Disposable income and the number of households earning $100,000 are expected to rise, which will entice regional and local guests to visit resorts more during peak season.
New York, NY (PRWEB) December 11, 2014
Rising disposable income and an increase in inbound international travel has benefited the Canadian Ski and Snowboard Resorts industry in the five years to 2014. The industry endured a dismal early half of the five-year period; however, revenue experienced strong growth in 2011, thanks to a rise in per capita disposable income and an increase in the number of households earning $100,000 or more. These increases provided consumers with more discretionary income, enabling them to spend more on recreational activities such as skiing and snowboarding. In the five years to 2014, industry revenue is expected to increase.
According to IBISWorld Industry Analyst Andrew Alvarez, “While regional and local guests comprise a substantial portion of industry revenue, operators rely heavily on international travellers to bolster profit margins, as they typically stay for longer periods of time and take advantage of a resort's full spectrum of amenities throughout their stay.” Though international travel has been mildly volatile over the five-year period, total inbound travel is expected to increase over the five-year period. This increase is expected to contribute to growing profit.
Over the five years to 2019, industry revenue is expected to continue growing slightly. Disposable income and the number of households earning $100,000 are expected to rise, which will entice regional and local guests to visit resorts more during peak season. However, says Alvarez, “A still-strong Canadian dollar, coupled with heightened competition in the global tourism industry, is expected to result in an overall decrease in the amount of inbound international travel over the period, siphoning would-be profitable international guests away from domestic operators.” Furthermore, the effects of global warming are expected to wreak havoc on certain industry establishments, creating anomalies in snowfall and potentially hurting revenue as a result. As a result, operators are expected to diversify their product offerings over the period and maximize revenue generated from regional and local consumers, while also investing in state-of-the-art snowmaking technology to maximize the length of the peak skiing season.
For more information, visit IBISWorld’s Ski and Snowboard Resorts in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments engaged in operating downhill, cross-country or similar skiing areas, or operating equipment, such as ski lifts and tows. These establishments often provide food and beverage services, equipment rental services and ski instruction services. Four-season resorts without accommodations are also included in this industry, but companies that own and do not operate ski resorts are excluded from the industry.
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