What went wrong for Ruapehu skifield?

The slow decline of Ruapehu Alpine Lifts came to a head last week as creditors voted on the future of the company. But with so many different moving parts it can be hard to know what went wrong, and where it goes from here.
CORRECTION: In the final seconds of the video we refer to Ruapehu going under "for profit ownership" for the first time. There is some debate whether RAL is a “not for profit” and there has been private and “for profit” ownership involved in the operation of both ski areas for significant time since 1954 with Whakapapa and since 1978 with Turoa.
The Newsroom business team has been following this story since October last year, and will continue to keep a close eye on it as we look ahead to a possible sale.
For more updates on Ruapehu and the stories that matter visit: www.newsroom.co.nz
Note, that for the sake of clarity not all parties and creditors have been included in the video.

[@newsroomnz]

UPDATE: Since the release of this video, Tūwharetoa (one of the local iwi) has joined existing bidders Whakapapa Holdings and Pure Tūroa to buy the ski field. The government has also announced another 5 million dollar injection to allow the liquidators to keep running the company until a buyer is settled.

[@bartdeking]

Then at least we know where our tax money is going!

[@pnmanktelow]

Since the update the iwi carried out due diligence and decided the company was a basket case and want nothing more to do with it, further delaying any resolution, they stated to be viable the ski areas needed to be larger, which ironically has been blocked by the iwi and doc in the past 🤷‍♂️in the meantime we all just go to the South Island instead

[@lenphil9875]

New Zealand as a whole is pricing itself out of the tourist market. Accommodation, car hire etc. prices are driving tourists elsewhere. I used to come to NZ once or twice a year but those days are over. Rich persons playground now. Hopefully enough mega-rich to ride your waka.

[@SRM_NZ]

try living here......with an almost $23 p/h minimum wage, 7 years of a Labour government and covid....we are screwed.....The American federal minimum wage is $7.25 usd or $11.78 nzd

[@marksheehan8026]

Yes lve lived decades in wanaka , and recently cooperates have taken over the 2 main fields , made it very over the top PC, and so over priced passes that the Ave person is priced out of using the faculty let alone families.. basicly their targets are wealthy over seas people and potentially wealthy or elite people internally

[@user-uy6uc5ey5q]

@@SRM_NZ Really silly argument to bring in here. The hospitality sector haven't been paying minimum wage for a good long while, let alone the ski industry who have pay well above standard hospitality annual rates due the limited season and very long hours they expect workers to do. Those workers are making a quite a bit more $23 p hr. Your comparison to US federal wage laws is even dumber as the US States with ski-fields almost all have much higher minimum wage laws (States with ski slopes mostly are controlled by Dems) and have exactly the same issue as the NZ ski industry in needing to pay a lot more to workers to get them to work in the industry. If you think skiing is expensive in NZ wait till to visit a US ski field.

[@DarkroomDrifter]

Should be a lot less, all these kiwis keep coming to Australia to earn $30/$40 plus an hour because NZ is a poor country.

[@markphilpottinsidesport]

@@SRM_NZ and the US is doing well isn't it?. Don't us them as a benchmark.

[@ynotbegreat]

Removing the Waterfall chairlift was a major mistake IMO. That was the best run on the Whakapapa side. I stopped going there as I didn’t want to be forced to go down the Rock garden every time. I switched to Queenstown even though i have a life-pass!

[@paulmidd5523]

Yep waterfal quad laps were best.

[@johnrutter3985]

they did that? what a stupid move!

[@laksitha89]

ohh finally. A video with a good explanation. Thanks

[@woodmonster16]

Ruapehu had been broken for a long time. Non-for-profit just does not work in today's industry climate, end of story. As someone who is invloved in managing a SI ski field, the clear issue to me was the the business case for the 'Sky Waka' assumed tourist numbers based on similar Summer Operations overseas. In reality, summer operations overseas are hugely influenced by the emerging Mountain Bike Industry - Ruapehu has none of that. This whole story is serving to be a huge warning sign to the NZ Skiing Industry as a whole - if you start to fail, or your concession runs out (which a lot of fields are at the point of currently), then you are doomed to be at the mercy of DOC and Iwi. What hasn't been outlined in this piece is just how anti-ski area DOC management currently are, and just how much money Iwi want for little to no involvement in the running or stewardship of these mountains. The politics and greed is outstanding.

