Since the late 19th Century the earth has warmed around 1.1 degrees Celsius, carrying huge consequences for ski resorts globally. Whilst some ski resorts at higher altitudes have been virtually unaffected by the increasingly warm climate, others have suffered considerably, most notably due to the decreased amount of snow and increased amount of rain. As a result, several knock-on effects have occurred, including shorter ski seasons, increased operational costs and reduced tourism revenue. The ski industry, with a market size of 4.28 billion dollars in 2022, is becoming ever more unreliable, leading to serious economic impacts. 

The decreasing amount of snow is having a profound effect on Ski tourism, felt especially by lower/middle altitude resorts. This has been a truly global phenomenon. More than half of Europe’s resorts are at ‘high risk’ of snow scarcity by 2100. The Rockies are warming twice as fast as the global average, and the Andes have lost over 50 per cent of snow coverage since the 1960s. This rising threat has forced ski resorts to rely increasingly on artificial snow to keep the ski slopes open, or suffer the consequences of a reduced number of days of skiing or snowboarding. ESPN estimates that resorts can spend anywhere between $1000 -$2000 to cover one acre with 12 inches of artificial snow, creating a huge expense to cover a whole resort. Increased operational costs result in lower profit margins. At the same time, however, some higher altitude resorts are attracting more customers, as they experience less rain and more snowfall.

As a result of rising precipitation and reduced snowfall, shorter ski seasons are taking place. With snow arriving later and Spring coming earlier, it’s reported that snow depth has reduced 10% since the 1970s. This has led to ski seasons lasting approximately one month less than before, reducing the yearly volume of tourists resorts can handle. In addition, if customers feel that snowfall at a particular resort is unreliable, tourists may be deterred from visiting at all. A reduced number of skiing days decreases the revenue earned from selling lift tickets and ski passes, which make up 45 to 48 per cent of a ski resort’s revenue. A month’s loss in revenue can be devastating, even leading to resorts closing down. A perfect illustration of this is the ‘La Sambuy’ ski resort in the French Alps, which has permanently closed after only managing to open 4 weeks in the 2022/2023 season. By the time it closed the resort was losing about $500,000 annually.

Climate Change is having a significant effect on glaciers as well, causing them to melt and retreat. For example, the ‘Grand Mott’ glacier in Tignes has lost 50% of its surface area since the 1980’s. This can cause terrain to become unstable, posing a threat to infrastructure like lifts and buildings, forcing some ski pistes to be shut off. Glaciers also make valuable tourist attractions, but as they retreat they become smaller and more dangerous, meaning less tourists are willing or able to visit them. With 92% of Glaciers in the Alps expected to disappear by the end of the century, many resorts will suffer from reduced glacier tourism.

Local businesses are also suffering from the decline of the Ski industry. Ski resorts are major employers in their local communities, providing jobs from ski instructors to waiters both seasonally and all year round. If ski resorts struggle, local communities suffer from lay-offs and wage cuts. Meanwhile, the once thriving real estate market in areas such as Park City, Utah, and lower-altitude European resorts is now facing uncertainty due to doubts about the long-term viability of skiing. While the ski property index has experienced strong 5.8 per cent year-on-year growth thanks to a decade of low-interest rates encouraging borrowing, rising mortgage costs and energy prices may reduce property values in the upcoming years. This combination of factors could lead to a depreciation in the value of the real estate market. Lastly, ski resorts are facing scrutiny for their environmental impact. Criticisms have ranged from the excessive water use required for artificial snow, to the use of snow cannons which are incredibly energy-intensive and run on polluting fossil fuels. However, investing in more sustainable practices can increase operational costs, decreasing a Ski resort’s profit. 

Ski resorts are experiencing rapid change, with some higher-altitude resorts excelling while others are seriously struggling. Going forward many might look to diversify into becoming all year round resorts, with activities such as hiking or mountain biking in the warmer months. An example includes the ‘Whistler’ resort in Canada which is already making more in the Summer than Winter. With global warming set to remove 50 to 90 per cent of snow cover by 2100, ski resorts will have to adapt or die.