Victorian government leases Mount Baw Baw and Lake Mountain ski resorts

The owner of a winter sports store in Victoria’s east says he was shocked to learn the state government wanted to privatize the operation of two major ski resorts.

The government has confirmed it is seeking expressions of interest for the long-term lease of operations at Mount Baw Baw and Lake Mountain.

Matt Youd, who has run Erica Ski Hire since 2010, said he was worried about the future viability of his business.

“There’s a lot of misinformation and confusion right now,” he said.

With an altitude of 1,450 meters, Mount Baw Baw has seven ski lifts spread over 35 hectares of ski area.

Lake Mountain is located at 1,433 meters above sea level and has the distinction of being the closest ski resort to Melbourne.

Both are considered ideal snow spots for young children and families.

They also offer a wide range of alternative nature-based activities, including mountain biking trails and hiking.

The State Government’s decision to hand over the resorts to a private company comes just two years after it took back control of operations from Alpine Resorts Victoria.

At the time, the stations were operating at a collective loss of $8 million a year.

The ABC can confirm the deficit has since been reduced to $6 million a year.

With his business dependent on the success of the winter season in the mountains, Mr Youd said he would consider putting his “hat in the ring”.

“In the past, mountains were built on the backs of lodges and individuals…business owners and people who have true love and compassion for the mountain,” he said.

For rent, not for sale

Alpine Resorts Victoria general manager Amber Gardner said there was a lot of misinformation circulating about the future of the mountains.

“A lot of people say we sell the resorts. We don’t sell the resorts,” Ms. Gardner said.

“All resorts in Victoria are on Crown land, and anyone who owns property or operates a business in the resorts has a long-term lease with the state government.”

In the past, private companies have signed on to manage Baw Baw and Lake Mountain, which Ms Gardner said has not been successful.

This time, the government is looking for a company interested in obtaining a long-term operating lease on the stations.

This would be similar to what is in place at Victoria’s largest ski resorts – Mount Buller and Falls Creek.

“We are looking at someone taking a lease on one or both resorts and also owning them,” Ms Gardner said.

“We want big ideas to really innovate the offering at these stations, but they still need to be implemented within a sustainable framework.”

Adaptability

Calls from state government to find operator for ski resorts come after two years of poor snow conditions in Victoria.

All six ski resorts closed early this winter, including Mount Buller on September 1, the earliest end to a season since 1982.

A recent report from climate change advocacy group Protect Our Winters found that with current emissions, the length of Australia’s ski seasons would decrease by 2030.

However, he also said that Alpine regions would likely begin to rebound if global emissions were significantly reduced.

Ms Gardner said it was important for interested parties to present a business case that took into account Australia’s changing weather conditions.

“It’s about investing in more snowmaking, which underpins all of our resorts, to add to the consistency and continuity of the season,” she said.

“But also, how they might be able to introduce new ways of harvesting and storing snow for longer…and consider new activities that may or may not rely on snow.

Associate Professor Glen Croy from the Department of Management at Monash Business School specializes in sustainable tourism.

Professor Croy said it was crucial for tourism operators to diversify their offerings as the impacts of climate change became more significant.

“We know that climate change has many effects on our communities,” he said.

“We are seeing hotter summers (and) drier winters, which can significantly disrupt highly seasonal tourism activities.”

He called on seasonal operators to invest in a range of activities adapted to different weather conditions.

This could include mountain biking trails, guided walks and orienteering adventures.

“These adaptations provide multiple benefits to local communities, as they can create greater stability of demand and greater stability of employment,” Professor Croy said.