[@jackrubycrew]

This is a really nicely edited piece. Well done to the production team.

[@gaius_enceladus]

The "Sky Waka" was a ridiculous idea! "Champagne ideas on a beer budget" - that's what it comes down to. Looks like there was ZERO saving for a "rainy day" period like the Covid period gave them. Any business has just GOT to have that kind of "emergency fund" if it wants to be around in the long term.

[@danieljessop7140]

Covid was a giant mis-management by the government and should never have been an issue. The lockdowns were ridiculous and way over the top.

[@kiwiAdventure100]

I can't see the long term business case ever delivering an appropriate return on investment for shareholders. Shorter ski seasons, increasing operational costs and ticket prices that will be getting to a point where the cost will have (if not already) a negative impact on demand. Turoa suffers from unreliability of lift capacity due to icing being on a southern aspect. The govt should not be in the game of subsidising or investing in a entity that cannot pay it's own way. The one thing that would be interesting to look at would be the history of what RAL executives paid themselves while the business struggled. Poor leadership, inflated salaries, bad investment decisions. You can't blame COVID the underlying issues where there COVID just accelerated them being brought to ahead.

[@robertwaters2772]

It's not government job to be involved in skifields this shit government is forcing it's way into everything .governments job is health, Education, Law and order, Defense. And get the shit out of all other dum shit .

[@Siennasomerville]

Went here as a tourist 2022 ski season, the mountain felt like it was for more advanced snow goers. We went with a friend who was local, I spoke to a few people on the tee bars and they were pretty much all locals. No wonder it was a strange experience. Loved the views and adrenaline of it all though and good memories.

[@richardkaz2336]

Mountain biking during the summer month (s) ?

[@theolawson5314]

The only way to make the mountain commercially viable is to do earth works to smooth out key routs to allow operation with less snow and to accommodate bikes in summer. Iwi will never let that happen unfortunately.

[@markysgeeklab8783]

Either MTB or give up. There are 2 sensible options left... but DOC are involved, so just give up.

[@nicktobin8666]

Wrong terrain. And you can't disturb the rock. So no trail building.

[@markysgeeklab8783]

@nicktobin8666 There is no such thing as wrong terrain, just the wrong bike or not enough practice. You can protect the rock by importing material to build trails with... although no one "protects" the rock when it's a road for cars getting built.

[@user-uy6uc5ey5q]

@@markysgeeklab8783 Its a National Park, which has the highest level of environmental protection you can grant any land in NZ. Then on top its a World heritage site which the country has promised by international treaty to protect the both physical and cultural existing values of the place. The exiting ski-field infrastructure was all in place prior to major legal protections being put in place, the approval process and constructions of Skywaka despite it largely using old exisiting lift foundations was major undertaking to meet the various laws/regs and treaty requirements. You can't "import material like you propose into a National Park under any legal framework that operate within the park. It pretty obvious you got next to knowledge about the details involved.

[@amandagordon-ic1wb]

Last holiday here was terrible. Got dropped off half way up the mountain by a bus. Waited in a blizzard with young kids for 1.5 hours for another bus to take us to the top. Ski lifts were open, but complete white out. Very badly managed. Waste of money.

[@samt5663]

weather didn't have anything to do with your negative experience? Proper Planning and Preparation Prevents Piss Poor Performance

[@getahanddown]

@@samt5663 Not true. The poor planning was actually just bad planning by the new management. They tried to make more profit by taking over more varied operations which translates to unsafe busses being used to poach passengers from multiple small businesses. The Sky Waka was along the same lines. Bad calls made by cocky individuals who don't understand the area and industry. I have family involved there since way back, have worked on the mountain and have gone on to understand business at a larger scale. I met the then CEO with some cheap to impliment ideas and they only wanted poster projects for shareholders not real solutions that would at least sell some tickets.

[@mikejones-go8vz]

@@samt5663bloody weather, who ordered the snow? 😂

[@beancud9767]

Last year one day lift pass for Whakapapa was same as Cardrona. Need to be at least 20% cheaper. Than Sky Waka should never have been built. Better invested on more artificial snow makers and other infrastructure to maximize skiers/boarders.

[@SDOKELL]

Was supposed to ski there once, can't remember the year - snow was covered in ash. Must have been around 95. Been to all the other ski fields there since however :) Great place, great people.

