XC ski center: viable business?
I started a discussion topic in XCSkiForum a couple of years ago about
the economics of cross-country ski areas. In general, cross-country
skiing doesn't seem to be a big money-maker. Most cross-country ski
areas in North America are either associated with another business
(often a downhill ski area or a lodging business) or are government-
subsidized.
The recent example of the Windblown ski touring center in New
Hampshire illustrates the financial challenges facing cross-country
skiing. As I understand the plans of the non-profit organization that
seeks to buy Windblown, they expect the cross-country skiing
operations to essentially break even. But, to acquire the touring
center, they need to raise a substantial amount of capital
(approximately $2 million). (Part of the money is for capital
improvements such as snowmaking, but the majority is just to buy up
the land.)
It's hard to see how a free-standing cross-country ski area can be
viable in a capitalist economy, if it requires a tremendous capital
investment and does not make a profit large enough to justify that
investment.
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