DoC granted the concession to Whakapapa Holdings Ltd. Photo / Mt Ruapehu
DoC granted the concession to Whakapapa Holdings Ltd. Photo / Mt Ruapehu
Whakapapa Holdings Limited will be the new operator of the Whakapapa ski field after the Department of Conservation today granted a 10-year concession.
It is the latest development for the plagued ski field that faced concerns it wasn’t commercially viable and the downfall of ski company Ruapehu Alpine Lifts (RAL).
Department of Conservation director-general Penny Nelson today confirmed through a statement the decade-long concession would allow Whakapapa Holdings Ltd (WHL) to run the ski field and use the Whakapapa village’s six buildings for accommodation.
“DoC will be closely monitoring the ski field activity to ensure everything is running smoothly.
“Giving the rights to use such valuable public conservation land is something I considered carefully, taking into account the feedback through the concession process, including from iwi engagement, public notification and hearings.”
DoC refused to grant interviews about the concession approval.
RAL first went into insolvency in October 2022 and received several instalments of Crown funding to keep the ski field operating.
WHL had effectively morphed from RAL, this time with the backing of The South Island Office - an investment group led by ski industry veteran Tom Elworthy that also specialised in property development and restoration.
Skiers and snowboarders converge on Whakapapa. Photo / Janine Marfels
WHL chief executive Travis Donoghue told the Herald he and his staff were “ecstatic” after the concession bid approval, noting the years of “uncertainty and volatility”.
“For them to be able to go home tonight and actually answer the neighbour, the local business, ‘What’s happening with Whakapapa’, ... [it’s a] really, really happy day for us to understand that we‘ve got that concession in our hands now.”
Donoghue expected WHL would be able to settle a deal with Crown-appointed receivers Calibre Partners in the coming days.
The 10-year concession timeframe was less than the 30-40 years typically afforded to skifield operators, according to Donoghue.
However, he said the company would use the early years to build relationships with stakeholders, particularly local iwi partners.
Newsroom yesterday reported Ariki Sir Tumu Te Heuheu, the paramount chief of Ngāti Tūwharetoa, had written to Prime Minister Christopher Luxon wanting to discuss the Government’s retreat from the mountain.
Te Heuheu claimed the Government had sought to create division within his iwi and between the various local iwi and as such, Ngāti Tūwharetoa wouldn’t support further concessions or development, according to Newsroom.
Donoghue claimed WHL had a “good overall relationship” with iwi partners but accepted improvements could be made.
“We need to improve some of our communication, always have an attitude of improving, and we need to actually keep abreast of what exactly it means, various different entities at different states of settlement in terms of Treaty redress and us being across the changing dynamics within those organisations as well."
He acknowledged there had been some concerns expressed on “online forums” about the company shift from a public benefit entity to a private entity, meaning the requirement for all profit to be reinvested into development was gone.
Donoghue argued any approach to development that didn’t improve guest experience or dismissed the Tongariro National Park’s position as a world heritage site would be detrimental to the business.
“To be a responsible company today, we have to put those things first and that’s where I say people shouldn’t fear the change."
When Cabinet agreed to provide $7 million of financial support to Ruapehu Alpine Lifts in March - part of the reported $50m of public funds committed to help keep the skifield going - Regional Development Minister Shane Jones warned it was the last bailout the Government would provide.
Regional Development minister Shane Jones has said Whakapapa would not be bailed out by the Government again. Photo / Cameron Pitney.
Donoghue said he was confident WHL would not need Government support in the future.
With the concession granted, WHL was moving quickly to prepare for the upcoming winter season.
Donoghue said snow sports enthusiasts would hear more in the coming days and would begin selling season passes as early as next week, before opening the ski field from May 30.
He confirmed last year’s offer for free season passes for children 10 years and under would be in place in 2025.
While “improved snowmaking” was a key goal in the first of his 10 years, Donoghue said any long-term development would be decided alongside stakeholders. A condition of the concession meant WHL had to produce a “forward-looking” development plan after five years.
Donoghue pointed to the 28% increase in “first-time snow touchers” at Whakapapa in 2024 compared to 2023 as a driver behind the desire to turn the North Island ski field into "New Zealand’s alpine playground".
“Skiing and snowboarding is absolutely going to be at the front of our priority, we‘re not gonna turn back on that rich legacy,” he said.
“But we‘ve got an opportunity now to create more experiences that sit between that, passive and active, and possibly turn that first-time snow seeker from a sightseer into a skier, but also host and entertain them.”
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.
