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read moreRuapehu Alpine Lifts Limited (RAL), which runs the Whakapapa and Tūroa ski fields on Mt Ruapehu on New Zealand’s North Island, has gone into voluntary administration.
The move, which occurred on Tuesday, follows tough operating years for RAL during the pandemic when New Zealand’s ski areas were first closed and then unable to receive international visitors, then poor snowfalls and above-average temperatures during the current winter season.
RAL, which claims that the two areas combined are the country’s largest ski resort, chose to enter administration after a request for a bailout from the New Zealand Government was rejected.
Advising of RAL’s status this week, a statement from newly appointed administrators John Fisk and Richard Nacey of PwC explained “the company has had a very difficult last three years, with the impact of COVID-19 restrictions, paired with poor weather this season, meaning that the business has been placed under significant cash flow pressure.”
RAL currently employs 196 people across the two ski fields having had to lay off more than 200 staff in August due to lack of snow.
In a normal season, almost 2,000 people either work for the company or directly rely on its activities.
Despite claims the business could have a value of $100 million, Fisk told Newshub that if the business was to close its assets may be worth next to nothing.
Whakapapa is usually one of the first ski areas to open in the southern hemisphere in late May or early June each year thanks to an all-weather snowmaking system while, along with Tūroa, it is among the last to close in late October or early November as it usually has great snow cover to late spring.
Local politicians are calling on the New Zealand Government to support the business, but Tourism and Economic and Regional Development Minister Stuart Nash has pointed to $15 million already loaned to RAL as well as grants for the construction of a new gondola in 2019.
Minister Nash advised “we've put $15 million (and now) looked at this from a commercial lens and said 'okay, it's time for us now to step back and let the receivers do what receivers do’."
Minister Nash pointed to reports a group of shareholders and life pass-holders had proposed a crowdfunding scheme, adding “when you've got 14,000 life members, there's 14,000 people that aren't paying annual subs, life memberships can be a real drain."
Set up 70 years ago by ski enthusiasts, RAL operates as a non-profit, exempt from paying company tax while being required to put any profits back into enhancing the ski areas.
However, even before this year’s barren snow season, the company’s auditors noted there was significant doubt about whether the company could continue to stay afloat.
Should the Whakapapa and Tūroa ski fields be forced to close permanently, it would leave North Island, where more than three-quarters of the nation’s 5 million people live, without any major ski areas.
Located in the heart of New Zealand’s Tongariro National Park, Mt Ruapehu is the country’s largest volcano.
Image: Skiing on Mt Ruapehu during a past winter season.
31st May 2022 - Encouraging snow falls welcome as Australian ski resorts prepare for opening
11th May 2022 - New Zealand borders to open to all international visa holders from 1st August
10th May 2022 - New Zealand’s ski fields preparing to open for the 2022 winter season
1st April 2022 - NZSki deploys quirky marketing campaign to showcase its three mountains
24th August 2021 - Lockdowns see closure of all ski resorts in Australia and New Zealand
6th July 2021 - Fine weather marks start of Winter Season at Mt Ruapehu
14th June 2021 - New Zealand Government needs to change visa requirements to ‘save’ nation’s ski industry
24th May 2021 - New Zealand snow fields get border exemptions for international ski staff
20th May 2021 - North Island’s Happy Valley ski area on track for Queen’s Birthday Weekend opening
23rd April 2021 - Former Nazi’s name removed from Mt Hutt ski attractions
7th April 2021 - NZSki welcomes Australians back to New Zealand slopes this winter
16th June 2020 - Mt Hutt becomes first ski resort in the Southern Hemisphere to open in 2020
15th May 2020 - New Zealand ski fields look to post-Coronavirus snow season operations
1st May 2020 - New Zealand ski areas look to snow season operations with restrictions
19th September 2019 - NZSki celebrates the return of kea to The Remarkables
19th August 2019 - Research assesses merits of season passes for New Zealand’s ski fields
22nd July 2019 - New Zealand’s Mt Ruapehu ski season benefits from $25 million gondola lifts
6th March 2018 - New Zealand ski areas report record visitation during 2017 winter season
7th September 2017 - Mt Hutt Ski Field to remain open until mid-October
10th June 2014 - New Zealand ski season begins as fresh snow falls
18th February 2014 - Climate change to impact ski resorts
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