Alpine Resorts 2020 Discussion Paper Victoria’S Alpine Resorts

Home , Lake Mountain (Victoria), Mount Baw Baw, Mount Buller (Victoria), Mount Donna Buang, Mount Hotham, Mount Stirling

ALPINE RESORTS 2020 DISCUSSION PAPER VICTORIA’S ALPINE RESORTS

FIGURE 1.1

Wodonga Wangaratta Ovens Hwy Hume Hwy FALLS CREEK MT STIRLING Seymour Maroondah Hwy MT HOTHAM Omeo MT BULLER LAKE MOUNTAIN

Melbourne Bairnsdale MT BAW BAW

Princes Hwy

©The State of Victoria, Department of Natural Resources and Environment 2002

This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

ISBN number 0 7311 4785 5

ACKNOWLEDGMENTS This Discussion Paper was prepared with the assistance of Sinclair Knight Merz, KPMG and CSIRO, in consultation with the Alpine Resorts Coordinating Council and each of the six Alpine Resort Management Boards. ALPINE RESORTS 2020 DISCUSSION PAPER 2 FOREWORD

The alpine resorts provide access to exciting The release of this Discussion Paper is an recreational opportunities in some of important step in the preparation of the Victoria’s most scenic environments. In Strategy. The Strategy’s successful addition to the facilities and services available implementation will rely on partnerships within the resorts, they also provide gateways forged between all stakeholders in the resorts to more remote alpine experiences. Hundreds and I encourage members of the public to of thousands of people visit the resorts every take this opportunity to participate and year with increasing numbers of visitors contribute to its development. enjoying the non winter seasons in the Alps. Vibrant resorts are important contributors to regional economies generating thousands of jobs in hospitality, services and construction.

The Victorian Government was elected on a platform that includes a strong commitment The Honourable Sherryl Garbutt MP to strengthening regional economies, Minister for Environment and Conservation protecting our natural environment and to ensuring the sustainable use of our resources.

A key initiative under this platform is the preparation of a statewide alpine resorts strategy that provides for public demands for alpine recreation within the environmental constraints of the alpine setting. Importantly, the Strategy will be aimed at ensuring that the quality of the alpine resorts is maintained and that long term planning proactively responds to the potential impacts of climate change.

3 EXECUTIVE SUMMARY

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The Discussion Paper is the first step in The lower resorts are likely to be the most The resorts have all experienced substantial the development of a strategic vision and significantly impacted by 2020, with the growth in non winter visitation over the last framework for the future planning of Victoria’s higher altitude resorts having the capacity to decade and each has opportunities to alpine resorts. increase their snow making to offset lower encourage further growth in this part of snow falls. their market. Public submissions on the Discussion Paper will inform the development of the PEOPLE AND THE RESORTS Opportunities are available to enhance the Alpine Resorts 2020 Strategy. The Strategy The six alpine resorts are a popular winter visitation at the higher and larger will provide the long term direction for recreational attraction for Victoria. Up to resorts (Mount Hotham, Falls Creek and development of the resorts, recognising the 900,000 people visit the resorts each winter Mount Buller). unique environments in which they sit without and increasing numbers visit outside the compromising their important recreational and winter season. Analysis of visitor information The smaller resorts also offer opportunities regional economic roles. from the last twenty years indicates that: providing lower cost, equitable access to • winter visitor numbers vary greatly from alpine areas and introductory experiences to THE ALPINE ENVIRONMENT year to year correlating strongly with snow snow based recreation. Alpine resorts occupy some 10-11% of the conditions; true alpine treeless area in the State and are • there has been no overall significant THE NEXT STEP: generally surrounded by National Parks. increase or decrease in winter visitor THE ALPINE RESORTS 2020 STRATEGY The alpine bioregion exhibits a range of numbers; and Consultation and response to the Discussion unique values in terms of biodiversity, water • there has been strong growth in non-winter Paper will inform the drafting of the Alpine quality and dramatic aesthetic qualities. visitation (as much as double over the last Resorts 2020 Strategy. The Strategy will It contains flora and fauna species that are decade) reflecting increased marketing in provide a sustainable framework within which highly sensitive to change in their recent years. planning at each resort can proceed taking immediate environment. into account longer term factors such as Resort character is an important changing demographic and recreation trends, Land stability is an issue highlighted by determinant in the quality of the visitor’s possible impacts of global climate change the 1997 Thredbo tragedy and the subject experience and is influenced by recreational and changing environmental and of considerable work in Victoria over opportunities, facilities, infrastructure and community expectations. recent years. variety of accommodation. THE 2020 WORKING GROUP Global climate change resulting from the ALPINE RESORT ECONOMICS An Alpine Resorts 2020 Working Group will be enhanced greenhouse effect is predicted to The resorts are key economic drivers within convened to review submissions on the have significant implications for Victoria’s their regions and have a major impact on sub Discussion Paper and guide the development alpine resorts, increasing temperatures and alpine towns. The resorts add approximately of the 2020 Strategy. Membership of the reducing precipitation. $129 million to the Victorian economy and Working Group will be drawn from the broad more than 3,740 jobs. range of stakeholders in the resorts.

5 CONTENTS

Foreword 3 Executive Summary 4

1 WHAT IS THE PURPOSE OF THIS DISCUSSION PAPER? 8 1.1 Toward a strategic vision 9 1.2 The Discussion Paper 9

2 ALPINE PLANNING AND MANAGEMENT 10 2.1 Victoria’s alpine land and its management 10 2.2 Alpine resorts 10 2.3 Who manages Victoria’s alpine resorts? 10 2.4 Who plans for the future of the alpine resorts? 11

3 SUSTAINABLE ALPINE RESORTS 12 3.1 Ecologically sustainable development 12 3.2 Policy framework 12 3.3 Sustainability factors for alpine resorts 13 3.4 Alpine dependency 13

4 THE ALPINE ENVIRONMENT 15 4.1 The alpine bioregion 15 4.2 Flora and fauna 15 4.3 Alpine catchments 15 4.4 Land Stability 16 4.5 Climate change 16 5 PEOPLE AND THE RESORTS 20 5.1 Aboriginal use 21 5.2 Recreational role and trends 21 5.3 Urban character, resort capacity 21 5.4 Infrastructure 22 5.5 Equity and accessibility 22 5.6 Access 22 5.7 Safety 23 5.8 Winter visitation 23 5.9 Future winter visitation 23 5.10 Non winter visitation 25

6 ALPINE RESORT ECONOMICS 26 6.1 Alpine resorts and the Victorian economy 27 6.2 Viability of individual resorts 30

7 THE NEXT STEP: THE ALPINE RESORTS 2020 STRATEGY 32 7.1 The Alpine resort 2020 Strategy 33 7.2 Submission on the Discussion Paper 33 7.3 The 2020 Working Group 33

References 34 Appendix 1 Winter visitation - influences, observed trends and day versus overnight visits 35 Appendix 2 Profile of winter visitors 38 WHAT IS THE PURPOSE OF THIS DISCUSSION PAPER?

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1.1 TOWARD A STRATEGIC VISION Key issues identified and discussed include: The State Government is committed to • planning and management; developing a strategic vision for Victoria’s • sustainability; alpine resorts. • biological diversity; • climate change and the impact on snow The Victorian Alpine Resorts 2020 Strategy is conditions; being prepared to guide the sustainable long • resort visitation; and term management of Victoria’s six alpine • economic viability. resorts, Falls Creek, Lake Mountain, Mount Hotham, Mount Baw Baw, Mount Buller and The release of the Discussion Paper is an Mount Stirling. opportunity for all interested Victorians to comment on the above and become involved The alpine resorts are a popular year round in the development of a strategic vision for recreational resource that provide important the resorts. contributions to regional Victoria and the State’s economy as a whole, as valuable tourism products. The alpine resorts are however, located in environmentally sensitive areas, generally surrounded by National Parks where environmental protection is of paramount importance.

1.2 THE DISCUSSION PAPER The first step in the process of developing a vision and Strategy is the identification and discussion of the key issues likely to impact on the future of the alpine resorts. This Discussion Paper has been prepared following preliminary consultation with stakeholders in the resorts and seeks to facilitate a common understanding of the issues and a basis for informed discussion.

