Ski industry up in downturned economy
Chris Daly, of Kingfield, soars off a skidder tire in the annual "Junk Jam" competition at Sugarloaf on Saturday afternoon. (Heidi Murphy photo) WESTERN MOUNTAINS -- Despite a time of economic turmoil, lackluster consumer spending and hardship and stress on individuals and corporations across the board, the ski industry in the western mountains continues to not only survive, but thrive.
The news across the state reveals increased unemployment, mill shut-downs, corporations closing the door, foreclosure and other depressing news of Americans falling into a recession.
However, reports from Sugarloaf and Saddleback reveal that the resorts are not only having a pretty good year, in some categories they're having an exceptional season.
"Despite an economy that has been lackluster overall this year, Sugarloaf is having a solid year," said communications manager Ethan Austin. "The economy probably has changed the habits of some skiers, which has required us to get a bit more creative with our marketing and price points, but overall it has been a good year for Sugarloaf, particularly when compared with last year's record numbers."
Austin said that guest visits to date are pacing very close to last year's record numbers. February was strong and March has been very good so far.
"We have had some soft days this season due to a number of weather challenges on weekends and holidays during the first half of the season. However our midweek numbers are actually up over last year —last week for instance our midweek skier visits were up 20 percent over our expected numbers."
Sugarloaf is also reporting that their season pass revenue is up over last year which sets a new record high.
Saddleback is having a banner year as well. General Manager Warren Cook reports that the resort is up over 20 percent in paid guest visits this year and over 23 percent in season pass revenue. A surprise too many is a report that the mountain has sold over $4 million in real estate this season and consumers are pre-buying units before they're even completed.
"Yes, this has been a big surprise, I guess it's tied to the buzz here," Cook explained. "Younger families like it here and prefer to put their money in a hard asset. We are on a good trend upward and Rangeley and the lakes make this a true four-season resort."
Sugarloaf is reporting that ski and stay packages have paced a bit more slowly this year, though not tremendously.
"The biggest thing we have noticed in terms of our ski and stay packages is that people are booking them much later," Austin said. "They might wait until the last week before they come to book a package. They're shopping around, searching for the best value, and being smart with their spending."
General Manager John Diller explained, "While the numbers aren't final yet, it appears as though Sugarloaf's revenues from this season will be similar to or even ahead of last season, which was a record year for us."
"For a lot of people, skiing is much more than a hobby or weekend activity, it's a lifestyle," Diller explained. "People identify themselves as skiers, and they're going to do what they can to make sure that it remains part of their life. Sugarloaf in particular is blessed with a very devoted following who identify themselves not only as skiers, but as Sugarloafers."
Diller said he thinks the current high cost of travel may be working to their benefit as well, with a number of people choosing to vacation locally rather than travel out west.
"Well first of all, I think some ski business is down and some is up, it is not across the board," Saddleback's Manager explained. "Our pricing has helped us, we are the best value in Maine for sure, there is a lot of good buzz about Saddleback so we are seeing a lot of new skiers and riders," Cook explained. "It is an alternative to the other big resorts that has not been there in the past. We put a big emphasis on service and people come back for more. It is all about the lakes and the views which are unusual; it is a big mountain with a lot of variety of terrain," Cook added
"In addition, Sugarloaf has benefited from recent capital improvements, spearheaded by Boyne Resorts," Diller explained. "They have pumped more than $9 million into the resort over the past two years, the bulk of which has gone towards snowmaking improvements. This allowed us to start the season with some of the best early conditions in our history, and helped to generate excitement for the winter season."
Diller said based on his observation from village restaurants and retail outlets, it's been quite busy this season, but could not speak to their numbers. "We have also seen a sharp increase in sales at the Sugarloaf Ski Shop and Sugarloaf Boardroom over the past few weeks as we have experimented with various sales and promotions."
Abundant snowfall here in the western mountains will produce some great spring skiing and riding and may yield a surprise in new paid guest visits for the areas ski resorts.