[@kiwifruit5603]

Killed by tourism greed at whakapapa so non participants can be ferried up to a cafe and generally get in the way. Innocently taking out Turoa and its larger local community with it. Shame as the season pass was (and still is for 2023) super afordable compared to the south island commercial operators.

[@brycenew]

Great report; thank you! Interesting that club lodge’s would need to be removed if Whakapapa folds; in what way are the facilities/ structures linked (given they are separate entities). Feeling for all stakeholders, particularly locals who rely on the employment & business.

[@graemecotterill4166]

They all need to be removed as it's Maori land

[@kharndowdell9117]

Best thing to do would be split the ski fields bc turoa has ohakune which is a solid ski town and is way better then whakapapa

[@edw777]

really excellent season this year, really hope it helped

[@eyespy1415]

At the end of the day, if locals or families can't afford the prices charged, the mountain is only used by a minority. The sky waka is a flop, and should never have been placed on the mountain. The money should not have been borrowed in the first place. The mountain was not running at a profit that could see it ride out a couple of bad seasons.

[@Nic-og7qg]

Worked in ski rentals at Whakapapa back in 2000... the joint was having terrible seasons back then. It's sad but I'm not surprised the place is on the verge of collapse. Just doesn't get enough snow.

[@steventaumoepeau601]

Any updates on the new ownership? Bought the 4 day weekend pass and went to Turoa over the weekend. While facilities are not as good as Queenstown and Wanaka, it was nice to be back and appreciate more we really have a snow beautiful mountain in North Island

[@Froggability]

So predictable! An express chairlift like in Mt Hutt may have sufficed , instead of the mega million idea

[@SRM_NZ]

why hasn't there been an airport built in Ohakune?

[@user-uy6uc5ey5q]

Having lived in the area, Ohakune is about the worse place to build a large airport. The large tracks of flat land are either expensive due to being for housing in the township or very productive agricultural land (the large carrot at entrance of town is bit of hint the area is really good cold weather crop growing soil). Second that side of the mountain has very problematic weather conditions frequently, particularly during winter, creating conditions unsuitable to allow aircraft to land or take off. The current smaller airfield near National Park (closer to Whakapapa - which has been the bigger field by numbers) has had issues trying to establish a service for skiers in the past with above issues and there little evidence a large airport further round towards Turoa would solve any of them. Thirdly, as theres a perfectly good commercial airport at Taupo, so less than 1 hr from Whakapapa, so it would make far more economic sense to expand that to take larger planes than spend massive amounts on very expensive virgin site on the problematic weather side of Ruapehu. Lastly there isn't the economic resources within the region to support the development of new airport to even expand the scale of Taupo existing asset, let alone at a new site. The two previous attempts to get flights from Australia (aka like Queenstown which I presume is the model you're thinking of) in the North Island - Hamilton and Palmerston North both largely have failed and they had much large pop bases to fund and provide customers for the flights. Only Central Government has the resources to fund it. As the Skywaka disaster shows taking ideas from outside the Ruepehu district and thinking they can just work, shows how much of bad idea this would be, and frankly as the Central govt funds would be the only way to fund it, would be another "Think Big" white elephant.

[@linusf]

amazing video

[@johne6479]

Alot can happen in 10 days . .today they have a half meter to 1 m base

[@pnmanktelow]

Ruapehu also suffers from poor surrounding amenities, especially in national park which is very rundown and now the chateau is closed there really is nothing around for people wanting nice accommodation

[@Sanutep]

Yeah, it's not exactly setup as a ski resort kinda place at all.

[@markphilpottinsidesport]

Perhaps its time for some innovation in the business model. The Tarawera Ultra Marathon event has put the area on the global running map. Why not use the facilities to attract Ultra athletes and other runners from across the world to come and train on and around the mountain. Altitude is sufficient to get scientific benefits from training in that environment. What was a four month revenue generation opportunity all of a sudden turns into an 8 month opportunity. Places like Boulder and Flagstaff in the USA have benefit hugely from this approach. Athletes would stay for training blocks which is weeks, not weekends, bringing more money into the economy and community. (From a Kiwi Ultra Runner living in Mexico).

[@ytzpilot]

No one is going to invest money in a shrinking glacier

[@dillongreaves9452]

Should have kept it simple for the average person. It killed it for families. And Otago is way better for international travelers.