9 ALPINE PLANNING AND MANAGEMENT

2.1 VICTORIA’S ALPINE LAND AND ITS MANAGEMENT 2.2 ALPINE RESORTS The functions of the ARCC include: The Victorian Alps bioregion (land above Today’s alpine resorts are small sections of - to make recommendations to the Minister 1200 metres in altitude) is approximately intensively used alpine land totalling 105 km2 on matters related to the provision and 3000 km2 in area. The Alps extend along the (3.5 % of the Victorian Alps bioregion or 10- improvement of services and facilities in Great Dividing Range and consist of a series 11% of the true treeless alpine area). alpine resorts; of peaks and high plateaus from the Baw Consistent with the LCC recommendations, - to co-ordinate, in conjunction with Tourism Baw Plateau in the south, to the New South they were declared as alpine resorts under Victoria, the overall promotion of alpine Wales border where it meets the Snowy the Alpine Resorts Act 1983. Historically, resorts; and Mountains. With the exception of several each resort had been managed by a different - to attract investment for the improvement relatively small parcels of freehold land, near agency, ranging from the State Electricity of the alpine resorts. and including Dinner Plain east of Mount Commission to the Forests Commission and Hotham, all Victorian alpine land is Crown the Lands Department. The Alpine Resorts Act The functions of each of the six ARMBs land (ie. held in public ownership). 1983 provided for coordinated planning and include: management of these relatively intensively - to act as a Committee of Management for In 1979, the Land Conservation Council used recreational areas. Crown land within the resorts; (LCC) issued a report on its investigation and - to contribute to the overall promotion of recommendations for the alpine area. The Figure 1.1 shows the location of Victoria’s six alpine resorts in conjunction with the LCC report recommended the establishment alpine resorts being: ARCC and Tourism Victoria; of the Alpine National Park which now •Mount Buller; •Mount Baw Baw; - to develop a tourism and marketing encompasses most of Victoria’s alpine Crown •Falls Creek; •Mount Stirling; and strategy for each resort; land. The National Parks Act 1975 provides •Mount Hotham; •Lake Mountain. - to provide services including garbage objectives for the management of this land, disposal, water supply, gas, drainage, generally being the protection of its natural Mount St Gwinear, Mount Buffalo and Mount sewerage, electricity, roads, fire protection, values and provision for public use. Donna Buang are also important access snow making, and transport services; points to the Alps, however they provide - to collect fees for the resort; and The LCC report also recommended that ski limited facilities and are less intensively used. - to attract investment for the resort. villages and associated areas including Mount They are not alpine resorts but are managed Hotham, Falls Creek, Mount Buller, Mount as part of larger national parks. The ARMBs are bound by the Act to perform Stirling and Lake Mountain, be reserved as their functions in an environmentally sound alpine resorts and managed by Committees 2.3 WHO MANAGES VICTORIA’S ALPINE RESORTS? manner. of Management. Similar recommendations A review of the Alpine Resorts Act 1983 were made for Mount Baw Baw by the LCC, resulted in the Alpine Resorts (Management) Each ARMB is responsible for the financial in 1977. Act 1997 (“the Act”) which established the viability of the alpine resort that it manages. Alpine Resorts Coordinating Council (ARCC) Funding sources include entry fees (which are and an Alpine Resort Management Board regulated), fees for specific activities, site (ARMB) for each of the six resorts. rentals and service charges.

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2.4 WHO PLANS FOR THE FUTURE OF THE ALPINE Figure 2.1 describes the relationship between RESORTS? the 2020 Strategy and other planning An election commitment of the State documents. Government is the development of: • a statewide strategy for alpine resorts ARMBs will be required to prepare which includes consideration of the management plans in line with the Alpine potential impacts of climate change; and Resorts 2020 Strategy. • a management plan for each resort which sets realistic targets for maximum The Alpine Resorts Planning Scheme applies development of accommodation and to all Victorian alpine resorts and is usage of the mountain. administered by the Alpine Planning Unit of the Department of Infrastructure on behalf of the This Discussion Paper will inform the Minister for Planning. The Alpine Resorts development of the statewide strategy (Alpine 2020 Strategy and each resort’s management Resorts 2020 Strategy) which will be plans will become the policy to guide land use prepared by the Department of Natural planning decisions. Resources and Environment.

FIGURE 2.1: ROLE OF ALPINE RESORTS 2020 STRATEGY

11 SUSTAINABLE ALPINE RESORTS

3.1 ECOLOGICALLY SUSTAINABLE DEVELOPMENT 3.2 POLICY FRAMEWORK 3.2.1 Biological diversity The concept of ecologically sustainable The following is a list of legislation, policy and The National and State strategies contain the development (ESD) is well embedded in strategies which are particularly pertinent to objective that there should be a reversal of Victorian Government policy for the ecologically sustainable development in alpine the long term decline in condition and extent management of social, economic and resorts. of native vegetation by 2001. environmental resources. An understanding • Australian National Strategy for and framework for ESD was established in Ecologically Sustainable Development Victoria’s draft Native Vegetation Management the 1992 National Strategy for Ecologically (ESD) 1992; Framework proposes a new strategic and Sustainable Development which used the • National Strategy for Conservation of operational approach to moving towards a net following definition: Australia’s Biodiversity; gain in the condition and extent of native • Commonwealth Environmental Protection vegetation. Development that improves the total and Biodiversity Conservation Act 1999; quality of life, both now and in the future, • Victorian Greenhouse Strategy Discussion Alpine regions are harsh, highly sensitive in a way that maintains the ecological Paper 2000; environments and rehabilitation is difficult. processes on which life depends. • Victoria’s Biodiversity Strategy 1997; Victoria’s Biodiversity Strategy (1997) builds • Victorian Flora and Fauna Guarantee Act on the principles contained in the Flora and Or in more simple terms: 1988; Fauna Guarantee Act 1988 and the Action • Tourism Victoria Strategic Plan; and Statements prepared under that Act. ESD is development, which aims to meet • State Environment Protection Policy – the needs of people today without Waters of Victoria. Action Statements have been prepared for compromising the ability of future many species found in the alpine resorts such generations to meet their own needs. Key principles drawn from the above as the Mountain Pygmy Possum. legislation, policy and strategy include the Integral to the above understanding of ESD is: following: 3.2.2 The precautionary principle • biological diversity; The precautionary principle is one of the 1. the need to consider the economic, social • the precautionary principle; and fundamental tenets of sustainable and environmental implications of • the economic and social well being of development and has been defined as follows: decisions in an integrated way; and regional communities. 2. taking a long term view rather than a short Where there are threats of serious or term view when making those decisions. irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation. (National Strategy for Ecologically Sustainable Development 1992) 03

Application of the precautionary principle is 3.3 SUSTAINABILITY FACTORS FOR ALPINE RESORTS 3.4 ALPINE DEPENDENCY particularly relevant to considering the risks The ecologically sustainable management and "Alpine dependency" is a useful concept to associated with global climate change and development of Victoria’s alpine resorts determine the types of services or environmental issues such as biodiversity requires integrated consideration of the experiences that may be appropriate in alpine and habitat protection. following: resorts through the winter or non-winter • Environmental impact including: period. 3.2.3 Economic and social well being of regional - biological diversity and the health of communities flora and fauna; There is an enormous range of recreational The need to improve infrastructure to - climate change and the implications opportunities which can potentially be enhance the economic and social well being for future snow cover; and provided in the resorts. Clearly, snow skiing is of regional communities is an important - quality and quantity of water use, alpine dependent and cannot be provided component of the government platform waste water disposal and the impacts elsewhere. “Growing the whole of Victoria.” The on catchments. importance of the Alps to regional tourism in • Community or user satisfaction with the Other potential uses are not alpine dependent both winter and non-winter, is highlighted in resort experience including: with opportunities being available in sub the Tourism Victoria Strategic Plan. - the recreational role of the resorts; alpine towns or elsewhere. The question of - equity and the provision of access to uses that are and are not alpine dependent, “Victoria’s Alpine Resorts - Economic the alpine experience for the broad will be considered further in the Strategy. Significance Study 2000” concludes that the community; Resorts are a major component of their - urban character, resort capacity and Key questions for further discussion regions’ economies supporting approximately infrastructure; 3,738 jobs across the State and contributing - safety; 1. The Victorian Government is committed to $129 million annually to Victoria’s economy. - winter visitation; and the principles of ecologically sustainable - non winter visitation. development. What is your view on how The Resorts provide further opportunities to • Economic viability including: these principles should be applied in the strengthen regional economies through - contribution to the Victorian economy; alpine resorts? construction projects, traditional winter - contribution to regional economies; and 2. What do you think are the key issues in employment and in the rapidly growing non- - individual resort vitality. achieving the best balance of winter tourism industry. environmental protection, economic A more detailed discussion of the above is growth, and social considerations? made in subsequent sections of this paper. 3. What is an "alpine dependent" use? What types of activities do you think should be encouraged/discouraged in the alpine resorts during the winter or non-winter seasons?

