A $500 Million Bet on Reinvigorating Japan’s Aging Ski Industry

[David Chaus]

Here’s an interesting article I came across on Japan’s ski industry, with aging lifts and an older population, and touches on the need to attract tourists vs keeping things affordable for locals.

A $500 Million Bet on Reinvigorating Japan’s Aging Ski Industry — Bloomberg Businessweek

Taking a cue from Vail’s success, Hanazono resort in Niseko is spending big on modern lifts—and wants to raise ticket prices by 50% to pay for it.

apple.news

Here’s the original link from Bloomberg

A $500 Million Bet on Reinvigorating Japan’s Aging Ski Industry

Taking a cue from Vail’s success, Hanazono resort in Niseko is spending big on modern lifts—and wants to raise ticket prices by 50% to pay for it.

www.bloomberg.com

 

[RobSN]

"room rates of $1,200 per night" ... <checks Powerball ticket>

 

[scott43]

"room rates of $1,200 per night" ... <checks Powerball ticket>

You know, I feel like there are enough people who can afford this. I used to feel like I was well off but I clearly see I am not. And there are lot more than I thought that are. So you know it may work if they can make it a destination..

 

[crgildart]

And, I'm guessing a "room" is actually 1/4th of a ROOM.

 

[James]

Rather have old lifts.

 

[fatbob]

You know, I feel like there are enough people who can afford this. I used to feel like I was well off but I clearly see I am not. And there are lot more than I thought that are. So you know it may work if they can make it a destination..

Join the club when it comes to global skiing. Everyone has the ambition to make more $ by pricing out more people. Even Europe where day ticket prices are still reasonable more and more regular hotels are fitting out to 4/5 star/boutique redesigns.

 

[SkiSchoolPros]

Join the club when it comes to global skiing. Everyone has the ambition to make more $ by pricing out more people. Even Europe where day ticket prices are still reasonable more and more regular hotels are fitting out to 4/5 star/boutique redesigns.

Yes, If the rich continue to get richer (and less snow sure resorts close), expect skiing at top resorts to continue to get more expensive. This will be particularly true where there are government issued monopolies and little regard for the quality of life for locals.

 

[jimtransition]

Whilst I definitely don't want Niseko to turn into Vail, it is pretty great having new lifts and the Park Hyatt is genuinely very good. I fully respect Annupuri for trying to keep the costs low, but lots of the infrastructure here is insufficient for the level of demand. Old lifts are fine with small amounts of people, but when it's busy, we really need more and faster lifts.

If people want small resorts with clunky old lifts and a Japanese vibe there's about 400 of them to choose from, Niseko is kind of past that.

 

[François Pugh]

Whilst I definitely don't want Niseko to turn into Vail, it is pretty great having new lifts and the Park Hyatt is genuinely very good. I fully respect Annupuri for trying to keep the costs low, but lots of the infrastructure here is insufficient for the level of demand. Old lifts are fine with small amounts of people, but when it's busy, we really need more and faster lifts.

If people want small resorts with clunky old lifts and a Japanese vibe there's about 400 of them to choose from, Niseko is kind of past that.

We need slower lifts with less spacing between chairs; store the people on the lifts, not cluttering up the slopes. Moving GS or SG gates are fine, moving SL gates - not so much.

 

[Henry]

I've skied at both Hirafu and Hanazono resorts which are next to each other and connect at a couple of points on the mountain. Hirafu had old lifts with gondola cars so small that we couldn't get into every seat, they were too small and close together. The ski racks on the doors didn't hold all the skis and at least one pair (we picked the shortest) had to cram into the car with us. The only breakdown I saw was one of the really old single lifts on the top of the mountain evacuated on a sunny calm day. I can't speak to the need for additional hotels, but the lifts absolutely needed upgrading. (The Hanazono base lodge had a very good pizza.) The demographics of Japan are stark...too many old people and not enough of working age. I saw Aussies working as lifties, waiters, and retail clerks. Southeast Asians are brought in as guest workers on the farms. Immigration is extremely limited. Lots of Australian visitors, along with Americans, Koreans, and, pre-Covid, Chinese.

Niseko = the town and the region.
Mt. Yotei = the mountain
the resorts are: Annupuri, Niseko Village, Hirafu, and Hanazono which connect on Mt. Yotei
Niseko United ticket is good for skiing at all 4 resorts.

 

[James]

So, new lifts = nothing but $1,200/night lodging?

We’re supposed to think that’s great??
Throw us a bone!
Nope, it’s 16oz Kobe Beef steaks or nothing.

