IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v43y2014icp8-21.html
   My bibliography  Save this article

Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria

Author

Listed:
  • Damm, Andrea
  • Köberl, Judith
  • Prettenthaler, Franz

Abstract

The prospects of increasing temperatures, a growing frequency of snow scarce winter seasons and rising energy prices raise questions about the future profitability of snowmaking. Therefore, we carry out a cost–revenue analysis of snowmaking based on projected daily snowmaking hours and visitor numbers until 2050 for a case study site in Austria. The results show that ski area operators are at risk of facing a substantial increase in total energy costs due to expected rising electricity costs, although the total amount of snowmaking hours is projected to slightly decrease because of shrinking feasible time for snowmaking (considering current snowmaking infrastructure). In the long run ski visitor numbers are projected to decline due to decreasing overall snow depths. Overall, the profitability analysis of skiing operations reveals that price increases in ski lift tickets, slightly higher than observed in the recent past, will be inevitable in order to keep skiing operations profitable in future.

Suggested Citation

  • Damm, Andrea & Köberl, Judith & Prettenthaler, Franz, 2014. "Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria," Tourism Management, Elsevier, vol. 43(C), pages 8-21.
    • Handle: RePEc:eee:touman:v:43:y:2014:i:c:p:8-21
    DOI: 10.1016/j.tourman.2014.01.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261517714000107
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.tourman.2014.01.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dawson, J. & Scott, D., 2013. "Managing for climate change in the alpine ski sector," Tourism Management, Elsevier, vol. 35(C), pages 244-254.
    2. Falk, Martin, 2013. "A survival analysis of ski lift companies," Tourism Management, Elsevier, vol. 36(C), pages 377-390.
    3. Jamie Sanderson & Sardar M. N. Islam, 2007. "Climate Change and Economic Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59012-0, October.
    4. Jarque, Carlos M. & Bera, Anil K., 1980. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals," Economics Letters, Elsevier, vol. 6(3), pages 255-259.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Falk, Martin & Vanat, Laurent, 2016. "Gains from investments in snowmaking facilities," Ecological Economics, Elsevier, vol. 130(C), pages 339-349.
    2. Lannoo, Karel & Thomadakis, Apostolos, 2020. "Derivatives in Sustainable Finance," ECMI Papers 29791, Centre for European Policy Studies.
    3. Falk, Martin & Lin, Xiang, 2018. "Sensitivity of winter tourism to temperature increases over the last decades," Economic Modelling, Elsevier, vol. 71(C), pages 174-183.
    4. Martin Falk & Eva Hagsten, 2019. "Climate zone crucial for efficiency of ski lift operators," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(6), pages 664-681, April.
    5. Falk, Martin & Hagsten, Eva, 2016. "Importance of early snowfall for Swedish ski resorts: Evidence based on monthly data," Tourism Management, Elsevier, vol. 53(C), pages 61-73.
    6. Rutty, Michelle & Scott, Daniel & Johnson, Peter & Pons, Marc & Steiger, Robert & Vilella, Marc, 2017. "Using ski industry response to climatic variability to assess climate change risk: An analogue study in Eastern Canada," Tourism Management, Elsevier, vol. 58(C), pages 196-204.
    7. Ciprian Ioan Rujescu, 2022. "Optimal Period for Winter Mountain Tourism in Romania," Sustainability, MDPI, vol. 14(7), pages 1-12, March.
    8. Robert Steiger & Eva Posch & Gottfried Tappeiner & Janette Walde, 2020. "Effects of climate change on tourism demand considering individual seasonal preferences," Working Papers 2020-08, Faculty of Economics and Statistics, University of Innsbruck.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Falk, Martin & Vanat, Laurent, 2016. "Gains from investments in snowmaking facilities," Ecological Economics, Elsevier, vol. 130(C), pages 339-349.
    2. Martin Falk, 2015. "Returns to investments in new ski lifts: the importance of weather conditions and elevation," ERSA conference papers ersa15p1379, European Regional Science Association.