13 THE ALPINE ENVIRONMENT

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4.1 THE ALPINE BIOREGION The ecological communities found in the weed invasion or climate change. Maintaining In the Australian context, the alpine area alpine region are generally limited in extent them in as healthy a condition as possible represents a very small unique environment and are frequently located as "islands" that enhances the robustness of the alpine on a dry, low continent. The Australian Alps is are physically separated from each other, communities to cope with climate change. one of the lowest alpine regions in the world often having their own unique species or and was formed some 500 million years ago. subspecies such as the Baw Baw Frog. 4.3 ALPINE CATCHMENTS It has been eroded by water and subjected to The true alpine treeless area contains The alpine region contains the source of cycles of freeze and thaw. Granite and many communities that are extremely important rivers systems including the Murray, sandstone peaks remain with rounded limited in extent. Goulburn, Ovens, King, Kiewa, Mitta Mitta, La mountain tops and plateaus. Trobe, Yarra and Mitchell Rivers. The resorts High altitude slopes that provide premium are located in the headwaters of these river Climatic conditions are harsh with the area skiing conditions often correlate with the systems and as a consequence, the subject to high winds, low temperatures restricted habitats of threatened or significant maintenance of water quality, control of and typically covered in snow for four months flora and fauna. Many of these species and runoff and effective catchment management per year. habitats are highly vulnerable to adverse are particularly important to ensure down impact from soil disturbance, erosion and stream water quality. 4.2 FLORA AND FAUNA deterioration in water quality, resulting in The Victorian Alps bioregion contains a rich potential tensions with skifield development. Slope stability and altered hydrological diversity of native flora and fauna species and regimes associated with skifield drainage and exhibits a high degree of ecological sensitivity. There are 64 known threatened species and water consumption, potentially threaten Moderate slopes have provided for the an undetermined number of threatened ecosystems and impact on the quality of establishment of grasslands, herbfields, ecological communities in the region (NRE, water available to downstream domestic and heathlands, woodlands and alpine bog 1997). They include: agricultural users. communities, each adapted to particular - Snowpatch Community; soils, water regimes and microclimate. - Alpine Bog Community; Climate change has the potential to alter the - the Mountain Pygmy Possum at Falls hydrology of river systems within the alpine Many species migrate to the Alps seasonally Creek, Mount Hotham and Mount Buller; region. This may have direct or indirect to feed on the abundant food resources - the Stonefly at Mount Stirling and Mount effects on the ability to secure a reliable including millions of Bogong Moths. The Buller; and source of water for snow making activities. Moths make one of the largest insect - the Barred Galaxias, a small native fish Furthermore, increased reliance on artificial migrations in the world (approximately 600 found at Lake Mountain. snow making, the associated water km from western NSW) to enjoy the Alps’ consumption and the potential to source cool summer climate. Many of the alpine ecological communities water from one catchment to make snow in and species have become highly adapted to another may also impact on the hydrology their environment and are extremely sensitive of river systems. to change resulting from influences such as

15 4.4 LAND STABILITY The review has included a geotechnical The 1997 landslip at Thredbo alpine resort in hazard assessment of all developed sites, New South Wales was one of the hundreds of proposed development sites, roads and car landslides reported over the last 200 years of parks at the resorts. Remedial works have European occupation of Australia - many of been completed for "high" and "very high" which have resulted in loss of life and major hazard sites. All remaining sites are being damage to property. The loss of eighteen lives managed accordingly by the ARMBs. and two lodges at Thredbo was caused by a leaking water main in a roadway built for 4.5 CLIMATE CHANGE short term use during the construction of the The World Meteorological Organisation Snowy Mountains Hydro Electricity Scheme, (WMO) and the United Nations Environment not for long term resort access. Program (UNEP) established the Intergovernmental Panel on Climate The underlying geology and the development Change (IPCC) in 1988. The role of the history of Victoria’s alpine resorts share many IPCC is to assess the scientific, technical parallels with Thredbo Village. Since the and socio-economic information relevant Thredbo tragedy, a comprehensive review of for understanding the risk of human-induced the land stability of Victoria’s six alpine climate change. resorts has been completed.

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The IPCC in its recent Third Assessment 4.5.1 Current snow conditions Report (2001) concluded: Current snow cover conditions in the Victorian Alps may be characterised as follows: An increasing body of observations gives • an average snow season of 100 days, with a collective picture of a warming world a snow pack depth of more than 60 cm and other changes in the climate system. common from mid-June to early September; Significant increases in atmospheric • substantial inter-annual variability of concentrations of greenhouse gases have snowfalls due to highly variable occurred since pre-industrial times (IPCC, precipitation and relatively low altitudes; 1996). At the same time, it is estimated and that global mean temperatures have • snow cover duration that is highly sensitive increased by between 0.3ºC and 0.6ºC to changes in temperature, particularly at during the last 150 years (Ledley et al, lower elevations. 1999). Atmospheric greenhouse gas concentrations are likely to continue to 4.5.2 Impact of climate change on snow conditions rise, at least in the short to medium term, The Climate Impact Group of the CSIRO has even allowing for the global effort to curb prepared alpine region climate change the current increasing emissions of scenarios for the years 2030 and 2070 greenhouse gases. which, while beyond the 2020 horizon of the Discussion Paper, provide the best informed Current global climate change forecasts assessment of the likely impact on Victoria’s indicate that it may be expected that the Alps. The scenarios are based on the 1996 Alps will become warmer and drier. predictions of the Intergovernmental Panel Prevailing temperatures and precipitation on Climate Change. influence snowfalls and as a consequence snow cover in the Victorian Alps may be particularly vulnerable to global warming.

17 Snow cover modelling of areas having more To date inter-annual variability has made it Temperatures below –5 ºC and humidity less than an average of 30 days natural cover in difficult to detect significant long term than 65% are ideal conditions for snow NSW and Victoria undertaken by Whetton et al, trends in snow cover that may be associated making. However, production under more (1996) concludes that snow cover duration with climate change. It is however, expected marginal conditions is possible to wet bulb will reduce by between 18 and 66% by 2030. that ski seasons will become shorter and temperatures of up to –1 ºC depending on more marginal and that there will be an the technology employed (Koenig, 1998). The Using these regional climate change increase in the frequency of winters with Mount Hotham Ski Company has reported scenarios, Koenig (1998) has also little natural snow. that for snow making to be possible, wet bulb undertaken a study that investigated the temperatures must be below –2 ºC (MHSC implications of climate change for winter As a result of the complexities involved in Ltd, 1997). Retention of artificial snow is also tourism in the Australian Alps. Koenig predicting the impact of a very complex dependent on prevailing temperatures, adopted the premise that Australian skifields meteorological phenomenon, it should be however little is known about the exact nature with snow cover for at least 60 days during noted that there are limitations in the studies of the relationship. the ski season may be considered as "snow referred to above. Significant weight should reliable", and hence capable of maintaining not be placed on the precision of the absolute Climate change to the extent predicted will financially viable ski operations. duration of snow cover quoted above. Rather, still provide periods when snow making is the model provides a reasonable simulation of possible using existing techniques. It may be As well as looking at average snow cover the sensitivities of snow cover duration to anticipated however, that these periods will duration, the frequency of "good" and "poor" changes in temperature and precipitation. be shorter and as a result an increased years has been reviewed in other studies (eg. capacity in snow making may be required. An Whetton et al, 1996). In the future, "good" 4.5.3 Implications of climate change for snow making increased capacity in snow making would add snow years are expected to decrease while Any reduction in snow cover resulting from to resort operating costs and require "poor" years are expected to become more climate change will increase reliance on snow additional water supply (note: total winter frequent. On the basis of more than 50 years making. Artificial snow is currently used to precipitation is forecast to decline). of data, in general terms there have been augment natural snow at Mount Hotham, roughly three years in five with average snow Falls Creek and Mount Buller with more It is possible to produce artificial snow at cover, one year in five with good cover, and limited systems at Lake Mountain and Mount higher temperatures than those referred to one year in five with very poor cover. Baw Baw. above. To make snow at higher temperatures however, requires more expensive production techniques (NIEIR, 1998), further adding to resort operating costs.

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Snow making will play an increasingly important role in the capacity of the resorts to compensate for inter-annual variability of snow cover and effects of climate change on snow cover in the short to medium term. However, the longer-term viability of snow making in terms of production and retention of artificial snow requires further investigation. In the short to medium term, snow making may offset some of the potential effects of reduced snow cover, particularly at the higher resorts.

