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SAVILLS SKI REPORT Climate Change Resilient Resorts Property Price Index

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SPOTLIGHT 2018 SAVILLS SKI REPORT Climate change Resilient resorts Property price index FOREWORD Skiing in a warmer world The ski industry faces a challenging future, but is stimulating demand by embracing new technology and being environment-aware Climate change is affecting the winter sports industry, making conditions ‘outside the norm’ Summary increasingly the ‘norm’. From poor season starts to extreme weather conditions, skiers and snowboarders are Resilient resorts finding it harder to predict the best time to hit the slopes. High-altitude resorts Add to that an ageing population in the major source markets, and changes in the way leisure time is being such as Zermatt, Vail spent, and the outlook for ski resorts is challenging. and Saas-Fee, oer the greatest resilience against climate change. Interest in skiing from Demand shift emerging markets, such France attracts more as China, is rising fast ski visits than any other country. China has ambitions for 300 But the industry is fighting back. Unreliable ski seasons million skiers by 2030. are being countered by an increase in snowmaking, a technology that is advancing rapidly. Investments are being made to attract visitors year-round. A number of Infrastructure resorts are at the forefront of environmental campaigning. investment On the demand side, interest in skiing from key Resorts are investing emerging markets, such as China, is rising fast. In the heavily in infrastructure, west, meanwhile, new generations are discovering a ski broadening their oer experience tailored to them. With some 400 million annual ski visits worldwide, and adapting for the winter sport remains a major global industry. The ski future. resorts that serve it are home to some of the world’s most desirable residential property and established Market performance second home markets. In this report, we assess the challenges facing A wide range of buyers the industry, and identify the resorts that are best is active. Prices across placed to meet them in the years to come. the Alps have remained broadly flat, while North Paul Tostevin American resorts had Associate Director +44 (0)20 7016 3883 a strong year. [email protected] savills.com/research 3 Savills_Ski_02-03_Foreword_v0.2.indd 2 21/11/2017 11:25 Savills_Ski_02-03_Foreword_v0.2.indd 3 21/11/2017 11:26 RESILIENT RESORTS RESILIENT RESORTS Braving the elements Climate change is a ecting ski resorts across the world. Getting wise to the challenges and building resilience is key to the future success of the industry Skiing and winter sports are dependent on the which is an area three times the size of Texas. weather. The location of a resort, its altitude A sustained rise in temperature will put lower and average temperature all have an impact altitude resorts at greatest risk. Even if on the length of its season, and the reliability emissions are dramatically controlled today, and amount of snowfall it receives. some damage is done already. Peripheral Climate change has added uncertainty, resorts may fi nd themselves with ever shorter bringing warmer atmospheric conditions seasons and rapidly diminishing snow cover. and disrupting weather patterns. The northern Over the following pages, we look at the hemisphere, for example, has lost one million measures resorts are taking to adapt, and square miles of spring snowpack since 1970, where they feature in our resilience index. Val d’Allos, France 4 savills.com/research savills.com/research 5 Savills_Ski_04-09_resilience_v0.9.indd 4 21/11/2017 15:04 Savills_Ski_04-09_resilience_v0.9.indd 5 21/11/2017 15:04 RESILIENT RESORTS RESILIENT RESORTS Recent years: a mixed picture Responding to the challenge Increasingly, the only consistent thing about annual snowfall is its inconsistency From new snowmaking technology to diversifying activities and environmental awareness The Alps Shorter, more inconsistent ski Throughout the Alps, there has seasons have forced ski resorts and been below-average early season regions to adapt. The development snowfall for the last four years. of snowmaking technologies means In the run-up to the lucrative that snow-starved slopes can be Christmas season, higher topped up (assuming temperatures temperatures meant that snow are low enough), ensuring the fell as rain in low-altitude resorts. availability of skiing even when On the flip side, additional conditions are poor. Austrian resorts precipitation fell as bumper alone have invested €1 billion in amounts of snow in the highest snowmaking in the past decade. altitude, colder resorts. Val d’Isère, Resorts are doing their bit to Val Thorens and Ischgl all benefitted reduce their carbon footprint and from good early snowfall last season. their own contribution to climate Recent trends have started to change. Vail resorts, for example, change the dynamic of early season are actively managing their energy and Christmas skiing, with those usage, finding the most efficient looking for guaranteed snow ways to groom the slopes, and focusing on the highest resorts. installing solar power