatt-Sedrun ski area on behalf of Vail Resorts since summer 2022. He was previously responsible for Park City Mountain in Utah, the largest contiguous ski area in the United States. Goar has been in the ski industry for over 40 years and during that time has managed many of the most well-known ski resorts in the United States. He moved to Andermatt with his wife Heidi for the new job.
Mike Goar (65) has been managing the Andermatt-Sedrun ski area on behalf of Vail Resorts since summer 2022. He was previously responsible for Park City Mountain in Utah, the largest contiguous ski area in the United States. Goar has been in the ski industry for over 40 years and during that time has managed many of the most well-known ski resorts in the United States. He moved to Andermatt with his wife Heidi for the new job.
Andermatt investor Samih Sawiris once said his destination would one day be between Zermatt and St. He said he should be on the same level as Moritz. How far are you from that?
-Goar: Your question shows that we are not at their level right now. No, I could never really say we were at the top. But we want to constantly improve and provide a better experience for our guests. The infrastructure in the mountainous region is already very modern and is being further optimized. We are already among the best destinations in external ratings.
Are lighthouse projects planned, such as the new V-Bahn to the Jungfraujoch or the Alpine Crossing in Zermatt?
-Goar: We do not have such a project plan. However, we continue to move forward with various cable car projects that will improve connections within the existing ski area. We are also expanding the snowmaking infrastructure and will expand the range of restaurants.
The reality is that you took over a loss-making mountain railway that had caused millions in losses over the years. How quickly do you want to reach profitability?
-Goar: We want to be in the black this year. Provided that we have a good winter in terms of weather and snow conditions. The signs are looking good right now.
How much can American guests contribute to this? Last year, 10 percent of the guests came from abroad.
-Goar: Guests from abroad will certainly contribute, and we estimate they will make up around 15 percent of guests at the destination next winter. But the number of guests on the mountain is one thing. It is also important to stay a few nights in Andermatt.
Buyers of many holiday apartments in Andermatt do not have to rent, as the second housing law actually requires it for new buildings. This is unlikely to contribute to longer stays and full beds…
– Krucker: The project was approved before the vote on the second dormitory law in 2007. Therefore, there is no obligation to rent. However, we do not have a cold bed problem. About half of the owners rent their apartments into our care, and this number is increasing every year. Andermatt Alpine Apartments currently rents approximately 250 holiday apartments with more than 600 beds.
Are the rumors true that Vail Resorts also wants to take over the ski lifts in Crans-Montana?
-Goar: I can’t say anything about this.
What are Vail Resorts’ overall growth plans in Europe?
-Goar: There’s no specific number for how many ski resorts Vail Resorts wants to take on. History has shown how challenging such takeovers are. We’re always on the lookout for exciting opportunities, but finding a willing seller can take years. Andermatt is definitely our most important project in the world right now. I would also like to point out that we did not sell any of our ski areas.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
