Efficiency of ski lift operators in the Nordic countries

What is it about?

This paper investigates the efficiency of ski lift companies across different climate zones based on establishment data for the Nordic countries (Finland, Norway and Sweden). Efficiency is defined as the ratio of observed output to maximum feasible output. The results show that ski areas in subarctic climate zones are far more efficient than their counterparts in warmer zones. Presence of a large local market and elevation of the ski area are factors not relevant for efficiency. Output of ski lift operators (companies) increases with the length of ski runs, number of ski lifts, share of slopes covered by snowmaking facilities and availability of fast lifts. Productivity is also significantly higher for ski lift companies owned by a large conglomerate.

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Why is it important?

Studies investigating the efficiency of ski lift companies based on internationally comparable data are rare. This is the first attempt to provide empirical evidence on the the role of climate zone for efficiency. The study also contributes to the growing literature on the performance and efficiency of tourism enterprises related to climate change. Stagnation of demand for downhill skiing as experienced in the European Alps has been observed in the Nordic countries, too.

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