    3. Aurélie Corne & Olga Goncalves & Nicolas Peypoch, 2020. "Evaluating the performance drivers of French ski resorts: A hierarchical approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 389-405, April.
    4. Martin Falk & Eva Hagsten, 2019. "Climate zone crucial for efficiency of ski lift operators," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(6), pages 664-681, April.
    5. Rutty, Michelle & Scott, Daniel & Johnson, Peter & Pons, Marc & Steiger, Robert & Vilella, Marc, 2017. "Using ski industry response to climatic variability to assess climate change risk: An analogue study in Eastern Canada," Tourism Management, Elsevier, vol. 58(C), pages 196-204.
    6. Mayer, Marius & Steiger, Robert, 2013. "Skitourismus in den Bayerischen Alpen: Entwicklung und Zukunftsperspektiven," Arbeitsberichte der ARL: Aufsätze, in: Job, Hubert & Mayer, Marius (ed.), Tourismus und Regionalentwicklung in Bayern, volume 9, pages 164-212, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    7. Bierens, H.J. & Broersma, L., 1991. "The relation between unemployment and interest rate : some international evidence," Serie Research Memoranda 0112, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    8. Juncal Cunado & David Gabauer & Rangan Gupta, 2024. "Realized volatility spillovers between energy and metal markets: a time-varying connectedness approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-17, December.
    9. Elie Bouri & Georges Azzi, 2014. "On the Dynamic Transmission of Mean and Volatility across the Arab Stock Markets," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(3), pages 279-304, December.
    10. Eric Fur, 2023. "Risk and return of classic car market prices: passion or financial investment?," Journal of Asset Management, Palgrave Macmillan, vol. 24(1), pages 59-68, February.
    11. Georgiev, Iliyan, 2010. "Model-based asymptotic inference on the effect of infrequent large shocks on cointegrated variables," Journal of Econometrics, Elsevier, vol. 158(1), pages 37-50, September.
    12. Ericsson, Neil R., 2016. "Eliciting GDP forecasts from the FOMC’s minutes around the financial crisis," International Journal of Forecasting, Elsevier, vol. 32(2), pages 571-583.
    13. Jin, Xiaoye, 2015. "Volatility transmission and volatility impulse response functions among the Greater China stock markets," Journal of Asian Economics, Elsevier, vol. 39(C), pages 43-58.
    14. Hongchao Zhang & Jordan W. Smith, 2018. "Weather and Air Quality Drive the Winter Use of Utah’s Big and Little Cottonwood Canyons," Sustainability, MDPI, vol. 10(10), pages 1-12, October.
    15. G. D. Gettinby & C. D. Sinclair & D. M. Power & R. A. Brown, 2004. "An Analysis of the Distribution of Extreme Share Returns in the UK from 1975 to 2000," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(5‐6), pages 607-646, June.
    16. Damian Jelito & Marcin Pitera, 2018. "New fat-tail normality test based on conditional second moments with applications to finance," Papers 1811.05464, arXiv.org, revised Apr 2020.
    17. Ilham Haouas & Naceur Kheraief & Arusha Cooray & Syed Jawad Hussain Shahzad, 2019. "Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries," Working Papers 1294, Economic Research Forum, revised 2019.
    18. Lenten, Liam J.A. & Geerling, Wayne & Kónya, László, 2012. "A hedonic model of player wage determination from the Indian Premier League auction: Further evidence," Sport Management Review, Elsevier, vol. 15(1), pages 60-71.
    19. Morgan Bazilian & Patrick Nussbaumer & Hans-Holger Rogner & Abeeku Brew-Hammond & Vivien Foster & Shonali Pachauri & Eric Williams & Mark Howells & Philippe Niyongabo & Lawrence Musaba & Brian Ó Galla, 2011. "Energy Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa," Working Papers 2011.68, Fondazione Eni Enrico Mattei.
    20. Stephen Keef & Melvin Roush, 2005. "Day-of-the-week effects in the pre-holiday returns of the Standard & Poor's 500 stock index," Applied Financial Economics, Taylor & Francis Journals, vol. 15(2), pages 107-119.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:43:y:2014:i:c:p:8-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.