Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/337848 
Year of Publication: 
2025
Citation: 
[Journal:] Annals of Tourism Research Empirical Insights [ISSN:] 2666-9579 [Volume:] 6 [Issue:] 2 [Article No.:] 100191 [Year:] 2025 [Pages:] 1-12
Publisher: 
Elsevier, Amsterdam
Abstract: 
In recent years, ski area operators in Switzerland have faced decreasing demand while ski lift and snowmaking capabilities have increased - partly using financial aid from public funds. It is therefore crucial to determine to what extent ski area investment supports demand and affects the competition for the remaining guests. Exploiting firm-level and natural snowpack data, we find that ski areas with above-median snowmaking capabilities decrease their natural snow dependency and that ski lift investments induce a positive, albeit small, effect on outcomes in the winter following their construction. Additionally, we document adverse effects on demand for nearby neighboring ski area expansions. The results imply that investments in high-capacity lifts are relatively ineffective at retaining demand and sustaining revenue.
Subjects: 
Investment competition
Ski area expansion
Ski area operators
Ski lift replacement
Snowmaking
Spatial competition
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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