Key questions for further discussion

1. How should the impact of the resorts on the natural alpine environment be managed? 2. Where should future environmental management efforts be focused? 3. What is the most appropriate way in which to manage the uncertainties associated with climate change? 4. What additional research will help the resorts plan for the impacts to climate change? 5. How can resorts adapt to the climate changes predicted in the next 20 years?

19 PEOPLE AND THE RESORTS

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5.1 ABORIGINAL USE • cross country skiing declined from 23% to 5.3.1 Accommodation Mix Aboriginal groups visited Victoria’s alpine 11% of winter visitors between 1992 and The opportunity to stay on the mountain region during annual movements over 1998. This may be due to poor conditions above the snow line is a unique experience summer months. The area was important for at cross country skiing resorts (particularly not offered at alternative winter destinations cultural exchange between Aboriginal groups Lake Mountain); and such as New Zealand. Accommodation within from north and south of the ranges who • there is a relatively high proportion of Victoria’s resorts is a mix of commercially run congregated to feast on the seasonally snow visitors who do not engage in skiing. premises, private apartments and club abundant Bogong moths. lodges. Increasingly the resorts are providing year There are however, few recorded sites of round recreational services to visitors to the Club lodges have traditionally played an indigenous heritage significance within the Alps and serve as an important gateway into important role in the development of the alpine resorts. This may reflect the generally more remote areas. alpine resorts both physically and culturally. low level of investigation that has been They offer a friendly and affordable undertaken to date. 5.3 URBAN CHARACTER, RESORT CAPACITY introduction to the resorts, generally Urban character is a function of factors such operating on a non profit basis and achieve 5.2 RECREATIONAL ROLE AND TRENDS as the natural and constructed landscape or high levels of use. The Victorian alpine resorts provide a popular urban design of the village, facilities available recreational resource. Snow-related activities in the village, the variety of accommodation More recently development has tended undertaken at the resorts include downhill available and proximity to the skifields. toward individually owned apartments. skiing, snowboarding, cross-country skiing Prevailing climate is another factor and snow-play. contributing to the quality of the resort A healthy balance between accommodation experience. types is important to maintain diversity and The following picture of visitor activity across ensure equitable access is available to the the resorts has been compiled from gate The quality of the resort experience and the broader community. entry surveys undertaken at all resorts by the potential resort capacity is optimised by former Alpine Resorts Commission from 1988 achieving a balance of a number of factors to 1998: including: • overall in 1996, 61% of winter visitors to • alpine skifield design and capacity (a Victorian resorts participated mainly in balance of beginner, intermediate and downhill skiing, 15% in cross country advanced terrain); skiing and 11% in snowboarding; • non-winter recreational activities; • consistent participation trends are evident • visitor facilities and overnight for snowboarding which increased from 1% accommodation capacity; to 8% of winter visitors between 1992 and • infrastructure capacity (power, water, 1998. Surveys undertaken in 1996 wastewater etc.); and indicate that a relatively high proportion of • road access and parking capacity. new and experienced skiers try snow boarding;

21 5.3.2 Leasing Policy needs of lift operations, under road heating Mount Baw Baw markets itself as a family A key part of Victorian resorts’ competitive and snow-making. Electricity suppliers are mountain providing a low cost experience advantage is the broad range of attempting to achieve greater utilisation of including introductory and intermediate accommodation opportunities and apres ski the power supply assets outside the winter lifted terrain, cross country skiing and lodge facilities available above the snow line. season at those resorts connected to the style accommodation. Mount Baw Baw is Government policy on the allocation and electricity transmission network (ie. Mount attractive to a wide cross section of socio- leasing of commercial properties and clubs in Hotham, Falls Creek and Mount Buller). economic groups. alpine resorts, is an important tool available Opportunities exist to reduce electricity to help maintain this advantage. use through a range of energy efficiency Lake Mountain is the closest resort to measures. Melbourne and there is an extensive trail Leasing decisions are driven by: network for cross country skiers in the • improved social and economic outcomes Adequate and good quality water supply for surrounding Yarra Ranges National Park. It is to the Victorian community; domestic use is also critical to each of the highly accessible for school groups and • a fair and open process with equitable resorts. Additional water supplies are being families, providing an important introduction terms and conditions consistent with sought for planned expansion of snow-making to the snow for many visitors. probity standards, commercial property facilities. A trial is underway at Mount Buller standards and National Competition Policy on reuse of treated waste water for snow- Mount Stirling provides a "back country" principles; making as a means of reducing future fresh nordic skiing experience for skiers on • protection of the public land values of the water demands. intermediate and advanced terrain together site; with nature based activities. • consideration of the most appropriate use 5.5 EQUITY AND ACCESSIBILITY of the land; and The resorts each play distinct and important Lake Mountain and Mount Stirling provide • contribution to the community’s use, roles in providing varied alpine experiences for minimal facilities for the visitors relying on enjoyment and access to Crown land. different visitors. their natural settings to attract visitation.

Terms and conditions, including the length of The three larger more developed resorts at Other alpine destinations such as Mount St leases, are negotiated to encourage Mount Hotham, Mount Buller and Falls Creek Gwinear, Mount Donna Buang and Mount appropriate long term investment in each of provide extensive resort style experiences Buffalo, are managed by Parks Victoria and the resorts. including accommodation, restaurants and provide a variety of alpine experiences. With nightclubs. In winter they offer snow play and the exception of Mount Buffalo ski area and 5.4 INFRASTRUCTURE lifted areas for skiers and snow boarders of Chalet, these areas generally have relatively Adequate capacity and reliability of electricity all skill levels. Mount Hotham and Falls Creek basic facilities and lower entry fees. and gas supplies are critical to each of the also offer groomed trails for cross country resorts. The alpine resorts have high levels of skiers and access to more remote back 5.6 ACCESS energy usage per capita, taking into account country skiing. Provision of high standard sealed roads that the heating needs of buildings and power enable safe, all year round travel is a key

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issue for each of the alpine resorts. Factors Snow Safety Inc has been established in Development Proposal and Environment to be considered include traffic capacity, response to the safety issues at the resorts. Effects Statement; alignment standard, provision of overtaking Snow Safety Inc is a cooperative of Victorian • 5% per annum by Ecosign 1989 in Mount opportunities, route signage, traveller alpine resorts, ski lift companies and Victorian Buller/Mount Stirling Alpine Resort information about road conditions, snow government departments. It is committed to Development Plan – 1989; and clearing operations, provision of chain fitting the year-round safety of visitors to the • 2 to 4.6% per annum by Travers Morgan areas and provision of scenic lookouts and Victorian Alps and has produced a Snow Safe 1989 in Skier Market Study. rest areas. Booklet and an Alpine Responsibility Code. 5.9.2 Demographic trends Improvements to the standard of road access 5.8 WINTER VISITATION Population projections for Victoria (DoI, 2000) will provide touring opportunities and support The major driver of resort economic vitality is estimate a growth rate of 7.1% over the non-winter visitation. visitation. Figure 5.1 shows the total winter decade to 2010 and 5.2% from 2010 to visitation (visitor numbers and visitor days) to 2020. Melbourne’s population is estimated Aerial access is also an alternative with the all the resorts between 1980 and 2000. to increase by 8.4% (2000-2010) and 5.7% recent opening of the Horse Hill Plain airport (2010-2020). near Dinner Plain and helicopter links Between 1980 and 2000 total winter between resorts. visitation was generally in the range of A marked ageing of the Victorian population 600,000 to 800,000 visitors and 1,100,000 from 2000 to 2010 and continuing over the 5.7 SAFETY to 1,250,000 visitor days. Peaks of 900,000 next decade to 2020 will accompany There is a broad range of safety issues visitors or approximately 1,500,000 visitor population growth to 2020. relevant to the alpine resorts. Key factors days occur during very good seasons. for consideration include snow safety, road These projections show that Victorian access, geotechnical issues and emergency 5.9 FUTURE WINTER VISITATION population growth will only be modest at less management. Given the large number of The level of visitation that may be expected in than 1% per annum. In terms of influences visitors to the resorts and the hazardous the future is highly variable and will rely on on visitation to the resorts, it is likely that this nature of some alpine activities, particularly snow cover, changing demographics and growth in the Victorian catchment will be off- winter activities, public safety remains a leisure trends. set by the marked ageing of the population, significant management issue for all given the reduced participation in active relevant parties. 5.9.1 Historic visitation projections recreation by the older age groups. Surveys Growth projections made in the 1980’s in a indicate that the proportion of snow visitors The ARMBs have responsibility for preparing series of studies ranged from 2% to 15% per involved in active skiing reduces with age, Emergency Management Plans and annum. although there is still a reasonable coordinating their activities with lead agencies • 15% per annum by Report of the Ski proportion of older people involved in snow such as Police, CFA, NRE and the SES to Industry of Victoria Working Party in 1980; play activities. ensure effective response to incidents. • 10-12% per annum by Loder and Bayly 1982 in Mount Stirling Alpine Resort:

23 Figure 5.2 shows the visitor numbers at each Visitor Days of the resorts since 1989. It indicates that FIG 5.1 WINTER VISITATION 1980-2001 Visitors there have been strong inter-annual variations in visitation across all of the resorts. 1500 Figures 5.1 and 5.2 also indicate that over 1200 the last twenty years there has been no significant overall increase or decrease in 900 visitation to the resorts.

