Have you ever wanted to own a ski resort? Just imagine: skiing the slopes, cuddling up by a fire, drinking a cup of hot chocolate and enjoying the sights and sounds of nature. Well, now you can for a buck and some change.
The small Austrian ski resort located in the southern province of Carinthia is on the market for one euro ($1.40) and the potential owner can also receive some government subsidies if the interested party decides to develop the property – subsidies are estimated to be approximately 1.4 million euros ($1.95 million).
The Petzenbahnen resort, which was worth millions of euros when it was first acquired years ago, comes with a snowboard park, a cross-country skiing and skating rink, ski school, hire shops and beginner slopes.
It is owned by the local council’s holding company, Carinthian Tourism Holding (KHT), which bought the Petzen resort for a hefty price-tag. Carinthian Social Democrat Governor Peter Kaiser concluded that it would cost a lot more to close and go bankrupt – five times as much – than to place it on the open market at a symbolic amount. The local and provincial governments hope the low cost will attract lucrative investors who hope to redevelop the vicinity.
In addition, the local council hopes to protect local employment opportunities and allow vacationing tourists to come in because they feel that it’s an important element to the local economy.
Of course, this isn’t the first time that such a resort has been placed on the market for an eye-catching price. In 2006, British Columbia’s Hemlock Valley was listed on eBay for $4 million. Glenshee and Glencoe, two Scottish ski centers, were for sale in 2004 after losing a substantial sum of money for two consecutive years.
In 2013, a French ski station was being advertised for sale on a small classifieds website for 550,000 euros ($767,415). The resort consisted of three lifts, an equipment hire shop, a creperie and a piste basher.
In the United States, the ski and snowboard resort industry is valued at approximately $3 billion and employs close to 80,000 people. Since 2008, a time when families had experienced diminishing disposable incomes and scaled back on extravagances, the market has contracted by half a percent.
The sector, however, is projected to receive a boost in demand as the economic recovery persists, but reports do warn that climate change might hurt operations – there are more than 300 businesses located across the country.
“Demand for the Ski and Snowboard Resorts industry remained slow in 2011, so companies will continue to engage in fierce price competition in order to bring in visitors, which will lower profit margins for ski resorts,” IBIS World stated in a report. “But in the following years, resorts will increasingly package their services in ways that are unique and where premium prices can be charged. In addition, as ski equipment becomes cheaper and more advanced, more consumers will opt to take up the sport.”
Let it snow.