technology. Indoor snow slopes, traditionally found in locations without any kind of natural skiing, are now being Les Gets, France planned for ski resorts. Tignes, one of Europe’s highest resorts, plans to invest €62 million in a 400m-long indoor slope to enable skiing 365 days a year. Big ski resorts are diversifying “Californian resorts experienced exceptionally heavily into new activities. Water parks, spas, zip lines, golf and music good seasons, with Squaw Valley and Mammoth festivals help balance demand between skiers and non-skiers, seeing 158% and 174% of their usual snowfall” supporting more consistent operations throughout the year. Lobby groups are on the rise, too. Organisations such as Protect Our Mammoth North America Winters, set up by high-profile Mountain, US In contrast to the Alps, North winter-sports enthusiasts, aim to America has experienced good raise awareness of the impact of conditions in recent years, with climate change on the industry and 110% of normal snowfall recorded influence policy across party lines Zermatt, in the Pacific Northwest in 2016/17, at the highest level. Switzerland and 115% in the Northeast. Californian resorts experienced exceptionally good seasons, with Squaw Valley and Mammoth Most resilient resorts by country Based on the Savills ski conditions resilience index, overleaf seeing 158% and 174% of their usual snowfall respectively, allowing the latter to extend its season into August. While this means better skiing and longer seasons, exceptional volumes of snowfall make reaching the resorts more difficult, and bring a greater risk of avalanches. Switzerland US Italy Austria Canada France Zermatt Vail Breuil-Cervinia Obertauern Whistler Tignes Blackcomb Source Savills World Research 6 savills.com/research savills.com/research 7 Savills_Ski_04-09_resilience_v0.9.indd 6 21/11/2017 11:23 Savills_Ski_04-09_resilience_v1.0.indd 7 21/11/2017 15:45 RESILIENT RESORTS INDEX RESILIENT RESORTS INDEX Which resorts are most resilient? Introducing the metrics behind Savills ski conditions resilience index Reduced snowpack and shortened High-altitude, low-temperature high levels of reliable snowfall, seasons take an environmental resorts top the ranking. Zermatt, rank second and fourth. and economic toll on ski resorts. a north-facing, high-altitude resort With a 3,000m base, Chile’s Our ski conditions resilience with low average temperatures Valle Nevado is the highest-ranking index (below) ranks major global and a long season (thanks also southern hemisphere resort. ski resorts using five metrics to to glacier skiing) will ensure it The most reliable, high-altitude measure the quality and reliability remains resilient in the future. resorts are, by their nature, often of a resort’s conditions, and its Other resorts in the shadow of the the hardest to reach. For investors resilience against climate change. Matterhorn, such as Saas-Fee and in ski property, there is a balance The five metrics assess snowfall, Breuil-Cervinia also score highly. to be struck between accessibility reliability, season length, altitude US resorts Vail and Aspen, at from major transport nodes and and temperature. high altitude and benefitting from the reliability and quality of skiing. Obertauern, Austria Savills ski conditions resilience index The resorts best placed to maintain quality skiing 40 Key Snowfall: average annual snowfall, 2009-2016 Reliability: variation in snowfall 30 Season length: resort open days, 2017-18 season Altitude: mid-point between base and summit Temperature: average winter temperature 20 Index score 10 0 Åre Vail Lech Trysil Ischgl Flaine Villars Aspen Tignes Niseko Furano Gstaad Verbier Méribel Avoriaz Nendaz Megève Morzine Wengen Zermatt St Anton St Moritz Saalbach Heavenly Saas-Fee Grimentz Kitzbühel La Plagne La Plagne Las Leñas Vemdalen Chamonix Myrkdalen Champéry Val d’Isère Mayrhofen Andermatt Courchevel Zell am See Obertauern Flims (Laax) Valle Nevado Breuil-Cervinia Davos-Klosters Crans-Montana Mont Tremblant Garmisch-Classic Grindelwald (First) Grindelwald (First) Cortina D’Ampezzo Cortina Whistler Blackcomb Val Gardena-Gröden Source Savills World Research using OnTheSnow, Iglu Ski, national meteorological data 8 savills.com/research savills.com/research 9 Savills_Ski_04-09_resilience_v0.9.indd 8 21/11/2017 11:24 Savills_Ski_04-09_resilience_v0.10.indd 9 22/11/2017 12:52 THE WORLDWIDE SKI MARKET THE WORLDWIDE SKI MARKET Key V Number of ski resorts Total ski lifts Highest ski resort 1 Past Winter Olympic Games host and number of times hosted V Resilient resorts 1 How are resorts around the world investing to attract the next generation Total length of slopes New ski lifts, 2017/2018 Selected mountain ranges Future Winter Olympic Games host with established skiing of skiers? From new infrastructure and partnerships to investment to mitigate climate change, these are the world’s resilient resorts and ski regions Scandinavian Mountains 162 2,025km Climate resilience New Resorts in the colder 908 Canadian resort Scandinavian countries 5 Valemount Glacier will could be at an advantage Powder snow be a new year-round ski when it comes to global Galdhøpiggen Supercooled air from resort, home to the largest warming.