600 Appendix 1 provides further detail on: • factors influencing winter visitation;

Visitors ('000s) 300 • the observed visitation trends over the last 15 years; and

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 • day visits and overnight visits.

Year Appendix 2 provides a profile of visitors to Victorian Alpine Resorts.

FIG 5.2 WINTER VISITATION MT BULLER MT HOTHAM NUMBERS BY RESORT FALLS CK MT BAW BAW 1990-2001 LAKE MTN MT STIRLING 600 500 400 300 200 100

Visitors ('000s) 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Year

24 05 TABLE 5.3: NON-WINTER VISITATION

Resort Non-winter visitation estimate

Mount Hotham 102,000 Falls Creek 101,000 Mount Buller 133,000 Mount Stirling 67,000 Lake Mountain 50,000 Mount Baw Baw 11,000

5.9.3 Changing leisure trends Based on the figures presented, Mount Changes to leisure trends will have an Stirling is the only Victorian alpine resort with influence on future visitation to the resorts. greater non-winter than winter visitation. Aside from the reduced participation of an ageing population in active recreation, the Research commissioned by Tourism Victoria following trends are important: and the Alpine Resorts Commission in 1996 • participation in adventure travel and revealed a lack of interest and ignorance adventure sports will grow, particularly about non-winter conditions and recreational among the younger generation; opportunities at the alpine resorts. "Lack of • people will increasingly seek holiday interest" was stated by 28% of respondents experiences which allow an escape from as the major reason for not visiting the urban life and demand for travel to resorts outside the winter season. wilderness areas will increase; Approximately 18% of respondents had never • airfare ticket prices are likely to decline thought about it and 18% thought it was too further resulting in increased competition expensive. The 1996 survey showed that with other holiday destinations both within recent winter visitors were more likely to also Australia and overseas; and be non-winter visitors. • move toward shorter (perhaps more frequent) holidays. Anecdotal evidence from ARMBs and resort facility operators indicates that promotion of The first two factors identified have the the non-winter attractions of the alpine potential to result in increased visitation not resorts through events and other marketing is only in winter but also outside the winter raising the profile of the resorts and that non- season as demand for "nature based" winter visitation in recent years has grown holidays increase. The resorts will however, noticeably. The "Summer In The High have to maintain their competitiveness Country" marketing campaign and the sealing against interstate and overseas destinations of the Great Alpine Road touring route have (for alpine and other recreational pursuits) as both had positive effects. these become more affordable to the potential market. Key questions for further discussion

5.10 NON WINTER VISITATION 1. How do we ensure alpine resorts are While the most intense visitation takes place accessible to the broad community? over winter and is highly dependent on snow 2. What types of accommodation and other conditions, non-winter visitation is substantial facilities should be encouraged in the and increasing as a proportion of total future? visitation. 3. How much growth in winter visitation to the alpine resorts should be anticipated? There is limited data available on non-winter 4. As snow cover becomes less reliable at the visitation at the alpine resorts. Table 5.3 lower resorts, will their winter visitors summarises estimated non-winter visitation at transfer to higher resorts? If so where? each of the resorts compiled from a range of 5. What can be done to increase visitation at information sources including the ARMBs and the resorts through the non-winter traffic count information. seasons? 6. What sort of activities in the alpine resorts 25 do you think will become more popular? ALPINE RESORT ECONOMICS

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6.1 ALPINE RESORTS AND THE VICTORIAN ECONOMY from the ARCC, ARMBs, lift companies and The alpine resorts are a significant tourism bodies. The surveys focussed upon component of Victoria's tourism industry, with visitor spending data while the secondary Tourism Victoria recognising snow based sources provided data including visitation recreation and the alpine resorts as one of levels and capital expenditure. Victoria’s product strengths. Strategies identified by Tourism Victoria highlight the The main findings of the 2000 report can be need to maintain a balance between downhill summarised as follows. skiing, snow boarding, cross country skiing and other snow related activities, the 6.1.1 Winter season (approximately 4 months) importance of non-snow, nature based A total of 827,752 visitors spent 1,486,659 activities, and the potential of the alpine days at the resorts during what was a very resorts to provide these activities during the good snow season. Non-Victorian visitors non-winter period. accounted for 251,522 visitor days, or 16.9% of total visitors. The following is an extract from a report by KPMG Consulting and the Centre for South The average spending level of alpine resort Australian Economic Studies on the net visitors during the winter season was economic contribution made by Victoria’s estimated at $142 per day, ranging from alpine resorts to the local, state and national $163 per day for interstate visitors to $136 economies during the year 2000. It updates per day for visitors from regional Victoria. a previous study completed on much the Total spending associated with the visits to same subject in 1993, which related to the the resorts was calculated as $211 million, 1991 winter season. with spending shared between the resorts ($107 million), sub-alpine towns ($21 The resorts considered within the 2000 million), en-route ($10 million), home study were: towns ($14 million) and on equipment & • Mount Buller • Falls Creek clothing ($59 million). Of the $21 million • Mount Hotham • Mount Baw Baw spent in sub-alpine towns, more than half • Mount Stirling • Lake Mountain. was spent within Mansfield, Bright, Myrtleford and Marysville with more than $1 million The 2000 study was based upon a also spent in Mount Beauty/Tawonga and combination of primary data gained from Dinner Plain. surveys completed by visitors to the resorts during both the winter and non-winter seasons, as well as secondary data obtained

27 The activities of visitors to the resorts during non-winter season is twice the length of the 6.1.4 Aggregate impacts the winter season led to estimated value winter season and value adds significantly to The alpine resorts and High Country attracted added spending within the Victorian economy the Victorian economy, particularly because 1,281,419 visitors during 2000. Visitors of $70 million and supported 2,219 jobs. of the relatively higher numbers of non- spent 2,208,927 days on these trips, with Victorians. 23.6% of these days attributable to non- 6.1.2 Non-winter season (approximately 8 months) Victorians. The average expenditure of these A total of 453,667 visitors spent 722,268 *Note: Non-winter trips to the High Country involve visitors was $122 per day, or $268 million in days within the High Country directly multiple destinations. The above spending figures total. Estimated value added spending to the associated with a visit to a resort. Non- represent visitors who visited a resort and may also Victorian economy was $99.5 million, with Victorian visitors accounted for 37.2% of have spent time in adjacent national parks. 3,181 jobs supported. visitor days, a significantly higher proportion than during the winter season. 6.1.3 The resorts and sub alpine towns In addition, capital expenditure associated The alpine resorts rely on sub alpine towns to with the resorts added a further $29.1 million The average spending level of alpine resort provide support services such as food, fuel in estimated value added spending and visitors during the non-winter season was and other supplies, waste removal and supported an additional 557 jobs within the estimated at $79 per day, ranging from $87 seasonal labour. Approximately 60% of capital Victorian economy. per day for non-Victorian visitors to $73 per expenditure (construction projects) is spent day for visitors from Melbourne. Spending within the region with the balance being Total estimated value added spending was associated with visits to the resorts and imported materials. therefore $128.6 million and 3,738 jobs adjacent national parks was estimated as were supported within the Victorian $57 million, with spending shared between Similarly, much of the business in sub alpine economy as a result of the operations of the the resorts ($12 million), elsewhere in the towns is driven by demand generated by the alpine resorts. High Country ($13 million), en-route ($16 resorts (accommodation, restaurants, tour million), home towns ($9 million) and on operators and ski hire, etc.). Approximately 6.1.5 Comparison to the 1993 economic study equipment ($7 million)*. The distribution of 60% of package tour expenditure (nominally In order to enable direct comparison with the spending during the non-winter season was made in the visitor’s home town) is 1993 study (which was based upon data more evenly spread than during the winter channelled back to operators in the region. from the 1991 season), it was necessary to season when more than half of all spending Visitors spend 10% of a winter trip’s budget make some adjustments to the data from was directed to the resorts themselves. in the region around the resorts while in that study. Such adjustments removed data summer, 23% of their trip’s budget is spent relating to Mount Buffalo, incorporated more Visitation to the High Country during the non- within in the region on their way to or from recent economic multiplier tables, converted winter season led to estimated value added the resorts. spending data to present day values and also spending within the Victorian economy of accounted for a methodological mistake in $30 million and supported 962 jobs. The calculating total winter visitor expenditure.

