New Tūroa gondola put on hold by Ruapehu Alpine Lifts

A snowboarder at Mt Ruapehu's Tūroa skifield, October 2020. Photo / Mt Ruapehu

Snow lovers will have to wait for a gondola at the Tūroa ski area.

In 2019, Ruapehu Alpine Lifts came up with an exciting new 10-year development plant for the Tūroa ski area on Mt Ruapehu. In February shareholders were advised the plan has been put on hold.

In a stakeholder update, chairman Geoff Taylor says the board met in February to review company strategy for 2022 and beyond.

The key issues that were highlighted included the importance of growing the summer sightseeing market on the Sky Waka gondola on the Whakapapa side and the benefits of reducing crowds in the peak winter periods to improve the guest experience.

One of the other major decisions from the strategy review was to place on hold the current Tūroa development plan for 2019 to 2029.

The plan would see approximately $40 million worth of investment, including building a gondola, replacing the Jumbo TBar and the Giant Express chairlift, renewing beginner facilities at the Wintergarden, a new 400 seat cafe at Blyth Flat, extending the Alpine and Wintergarden cafes, expanding snowmaking, and modifying ski area terrain.

The highlight of the development was a new 10 seater gondola replacing the two chairlifts at the bottom of the ski area (Movenpick and Parklane) with a gondola that has an option of getting off halfway up. It was intended to operate the Tūroa gondola in the winter only.

Taylor outlined the principal reasons for the "significant change" to put the Tūroa development plan on hold:

A material fall in RAL's profitability due to the Covid-19 Pandemic which has increased debt, including funding from the Ministry of Business Innovation and Employment to make safe and extend the life of the key Tūroa lifts.

A further write-down in the value of the Tūroa lifts due to a weaker earnings outlook.

An unsuccessful promotion of the sale of a portion of RAL to raise capital.

Recent material increases in the cost of replacement imported lifts and parts

Taylor says the company's accounts for the year ended 30 November 2021 are still being audited, and in line with the 26 November 2021 company update, the loss will be approximately $7.4 million.

He says the RAL board remains committed to finding the best solution to a long-term sustainable future for Tūroa, but says the immediate concern is the safety and the useful life of the Tūroa lifts. An external report has been commissioned to review the remaining life of the Parklane and Movenpick chairlifts.

"This report will enable an informed judgement on current safety, the costs to maintain appropriately (sic) and the potential to extend the life of the lifts versus replacement."

RAL is currently looking for new board members who have expertise in engineering, infrastructure and legal areas.