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    POWDERHOUNDS RATINGS - COMPARISON OF SKI RESORTS IN JAPAN, CANADA, USA, AUSTRIA, CHILE, ARGENTINA, NEW ZEALAND & INDIA JAPAN terrain Terrain restaurants oriented Beginner Beginner Intermediate on- Advanced Off-piste Backcountry Expert Terrain Extreme Tree skiing Powder Lunchtime Lifts Uncrowded park Terrain Family- Daytime Apres Nightlife Night Ski-in ski-out Cost Overall rating Powderhounds piste terrain piste restaurants terrain accom freshies Hokkaido Rusutsu 3.5 4.5 3 5 * 2.5 1 5 5 4.5 5 4.5 2.5 4 3.5 1.5 2 3.5 4 4 4.5 5 Kamui Links 3 3 2 3.5 4 2 0 4 5 4.5 2.5 4 2 3 2.5 0 0 0 0 5 3.5 4.5 Asahidake 0 1 1 4.5 5 3 2 4.5 5 5 2.5 4.5 0 0 2 0 1 1 0 5 3.5 5 Furano 3.5 4.5 3.5 2 3.5 3.5 0 2.5 4.5 3.5 4 4 2.5 4 3.5 1.5 2 3.5 2 4 4 4 Kiroro 4 3.5 2.5 4 4 3 1 5 5 5 5 4.5 2.5 4.5 3 2 1.5 3.5 3 4 4.5 5 Kitataisetsu 2 2 2 3.5 1.5 2 0 3.5 4 5 1 5 0 1 2.5 0 0 0 0 5 3 4 Chisenupuri 2 2 2 3 3 3 1 3.5 4.5 5 2 5 0 1.5 2 1 0.5 0.5 1 5 3 4.5 Moiwa 2 2.5 2.5 4 4.5 3 1.5 4.5 5 4.5 2.5 4.5 1 2.5 2.5 1 2 2 2 4 3.5 5 Niseko 4 4.5 3.5 4.5 5 3 1 4.5 5 3 3 2.5 4 4.5 5 4 5 5 3 3.5 5 4.5 Sapporo 2.5 2 1.5 3.5 4.5 2.5 1 3.5 4.5 4.5 3 2.5 2.5 3 3 1.5 0 0 0 4 3.5 4 Kokusai Sapporo Teine 4 2.5 3 4 4.5 4.5 4 4.5 4 4.5 3 3.5 2 3 2.5 1 0 0 0 4.5 4 4.5 Asari 2.5 3 2 3 3 2 0 3.5 4 5 2.5 4.5 2 4 4 2 1 1 0 5 3.5 4 Tomamu 4 4 3 3.5 4 3 0 4 4 4.5 3 4 4 4.5 2.5 0 1 3 4.5 3.5 4 4 Honshu Appi Kogen 4.5 3 3.5 3.5 3 2 1 4 4.5 4.5 4 3 3 4.5 4 2 2 4.5 5 3 4.5 4 Hakkoda 1 2 3 4 5 3 2 4.5 4.5 5 2.5 4 0 0 2.5 0 0 0 2 4.5 3.5 5 Happo One 3 4.5 4 1 1 3 0 1 3 1 2.5 3 * 4 3 1 3 3.5 3 3 3.5