 

[jimtransition]

Niseko = the town and the region.
Mt. Yotei = the mountain
the resorts are: Annupuri, Niseko Village, Hirafu, and Hanazono which connect on Mt. Yotei
Niseko United ticket is good for skiing at all 4 resorts.

Hirafu and Hanazono are actually in Kutchan town district, Yotei is the massive volcano you see from Hirafu, not the ski hill, which is called Mt Annupuri.

 

[David Chaus]

So, new lifts = nothing but $1,200/night lodging?

We’re supposed to think that’s great??
Throw us a bone!
Nope, it’s 16oz Kobe Beef steaks or nothing.

If you had read the article, you would see that the $1,200/night lodging is the Park Hyatt at Hanazono, which also has modern lifts and other infrastructure, whereas the aging lifts are at the other three resorts at Niseko, which is apparently more typical of resorts throughout Japan.

The article didn’t indicate whether there were other lodging options at Hanazono that were more reasonable. I think most of the resorts where many of us ski on vacations also have $1200/night lodging.

 

[dan ross]

Join the club when it comes to global skiing. Everyone has the ambition to make more $ by pricing out more people. Even Europe where day ticket prices are still reasonable more and more regular hotels are fitting out to 4/5 star/boutique redesigns.

Some of the hotel issues are market driven- adapt/change or die. To get employees you need to pay at or near what the 4/5 star hotels are paying, assuming there is not a labor surplus . To pay that rate , you’ll likely need to charge more, to justify that charge and compete, you need to upgrade the rooms, lobby etc. If the traffic will bear it , it’s a no brainer
from the owners point of view. Capitalism, pure and simple. Good for the average skier , no , but I think destination resorts aren’t terribly interested in the “ average skier” and haven’t been for years.

 

[jimtransition]

If you had read the article, you would see that the $1,200/night lodging is the Park Hyatt at Hanazono, which also has modern lifts and other infrastructure, whereas the aging lifts are at the other three resorts at Niseko, which is apparently more typical of resorts throughout Japan.

The article didn’t indicate whether there were other lodging options at Hanazono that were more reasonable. I think most of the resorts where many of us ski on vacations also have $1200/night lodging.

There isn't any other hotel accomodation at Hanazono (there are some private houses). It's a bit unfair to group Hirafu in with Annupuri and Niseko Village as they have built more new lifts than Hano in the last 10 years.

 

[BMC]

Some of the hotel issues are market driven- adapt/change or die. To get employees you need to pay at or near what the 4/5 star hotels are paying, assuming there is not a labor surplus . To pay that rate , you’ll likely need to charge more, to justify that charge and compete, you need to upgrade the rooms, lobby etc. If the traffic will bear it , it’s a no brainer
from the owners point of view. Capitalism, pure and simple. Good for the average skier , no , but I think destination resorts aren’t terribly interested in the “ average skier” and haven’t been for years.

I’m a regular Niseko skier, and tend to start my day at Hanazono. The target market for Niseko has shifted from local Japanese and ski bum westerners and appears to now be largely Asian second home (apartment) owners, and the exceptionally rich generally. Certainly that appears to be the Hanazono market.

As others have mentioned, there’s no village at Hanazono. There’s just a great big hotel and associated hotel apartment complex. I’ve eaten and drank in the hotel and it’s fine. But you wouldn’t want to have a week long ski trip based there, let alone multiple weeks. The attraction such as it is appears to be the swankiness, such as it is.

In one sense having the beds booked out by rich Chinese who can’t ski is great for the balance of us in terms of on hill experience. But I can’t help but feel that Niseko is killing the off hill things that made it so nice in the first place. I used to love the old pension hotels in the lower pension village, for instance. There’s hardly any left. It used to be that little Izakaya Bars were started up by a couple of 24 year old ski bums, and had a unique Japanese charm. Now you need to be a millionaire to run one (and are owned by westerners). Such a shame. It’s turning into a place where the signature ski outfit is Prada, not a North Face.

 

[dan ross]

It’s a race to the top and bottom simultaneously. The top 5% is what everyone ,everywhere seems to be chasing . The “ upscaling” phenomena is everywhere. Vast amounts of Manhattan are unrecognizable from I when lived there in the 80’s. Some of that is just the normal cycles of development but a lot of it is conscious upscaling and commodification of everything. My brother lived on the North Island for almost 10 years and loved the uniqueness of skiing in Japan and traditional Japanese culture.

 

[Tin Pants]

lots of rich people from hong kong and singapore