Ruapehu Reopens After Government Bailout
Mt. Ruapehu's Whakapapa and Tūroa ski areas have reopened for the 2023 winter season, after receiving a bailout from the New Zealand government.
The government's Regional Economic Development and Investment Unit, Kānoa, provided a $30 million loan to Ruapehu Alpine Lifts (RAL), the company that operates the ski areas. The loan was used to cover RAL's debts and to make improvements to the ski areas. Regional Development Minister Kiri Allen described the importance of this loan, saying :“Ruapehu is a very significant part of the economy in the central North Island, accounting for around a tenth of regional GDP, or $100 million per year. The season going ahead will save hundreds of jobs and support local tourism, the regional economy and the community, while a long-term solution is found.”
RAL went into voluntary administration in October 2022 due to financial difficulties. The company had been struggling for several years due to a combination of factors, including poor weather conditions, changing consumer preferences, and the impact of Covid-19 on the tourism industry.
The reopening of the ski areas is a major boost for the local economy. The ski areas provide jobs for hundreds of people and attract thousands of tourists each year.
"We're thrilled to be able to reopen the ski areas for the 2023 season," said RAL CEO Jono Dean. "This is a great outcome for our staff, our customers, and the local community."
The ski areas are currently open for limited operations, but they are expected to be fully operational by the end of July.
"We're expecting a great winter season," said Dean. "We've had some good snowfall already, and we're confident that we'll have plenty of snow for skiers and snowboarders to enjoy."
The reopening of the Ruapehu ski areas is a welcome development for the New Zealand ski industry. The industry has been struggling in recent years due to the impact of Covid-19, but the reopening of the Ruapehu ski areas is a sign that the industry is starting to recover.
More financial information can be found here
