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At one point, Markus Oppliger (63) and his staff had to ask themselves: What next? It was 2018 after three bad winters. Three times no profit, three times profit deficit.
The railway urgently needed support because even in good years things were not looking good. “In an average winter we lost between 500,000 and 800,000 francs a year,” says former auditor Oppliger, who is now chairman of the Pizolbahnen board of directors.
Swiss ski resorts in crisis
The community helped for several years, but this was also limited. And the signs didn’t get any better. If there is not enough snow in Pizol by Christmas, there will be a much bigger hole in the budget next season than there has been so far. One thing was clear: there is no future without making profits.
A real solution had to be found quickly.
The Pizol region is not alone with its problems: many ski areas in Switzerland are in crisis. On the one hand, there is climate change, which is increasing snowfall limits and forcing regions to make expensive investments in snowmaking systems. On the other hand, there are prices that have known only one direction in recent years: Up. According to a market analysis conducted in 2017, one day of skiing costs Swiss citizens an average of 170 francs. A week’s ski holiday for a family of four: 4,760 francs.
There are fewer and fewer people on skis
More and more people are canceling the Swiss national sport. While mountain railways regularly had over 30 million ski days in the 90s, last year the figure was only 22.3 million days. The situation is not getting any better: the baby boomer generation is moving out, boys no longer automatically grow up with profit. Germany, the most important foreign market this season, is also at risk of collapse due to inflation.
It is now small and medium-sized areas that increasingly face existential problems. Regions such as Ratzi in the canton of Uri, Sattel-Hochstuckli in Schwyz or Pizol SG. Pizol, which has twelve facilities, is medium sized and has medium snow depth. This means high fixed costs and little guaranteed profit.
“You need to change, manage to be profitable in the summer or apply for public financing,” says Jürg Stettler, a tourism expert at the Lucerne University of Applied Sciences. “How much longer?” This occurs at the latest when facilities or concessions need to be renewed. Because it’s really expensive.
very convincing
So Oppliger and his team began calculating and working on scenarios. Scenario 1 (great success with direct cable car to Pizolhütte including hotel) had no chance of winning 150 million francs. “We would need a Sawiris.” Scenario 2 – reduction, closure of the feeder railway, either only in summer or only in winter – a financial dead end. Scenario 3 – continue as before – slow but inevitable death. Only one calculation worked: scenario 4 – status quo plus. “Everything remains as it is, but we are investing in the snowmaking system.”
In 2020, the plan was presented to the communities and it was immediately announced how much it would cost: 12.5 million francs. This will cover profit-making costs and secure operations in the medium term. “The first reaction was: ‘Hello?!’”
Oppliger and Co. Now was the time to persuade. They held dozens of “peak” conversations and visited clubs, local councils, ski clubs and community meetings. “We were like traveling preachers.” Including sleepless nights. But Oppliger, accustomed to accounting, risk-taking and sales, got away with his plan.
After four citizens’ meetings and two votes, the final municipality, Fläsch GR, said yes to the massive project this June. “We started scanning two days later.” A storage lake is being created near Pizolhütte that will hold the equivalent of 500,000 bathtubs of water. “By the end of 2024, we will be able to feed a lot of water into the system for the first time.”
Should ski areas be subsidized?
Some communities will soon have to have the discussion Pizol has already discussed: How much are our ski areas worth to us? Expert Stettler says subsidies have increased steadily in recent years. “Most new construction projects today involve public money.” This is the case even in large areas: in Andermatt, for example, the 130 million franc expansion of the ski area was largely co-financed by public contributions. In Laax GR the canton is supporting a new gondola lift for several million.
Stettler is skeptical of this development. He says tourism is of economic importance and some railways fulfill a transport function that justifies public co-financing. “But the question is to what extent.” Because skiing is a pleasure in itself.
Pizol must stand on its own in the future
Oppliger puts it this way: “We don’t just represent employment, we also represent significant value in terms of quality of life. If an indoor swimming pool or a football field is publicly financed, why not us?” In 2007, it was the communities, the public, and the government that really wanted to build both feeders. “This means that we are a kind of infrastructure.”
The long-term goal is to be able to stand on your own feet again. To achieve this, they are increasingly focusing on summer business, whose sales have tripled in recent years. With new walking, cycling and adventure trails, a crime thriller run and maybe even a 1000 meter long suspension bridge over Valeistobel at one point. A vision, Oppliger says. “But making snow was a dream in the beginning.”
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.