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With these adjustments completed, the following comparisons could be made for the winter 6.1.6 Discussion seasons: The data indicates a fall in both the proportion and the actual number of non- Victorian visitors during the winter season. 1991 2000 The resorts are an important tourism asset for the State and a fall in "export" earnings Visitors 763,000 827,752 flowing from non-Victorian visitors, raises Visitor days 1,207,000 1,486,659 concerns about Victoria’s competitive position Proportion non-Victorian 23.9% 16.9% in the skiing and alpine tourism market. The Spend per day $140 $142 fall in the proportion of non-Victorians may be Total spending $169 million $211 million a 2000 season aberration due to the very Value added spending $71 million $70 million good snow conditions – local skiers are better Jobs 2,332 2,219 placed to make impromptu additional visits during a long season. However, the fall in the While the number of visitors, visitor days and total spending in 2000 showed a significant actual number of non-Victorians against the increase compared to 1991, the decrease in non-Victorian visitors as a proportion of the total 1991 season is of more concern. Further led to little change in value added spending and jobs supported within the Victorian economy. investigation is required to determine whether Victorian resorts are losing their competitive A comparison of data for the non-winter seasons is also provided below: position against skiing destinations such as NSW, New Zealand or the northern hemisphere (or other non-skiing attractions). 1991 2000 While there is scope for debate about the Visitors 105,100 453,667 proportion of non-winter High Country Visitor days 209,580 722,268 expenditure that can be attributed to the Proportion non-Victorian 20.0% 37.2% resorts, it is clear that there is a significant Spend per day $136 $79 increase in the level of non-winter activity in Total spending $29 million $57 million several resorts. Non-winter visitation has Value added spending $14 million $30 million doubled over the last decade. The mix of Jobs 472 962 winter and non-winter marketing, infrastructure and service provision should acknowledge this growth. Due to a number of differences in methodology, it is difficult to compare data for the two non- winter seasons. However, it is apparent that visitation levels to the High Country have increased significantly throughout the 1990s.

29 6.2 VIABILITY OF INDIVIDUAL RESORTS opportunity to capitalise on better existing presence of threatened fauna species and A number of conclusions may be drawn about links with the adjoining Alpine National Park. important habitat areas at the resort. the future viability of individual alpine resorts. The designation of the Great Alpine Road as a Opportunities at Mount Buller include the It is important to note that financial viability major tourist route also provides an potential to provide a link to Mount Stirling for the purposes of this Discussion Paper has opportunity to increase summer visitation at and the presence of a diverse range of been based on an assessment of the current Mount Hotham. facilities and activities that already exist at situation at each of the resorts and an the resort. analysis of the last two years of operation of Specific constraints at Mount Hotham include the ARMBs as reported in their annual the under supply of beginner and The protection of habitat for the endangered reports. A financial profit has been taken to intermediate ski terrain and the need to Mountain Pygmy Possum is a key challenge mean a net profit or cash surplus. augment the water supply which will limit to achieving future sustainability at each of future downhill skifield expansion and alpine these resorts. Further development of 6.2.1 Mount Hotham, Falls Creek and Mount Buller related non-winter activities. At Falls Creek, skifields or the expansion of non-winter alpine Mount Hotham and Falls Creek share a specific constraints include the need for activities requires careful management to number of common issues in relation to additional advanced and expert skiable safeguard both the Pygmy Possum and their future viability; both resorts operate at terrain, the lack of a through route to downstream water quality. a financial profit and have significant enhance non-winter touring possibilities. The investment proposals aimed at achieving relatively unlimited water supply for snow 6.2.2 Mount Baw Baw, Lake Mountain and higher levels of winter visitation. The key making at Falls Creek is a significant Mount Stirling future financial viability issues for these advantage. There are a number of similarities between resorts relate to uncertainties about the the smaller resorts of Lake Mountain, Mt ability to attract sufficient visitor Mount Buller is currently operating at a Stirling and Mount Baw Baw in terms of their numbers and yield including interstate financial profit and is in a strong financial future viability. These resorts all rely on and overseas visitors. position. Mount Buller is however, at a more external funding for their ongoing operation mature stage of development and as such, is and capital replacement programs. The The key opportunities relate to their relatively focussing on enhancing the quality of existing susceptibility of Lake Mountain and Mount low susceptibility to the effects of global facilities in order to increase visitor numbers Baw Baw to the effects of global climate climate change in the short to medium term. and yield. A current Mount Buller initiative is change in the short to medium term has the This fact combined with opportunities to focussed on providing for a permanent potential to further affect their future viability, provide more reliable snow cover through residential population in the resort. Mount as most of their revenues is generated snow making activities means that these Buller is more vulnerable to the effects of through winter visitation. resorts are well placed to maintain and global climate change than Mount Hotham or enhance winter visitation. Non-winter Falls Creek. Increased snow making activities Opportunities at Mount Stirling include visitation opportunities also exist for these to offset the effects of climate change would rationalisation of the cross country skiing trail resorts, although the benefits are likely to be require augmentation of the water supply. network, resulting in savings in maintenance greater at Falls Creek which has the Other environmental constraints include the costs and opportunities to provide better

30 06

linkages to Mount Buller. In terms of The imminent completion of the South Face environmental sustainability, rationalisation of road provides the opportunity of shorter some of the cross country trails may allow for travelling times from Gippsland and the improved environmental management within creation of a touring route, including Mount the resort. Potential conflicts between user Baw Baw. Constraints include vulnerability to groups to the resort would need to be climate change, the existing low standard carefully managed. Constraints at Mount access road which, if upgraded, would need Stirling include the low standard of road to address a range of environmental impacts. access which may be resolved as part of a There are two threatened flora communities long term requirement to upgrade road and two threatened fauna species within the access to Mount Buller. resort. These species include the Baw Baw Frog which requires protection of habitat from Opportunities at Lake Mountain include the threatening processes. existing good access to the resort, the potential to provide an undisturbed sub-alpine Greater emphasis on the development of the experience in close proximity to Melbourne. non-winter visitor market is critical to the long Constraints include the vulnerability of the term viability of these resorts. resort to climate change given its relatively low altitude and the need to ensure the protection of park values. Car parking capacity and road capacity on busy days is also a constraint to increasing winter visitation. The environmental sustainability of the resort is constrained by the presence of Key questions for further discussion two threatened species, including the Barred Galaxias which is particularly vulnerable. 1. Where should further investment in alpine resorts be encouraged? Mount Baw Baw opportunities include a 2. What can be done to improve the viability closer working partnership with the adjoining of the smaller resorts? Baw Baw National Park. Infrastructure at the 3. How should the resorts be managed to resort has been upgraded in recent years with make the most positive contribution to the reticulated power and gas from a gas fired Victorian economy? generating plant, sealing of the main access 4. Given the uncertainties associated with road and day visitor carpark and installation climate change and the likely growth in of village lighting. There is potential to further visitation, what will the resorts look like in upgrade ski lifting facilities and snow making. 2020?

31 THE NEXT STEP: THE ALPINE RESORTS 2020 STRATEGY

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7.1 THE ALPINE RESORTS 2020 STRATEGY A series of community forums is being Consultation and response to the Discussion arranged to coincide with the public comment Paper will inform the drafting of the Alpine period. At these community forums, the Resorts 2020 Strategy. The Strategy will Discussion Paper will be presented and an provide a sustainable framework within which opportunity provided for community views to planning at each resort can proceed taking be heard. into account longer term factors such as changing demographic and recreation trends, Written submissions on the Discussion Paper possible impacts of global climate change should be addressed to: and changing environmental and community expectations. Alpine Resorts 2020: Discussion Paper Resorts, Recreation and Tourism The key outcomes of the Strategy will be: Department of Natural Resources and • a clear commitment to ecologically Environment sustainable development; PO Box 500 • identification of the strategic directions for East Melbourne, Vic, 3002 alpine resorts in Victoria; • establishment of a framework within which Alternatively you can email comments to the detailed planning for each alpine resort, following address: including development and usage limits, can be undertaken; [email protected] • facilitation of planning for the potential impacts of climate change and provision of THE CLOSING DATE FOR SUBMISSIONS IS a sound environment for investment 31 JULY 2002 decisions; and • establishment of a clear framework for 7.3 THE 2020 WORKING GROUP Alpine Resort Management Boards to An Alpine Resorts 2020 Working Group will prepare and implement management be convened to review submissions on the plans and corporate business plans for Discussion Paper and guide the development each of the resorts. of the draft 2020 Strategy. The public will be invited to comment on the draft Stategy 7.2 SUBMISSIONS ON THE DISCUSSION PAPER before it is finalised. Submissions on the Discussion Paper are invited from anyone in the community with an Membership of the Working Group will be interest in Victoria’s alpine resorts. A number drawn from the broad range of stakeholders. of questions are posed throughout the Discussion Paper to prompt responses.

