If it snows, they will come, ski resorts find

By Claudia Parsons

MOUNT SNOW, Vt (Reuters) - Lost jobs, bankruptcies and home foreclosures have forced Americans to cut their spending, but one luxury sector is more interested in weather forecasts than economic forecasts -- the ski business.

"People who love to ski will find a way to ski," said Dennis Butchko, a retired teacher who volunteers as a resort "ambassador" at Mount Snow in Vermont, offering advice and safety tips to skiers in return for a season pass.

While major resorts in Colorado such as Vail and Aspen have seen a drop in visitors, Mount Snow and other resorts in the U.S. East say they are benefiting from a rise in skiers who might normally fly west but chose to drive to nearby resorts instead.

Resort manager Kelly Pawlak said Mount Snow has seen a more than 10 percent jump in season pass sales this year, and while Christmas was a little slow, January 2, which fell on a Friday and enjoyed great snow, was the busiest day since 2004.

"Good snow really does trump a down economy," said Parker Riehle, president of the Vermont Ski Areas Association, whose 20 resorts have mostly seen business grow this year.

Riehle was among dozens of central and eastern resort managers and officials attending a trade fair and conference of the National Ski Areas Association at Mount Snow this month, where a mood of cautious optimism reigned, despite a recession.

NSAA president Michael Berry said three seasons ago, "the economy was just humming, people had money, but it was a difficult weather year and we were off 10 to 12 percent."

Berry said there had been a redistribution of the market, with drive-to weekend resorts faring better than spots in the West such as Vail and Aspen, both in Colorado, which rely more on visitors who fly long-distance and stay for a week or more.

Vail Resorts Inc., which operates five ski resorts including Vail, Breckenridge and Beaver Creek in Colorado, said on January 9 that skier visits so far this season were down 5.8 percent, with lift ticket revenue down 7.5 percent.

"The current economic environment has certainly impacted the beginning of the 2008/2009 ski season," said Vail CEO Rob Katz, adding that visitors were also cutting back on pricey extras such as ski school and high-end dining and retail. Ski school revenues fell around 20 percent on the previous year.

"Given the economy, given the very unprecedented challenges that are out there, we were pleased with the results to date," Katz said, adding that bookings had improved since December.

Aspen Skiing Co. reported a similar fall in visitors, down 8 percent in the two weeks over Christmas and New Year.

"January is stronger than December and we are down less than 5 percent for the month at this point," Aspen spokesman Jeff Hanle said. "We will continue to put offers and promotions in the marketplace to encourage last-minute bookings and to position ourselves for when things improve."

BOOK LATE, DRIVE

Jim Church, 63, who works as a ski instructor in Park City, Utah, a major destination in the West, said he had noticed the slopes were less full.