If you live in Canada, there’s a good chance that you’ve been skiing at one point or another. Ski resorts across the country have always been a go-to getaway for Canadians during the colder months. However, many Canadian ski resorts face increasing financial pressures as the climate crisis impacts businesses and raises insurance premiums. So, how are ski resorts coping? Let’s go ahead and get into it.
Canadian Ski Resorts Are Struggling With The Climate Crisis
A combination of warmer winters, less natural snow, and more frequent catastrophic weather events has made creating snow much more costly than it used to be. As a result, ski resorts, such as Ontario’s Highlands Nordic, are forced to adjust their snowmaking strategies. As a result, more expenses arise.
Increased insurance costs are one of the most significant financial burdens ski resorts face. Highlands Nordic states they have seen their insurance premiums double. This is because it maintains a relatively low-risk profile due to its focus on cross-country skiing. Highlands Nordic Resort manager Kelly Sinclair told The Logic that property insurance has been the main driver of the insurance increases. This is due to climate-related issues, such as wildfires and flooding, becomingwildfires and flooding growing more frequent and severe.
Brian Edwards, an insurance expert, states that “once-in-100-year events are happening much more often.” This is putting more pressure on property insurance premiums across Canada. The average ski resort will generally carry insurance to protect against liability claims, property damage, and other risks. However, in this day and age, climate change is adding a new layer of unpredictability and expense.
Snowmaking Costs Rising for Canadian Ski Resorts
With winters becoming warmer, Canadian ski resorts have been investing heavily in snowmaking to extend their operating seasons. Though critical, this has become a costly part of their business model. This is especially the case when it comes to smaller resorts. In the past, Highlands Nordic relied on natural snow to maintain 30km of trails. However, according to Sinclair, their budget now only makes snow for an 800m loop.
On the other hand, Canadian ski resorts, like Collingwood’s Blue Mountain and Quebec’s Mont Tremblant, are also struggling to fully open trails. This is the case even with both resorts significantly investing in snowmaking. For many resorts, the holiday period around Christmas represents 30% of annual revenue. This makes snow-dependent closures much more devastating!
Some Resorts Forced to Close for Entire Seasons
Daniel Scott, a professor at the University of Waterloo, highlighted the long-term financial strain of warming winters. From 2000 to 2020, the US ski industry lost over $5 billion in revenue due to shorter seasons. This trend is mirrored in Canada. Despite massive investments made in snowmaking, average season lengths are still declining. Paul Pinchbeck, CEO of the Canadian Ski Council, states there is “no doubt that some of the smaller Canadian ski resorts have had greater challenges.” Many northern resorts in Ontario and Quebec have been forced to close for entire seasons. Alternatively, they have begun operating with significantly reduced days.
Hope for Canadian Ski Resorts and Insurance Amid Challenges
Though financial pressures are mounting for Canadian ski resorts, many resorts remain hopeful. Mustang Powder Lodge, a cat-skiing resort in BC’s Monashee Mountains, benefits from deep snow and colder temperatures. This makes it resilient to warming trends. At the same time, many Ontario resorts are experiencing increased snowfall in certain areas this season, providing some relief for struggling businesses.
With climate change becoming an ongoing issue worldwide, it is uncertain in which direction ski resorts are heading. Remember, if you are looking for insurance for your business or personal needs, don’t hesitate to reach out to us at isure today!
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