33 REFERENCES

Alpine Resorts Commission (ARC), 1996. IPCC, 1996. "Climate change 1995: National Institute of Economic and Industry "Environmental Policy Statement for the Contribution of Working Group 1 to the Research (NIEIR) and Read Sturgess and Management of Victoria’s Alpine Resorts". Second Assessment Report of the Associates, 1998. "Economic Consequences Intergovernmental Panel on Climate Change of a Climate Change Induced Reduction in Arup Environment and Planning Consultants, scientific assessment" ed by J.T. Houghton, Snow Cover in the Victorian Alps". Prepared 1997. "Mount Hotham Snow Making L.G. Meira Filho, B.A. Callander, N. Harris, A. for EPA (Victoria) and Environment Australia. Environmental Report and Management Plan". Kattenberg, and S.K. Varney. Cambridge Prepared for MHSC. University Press, Cambridge. NRE, 2000. "Victorian Greenhouse Strategy Discussion Paper". Centre for South Australian Economic IPCC, 2001. "Climate change 2001: The Studies, 1993. "The Economic Significance of Scientific Basis to the Third Assessment Pearman, 1999. "Progress in Climate Science Alpine Resorts". Report of the Intergovernmental Panel on and its role in Greenhouse policy". Paper Commonwealth of Australia, 1996. " The Climate Change scientific assessment" ed by presented to the Australian Institute of National Strategy for the Conservation of J.T. Houghton, B.A. Callander, and S.K. Engineers 1999 National Conference. Australia’s Biological Diversity". Varney. Cambridge University Press, Cambridge. Ski Industry of Victoria Working Party, 1980. CSIRO, 1999. "CSIRO Solutions for "Report of the Ski Industry of Victoria Working Greenhouse". Koenig U., 1998. "Tourism in a Warmer World Party". – Implications of Climate Change due to Department of Infrastructure (DOI), 2000. Enhanced Greenhouse Effect for the Ski Suppiah, R., Collins, D., & Della-Marta P., “Victoria in Future: the Victorian Industry in the Australian Alps". 2001. “Observed Changes in Australian Government’s Population Projections 1996- Climate”. CSIRO, Atmospheric Research & 2021”, Government of Victoria. Land Conservation Council (LCC), 1983. Bureau of Meteorology, National Climate "Final Recommendations – Alpine Area Centre. Department of Natural Resources and Special Investigation". Environment (NRE), 1997. "Victoria’s Whetton, P.H., Haylock, M.R., and Galloway, Biodiversity – Directions in Management". LCC, 1997. "Final Recommendations – Alpine R.W., 1996. "Climate Change and Snow Area". Cover Duration in the Australian Alps". IPCC, 1992. "Climate change 1992: the Climate Change 32: 447 – 479. supplementary report to the Ledley, T., E Sundquist, S Schwartz, D Hall, Intergovernmental Panel on Climate Change J Fellows and T Killeen, 1999. "Climate Yann Campbell Hoare Wheeler, 1996. scientific assessment" ed by J.T. Houghton, Change and Greenhouse Gases". EOS Vol 80, "Victorian Alpine Resorts Winter Visitor Survey B.A. Callander, and S.K. Varney. Working No 39: p453 1996". Prepared for ARC. Group 1, Cambridge University Press, Cambridge.

34 APPENDIX 1: WINTER VISITATION - INFLUENCES, OBSERVED TRENDS AND DAY VERSUS OVERNIGHT VISITS

INFLUENCES ON WINTER VISITATION resorts have limited or no snow making The strongest influence on visitation numbers capabilities. The larger resorts have more is variation in snow cover and associated natural snow cover and greater ability to factors such as the ability for artificial snow manufacture artificial snow. The figures for making at certain resorts. By way of example: visitation across all the resorts indicate that • the 1993 season had exceptionally poor resorts with snow making capability have snow cover and the lowest visitation in the been able to minimise the decline over the 20 year period; last few years of bad snow seasons, • the 1996 to 1999 seasons all had poor compared to resorts without snow making. snow cover and a corresponding decline in visitation; Snow cover is not the only factor influencing • the 1989 and 1990 seasons had good visitation. The 1990s have seen major snow cover and peak levels of visitation; investment in the ski fields, snow making and equipment, accommodation and • the 2000 season had significantly more infrastructure. Roads to and on the snow cover than in recent years with mountains have also improved, in some corresponding visitation. cases substantially. Without such investment, visitation in the 1990s may have been much Analysis of the period between the 1995 lower. season and 1999 season (a recognised poor snow season) indicates the following: OBSERVED VISITATION TRENDS • the three large resorts (Mount Hotham, To gain a better understanding of winter Falls Creek and Mount Buller) all visitation trends it is helpful to look at five- experienced decreases in visitation year averages to reduce the impact of between 1995 and 1999. The average extreme variations in snow cover from year to decrease was 15%; and year. The five year period prior to 2000 • the three smaller resorts (Mount Stirling, (1995 to 1999) has been used in the Mount Baw Baw and Lake Mountain) all analysis. This five year period has been experienced decreases in visitation which compared to the five year period with the were more significant than those of the highest visitation over the last twenty years large three resorts. The average decrease (1986 to 1990). The results are shown on was 48%. the following page.

The smaller resorts are at lower elevations and typically have less snow cover than the larger resorts. In addition, the three small

35 APPENDIX 1 (CONTINUED)

COMPARISON OF VISITATION DURING 1986 TO 1990 AND 1995 TO 1999 DAY VISITS AND OVERNIGHT VISITS The four resorts with on-mountain VISITOR DAYS 1986 TO 1990 95-'99 accommodation have all experienced an AND 1995 TO 1999 86-'90 increase in the proportion of visitors staying on the mountain from 1992 to 1998. Mount 2500 Baw Baw has experienced an increase each 2000 year with a total increase from 18% in 1992 to 46% in 1998. Similarly, increases in on- 1500 mountain stays from 1992 to 1998 at Mount Buller (35% to 49%), Falls Creek (60% to 1000 67%) and Mount Hotham (63% to 67%) are 500 strong. All have fluctuated in the intervening years from 1992 to 1998 making it difficult Visitors ('000s) Days 0 to identify reasons for this apparent trend. Hotham Falls Ck Buller Stirling Lake Mtn Baw Baw

Resorts However, while the proportion of visitors staying on mountain has increased, visitor days over the same period appear to be 95-'99 VISITORS 1986 TO 1990 decreasing (refer Figure 5.1). AND 1995 TO 1999 86-'90 1500 The growth in the four resorts has mainly occurred at the expense of day visitation 1200 which declined from 75% in 1992 to 51% in 900 1998. No figures are available for off- mountain and on-mountain overnight stays in 600 1999 but the average length of stay for all visitors increased on the 1998 figure. 300

Visitors Numbers ('000s) 0 Hotham Falls Ck Buller Stirling Lake Mtn Baw Baw

Resorts

The following conclusions can be drawn: • Over the last five year period, there has been a greater decrease in visitor numbers (22%) than, visitor days (7%) across all the resorts. • Mount Hotham and Mount Buller have been least affected by the overall decline in visitor numbers and visitor days. Mount Hotham experienced a 2% decrease in visitor numbers and a 16% increase in visitor days. Mount Buller experienced a 16% decrease in visitor numbers and a 2% decrease in visitor days. • Falls Creek experienced a more significant decline than the other two large resorts with a 30% decrease in visitor numbers and an 11% decrease in visitor days. • Mount Stirling experienced the most significant decline of 61% in terms of visitor numbers and 58% in terms of visitor days. The other two small resorts also experienced declines in the order of 22-26%.

