What happens to Ruapehu Life Pass holders: PWC and DoC on future of ski areas

Lifeline: Disastrous snow seasons have led Ruapehu Alpine Lifts to place the company in voluntary administration. Photo / Nick Perry, AP

News that Ruapehu Alpine Lifts had been put into voluntary administration was met by concern from snow sports lovers, season pass holders and local businesses.

The two North Island ski fields, Whakapapa and Tūroa, are visited by between 300,000 and 450,000 skiers a season. However shorter snow seasons and three years of pandemic and climate addled skiing have failed to stack up, with future reductions in snow threatening to make the business untenable.

A lack of snow saw Tūroa, on the west of the mountain, close early last week. Yesterday, RAL handed over the company to administrators at PwC to see if the snow business could be saved.

Early Bird ski passes had not yet gone on sale for 2023, as they had done last year. This led many skiers to speculate that big changes were ahead for the beleaguered ski fields.

The number of season passes sold were reduced by 20 per cent last year.

As of November 30, 2020 there were 14,000 life passes in the company's database, many of whom will now be wondering what will happen to their $3950 investment.

PwC New Zealand partner, John Fisk said no plans had yet been made for current pass holders, however it would be led by what would "create best value for creditors".

"The potential for Life Pass holders (and new ones) investing new funds is being explored. We have already had a number of Life Pass holders expressing a desire to be part of finding a solution," he said.

"We will advise Life Pass holders as soon as we know more."

View of The Pinnacles and Mt Ngauruhoe at sunrise on the Whakapapa ski field, Mt Ruapehu. Photo / Supplied

Can summer activities save the ski slopes?

With increasingly unpredictable snow seasons, other ski fields have transitioned their business to include more summer activities.

Mountain biking and other year-round activities have helped balance the books for ski clubs in New Zealand and abroad.

However, any new activities must be approved by the Tongariro National Park Management Plan. Both Whakapapa and Tūroa are within the park and Ruapehu Alpine Lifts are one of the largest concessionary tourism businesses in the North Island.

With many stakeholders to appease, including the Department of Conservation and local iwi, making drastic changes to usage or infrastructure could be a challenge for administrators.

"The Department of Conservation appreciates this is a difficult time for everyone impacted by the voluntary administration of Ruapehu Alpine Lifts," says Marie Long, DoC's deputy director general national programmes and regulatory services.

While the management plan has been amended to allow consideration of cycling around Ohakune this would not cover the area operated by RAL.

"The TNPMP prohibits mountain biking in other areas of the national park," she says.

Currently DoC has notified an application by Ngāti Rangi, for a proposed cycleway around the Ohakune township, but did not have any other plans to develop routes in the park.

"The Tongariro National Park remains open and accessible, and the administrators have indicated Whakapapa ski field remains open currently," says Long.

Winter sports are an important part of the fabric of Tongariro.

Currently RAL employs 196 staff in the area and many businesses in Ohakune rely on seasonal custom brought by the ski slopes. Te Tōtarahoe o Paerangi trust of Ngāti Rangi receives annual grant revenue from operations at RAL.

The uncertain future of skiing is an uncertain future for the alpine community.

Fisk says cycling and summer money spinners could be part of a future business plan to save the ski slopes, and he would be talking to DoC and iwi about this.

“This is something being considered by the voluntary administrators. If agreement could be reached on activities permitted on the mountain, this could improve viability and increase interest from potential investors/purchasers. "