36 APPENDIX 1 (CONTINUED)

WINTER VISITOR NUMBERS TO VICTORIAN ALPINE RESORTS (‘000S)

Year Mt Buller Falls Creek Mt Hotham Lake Mtn. Mt Baw Baw Mt Stirling Total 1980 233 155 74 87 38 N/A 587 1981 210 164 80 115 33 17 619 1982 150 126 68 70 28 N/A 442 1983 210 180 76 90 27 19 602 1984 214 162 70 110 45 23 624 1985 291 208 83 138 40 33 793 1986 309 209 81 145 40 23 807 1987 297 211 105 136 40 22 811 1988 122 233 118 62 4 15 554 1989 302 207 140 183 54 24 910 1990 340 178 118 200 39 24 899 1991 288 154 101 170 36 14 763 1992 308 156 106 151 36 17 774 1993 88 199 76 35 14 3 335 1994 210 149 109 124 30 10 632 1995 228 167 118 160 38 14 725 1996 262 161 123 81 21 10 658 1997 243 131 102 99 26 7 608 1998 207 134 95 95 45 5 586 1999 208 134 106 63 14 6 531 2000 331 181 140 123 44 9 828 2001 166 119 96 57 20 4 462

WINTER VISITOR DAYS AT VICTORIAN ALPINE RESORTS (’000S)

Year Mt Buller Falls Creek Mt Hotham Lake Mtn. Mt Baw Baw Mt Stirling Total 1985 393 361 206 133 59 33 1185 1986 438 375 196 145 59 25 1238 1987 427 380 225 135 57 22 1246 1988 239 397 237 62 15 15 965 1989 422 307 233 183 71 24 1240 1990 510 383 272 200 51 27 1443 1991 410 338 224 170 50 15 1207 1992 452 347 233 151 51 19 1253 1993 136 265 154 35 22 3 615 1994 317 326 219 124 41 11 1038 1995 401 376 287 160 54 17 1295 1996 411 364 302 81 31 10 1199 1997 429 305 256 99 36 7 1133 1998 369 294 241 95 57 5 1061 1999 372 292 260 63 22 8 1017 2000 578 371 348 123 57 10 1487 2001 324 276 274 57 26 5 962

(SOURCE: ARC 1985 - 1997, ARMB’S 1998 - 2001)

37 APPENDIX 2: PROFILE OF WINTER VISITORS

VISITOR ORIGIN would only increase interstate visitation by VISITOR OCCUPATION Recent ski tourism research (Victorian Alpine some 1.75% on the 1996 numbers. On this Most visitors across the resorts are in the Resorts Winter Visitor Surveys, 1995, 1996, basis while the airport is an important new professional / management category. One 1997 and 1998) indicated that overall, initiative in increasing the numbers of interesting issue is the relatively large visitation to the resorts by visitor origin was interstate and potentially international winter proportion of trades/labourer visitors to Mount reasonably consistent, with some 63% of visitors, the number of flights will need to Baw Baw, perhaps reflecting its role in visitation coming from Melbourne and 24% increase significantly for it to have more than providing skiing access to the industrial areas from country Victoria in 1996, 64% and 23% a marginal impact on total winter visitation. in the Latrobe Valley and the southeast in 1997 and 61% and 21% in 1998. The metropolitan area. remaining 13% - 16% were interstate visitors. Another interesting feature is the relatively high proportion of regional Victorian visitors to VISITOR AGE GROUPS / FAMILY STATUS There are very small numbers of international Mount Baw Baw and Mount Stirling. Given The largest groups of visitors to the resorts visitors, which are not normally picked up in their location, particularly Mount Baw Baw, in are the young singles, middle family and the visitor survey statistics. The recent the southern section of the Alps, they are mature family categories. Young couples and introduction of flights from Sydney and likely to provide snow access to a different young families with children under 6 comprise Melbourne to Mount Hotham will increase regional market. a lower proportion of visitors. this sector, with more emphasis on marketing to interstate visitors in NSW and Queensland VISITOR SKILL LEVELS Young couples without children tend to visit and overseas markets in Asia. The number of Skill levels vary across the resorts. Visitors to the larger resorts more, with lower flights and the current size of the planes used the major resorts include a higher proportion of representation at Lake Mountain, in however, are unlikely to generate a significant intermediate and advanced skiers and a lower particular, and Mount Baw Baw. Young increase in international visitors. proportion of beginners than at Mount Baw families are over represented at Mount Baw Baw and Lake Mountain which provide easy Baw. This, again, tends to support the The two northern most resorts of Mount introduction to alpine recreation. A significant contention that Mount Baw Baw is a family Hotham and Falls Creek attract a greater proportion of Lake Mountain’s visitors are snow resort and potentially an important nursery proportion of interstate visitors, largely from players. Mount Stirling on the other hand has resort for future generations of skiers. NSW and SA. Falls Creek in particular attracts a similar level of intermediate and advanced just over one third of its visitors from skiers as the major resorts, perhaps reflecting The age breakdown of skiers suggests the interstate. The introduction of air services to the limited opportunities for beginners. need to encourage more young new skiers Hotham Airport is an opportunity to increase and seek to convert a higher proportion of the number of interstate visitors. There were The data suggests more experienced skiers these into more regular skiers. The smaller approximately 100 flights scheduled during visit the alpine resorts more often and spend, and less expensive resorts appear to play a the 2000 snow season, with slightly more in aggregate, a larger amount of money. On role in providing opportunities for young than half of these originating from Sydney this basis, loyalty program initiatives, for families to introduce a new generation to with the remainder from Melbourne. Even if example the Mount Buller Club, which provide the snow. all the Sydney flights were totally full, they incentives for repeat visits, are useful.

38 APPENDIX 2

The statistics suggest, as may be expected, and September respectively. that active skiing declines with age. On this basis, consideration should be given to This leakage of Victorian skiers to external building a deeper appreciation of the resorts is compensated somewhat by the mountains with the middle age groups and relatively high proportion of visitation to the then encouraging a longer association of Victorian resorts from interstate. There is no older people with the alpine resorts through available data on the reasons for the leakage non-winter activities such as bush walking of Victorian skiers to external resorts, and education/interpretative experiences although anecdotal evidence suggests the related to the natural area. This approach need for variety, the challenge of more also argues for providing a mix of downhill difficult downhill ski runs and the affordability and nordic skiing to accommodate older of New Zealand resorts may be the key peoples interests. reasons.

VISITS BY VICTORIAN SKIERS TO INTERSTATE AND OVERSEAS RESORTS NSW and overseas alpine resorts attract winter visitation by Victorian skiers. This includes those who make repeat visits to a resort because of a preference over Victorian resorts and those who visit one or more other resorts for a change of experience or in conjunction with overseas travel.

No data is available on the extent of winter visitation by Victorians to NSW resorts. No global data on visitation to NZ resorts is available. A survey of accommodation in Queenstown NZ (March 1999 to March 2000) indicates substantial winter visitation by Australians. Queenstown provides the accommodation base for the Coronet Peak ski field. Guest nights by Australians ranged from 10,000 to 30,000 per month in the non-winter months. This increased to 38,500, 57,000 and 51,500 for July, August

39 PHOTOCREDITS

Mark Ashby 4, 6, 7, 8, 10, 15, 17

Mark Ashkanasy 2, 5, 21, 25, 29, 31

Andrew Barnes 2, 3, 5, 19, 23, 33

Falls Creek Cover, 2, 3, 5, 14, 23, 25, 27, 31, 33

La Trobe Picture Collection, State Library of Victoria 9, 11

Fredy Marcay 15

Lake Mountain 13, 17, 19, 29, 32

Mount Buller Cover, 3, 23, 25, 26, 27, 29

Mount Hotham Cover, 12, 20, 21, 25, 27, 33

Parks Victoria 13

SUBMISSIONS

Submissions on the Discussion Paper are invited from anyone in the community with an interest in Victoria’s alpine resorts. A number of questions are posed throughout the Discussion Paper to prompt responses. Submissions received will inform the development of the Alpine Resorts 2020 Strategy.

A series of community forums is being arranged to coincide with the public comment period.

At these community forums, the Discussion Paper will be presented and an opportunity provided for community views to be heard.

WRITTEN SUBMISSIONS ON THE DISCUSSION PAPER SHOULD BE ADDRESSED TO:

Alpine Resorts 2020: Discussion Paper Resorts, Recreation and Tourism Department of Natural Resources and Environment PO Box 500 East Melbourne, Vic, 3002

Alternatively you can email comments to the following address: [email protected]

THE CLOSING DATE FOR SUBMISSIONS IS 31 JULY 2002