[@farhorizonz]

Actually for what you get its pretty cheap. Club fields with rope tows are $100 these days! U can get a turoa pass for $129

[@eyespy1415]

If it was $40 a day, people would spend the other 60 up on the mountain or in the villages surrounding the mountain..The high pricing stops many even contemplating heading to the hill. No people equals no money equals fail again.

[@farhorizonz]

@@eyespy1415 your dreaming. It was $40 in about 1990! Besides its packed most weekends mid season despite day pass prices. Problem was season passes were too cheap compared to the south island $500 vs 1200 down south

[@thenatural65]

1986-monster season.

[@nelsonestrabola3014]

There is no reason for paying for skiing there you can do it for free in many spots of mt ruapehu

[@nebsun]

Would rather just have a basic ski lift, what was the purpose of the "Sky Waka" ? who was it intended for ? I'd rather just get a lift up to the top, and walk around from there - no need for an expensive closed glass fancy lift.. also takes away from the natural beauty of the place, and making it even more "touristy" is a put off

[@khg8519]

Make the car parks bigger remove everything that is not a ski lift or required equipment cut all the extra costs - ( SKI FIELD FOR SKIING ) You guy had all the fancy stuff the rich guys could afford to pay for the mountains cost the majority of people who could afford to go wont because of the hassle involved then the lack of snow - you could just run the place like a luxury resort keep all us poor people out we smell leave rubbish everywhere we go. Im happy they gave me a refund I think they have covered their bills leaving none out ???

[@user-uy6uc5ey5q]

As the Ski fields are in a National Park there zero chance you can expand the car parks. The regardless of which govt is in power, the way the conservation estate law and regulations work it just isn't possible to treat either field like they are a commercial land site in a major city. I take you aren't a regular skier/boarder to any degree. The hobby just has got more expensive, the skis, board, boots are much more expensive than they're 30 years ago (which was when you knowledge of the sport is up to?) as the technology involved has increased by several magnitudes. Just basic set of boots, ski, clothing is $1500, plus the expectations of domestic skiiers/boarders for service why on the mountain is longer at the 'taking you own packed lunch" level. Not sure what the second half of your comment means as the poor grammar stops any logical point to be made out. Everywhere I've skied round the world including in the areas in Europe where sport developed 200 years ago have seen the "resort" development happen to skifeilds. Even the fields like Rainbow in Nelson Lakes which essentially moved from a semi-commercial model to full voluntary club structure end up closing. They weren't saved by the "majority of people" of the country arriving to save that field.

[@davidmcfaull3162]

As of Saturday 8th July, the mountain is being skied.

[@peterswatton7400]

Lots of ski fields in Europe have folded due to lack of snow.

[@04SURE]

Tuwharetoa Mana na ratou te mana whakahaere

[@donnam1832]

So another covid casualty

[@kharndowdell9117]

Nah not at all it’s RAL they don’t know how to run a business

[@puhigeoffreywaynefuimaonok8656]

considering the land was seized by the Pocol Vohl Act in 1834 from its owners Waitaha Nui or Tataitanga our many indigenous original names in, 1953. The tangata whenua you quote are the Pakeha Kawana friendlies named so as the pakeha could pretend they were talking to iwi when in fact they are not and whaaarkn will not, talk to Waitaha Nui. Pakeha have done it all to control the narrative yeah we know well we want it back and for kawana to ef off and DOC yeah push off.

[@user-uy6uc5ey5q]

Sorry what? How can an "act" (and I might add you when google "Pocol Vohl Act - nothing comes up) be used to do anything during at time when NZ wasn't a British colony nor have any western legal system.

[@puhigeoffreywaynefuimaonok8656]

@@user-uy6uc5ey5q the papal bull terra nullius 1095? The term comes from the Papal Bull Terra Nullius issued by Pope Urban II in 1095 This decree allowed Europeans to “discover” or seize or claim any land occupied by non-christian people in any part of the world (Google search).

[@honahwikeepa2115]

Matua te Mana is the proper name used by the ancient Ruatipua Whakapapa that pre-dates the 13 th century Waka people by several centuries. These people still reside on Okahukura. I'm one of them.

[@147hobson]

Who cares.

[@TheMntnG]

its too expensive! needs to be nationalised

[@t803586]

explain how that would work please?

[@farhorizonz]

actually too cheap

[@TheMntnG]

@@t803586 how do schools work? the government/council/state owns the school premises and building or leases/rents it, employs the employees and sets the prices for the service. pretty simple.

[@t803586]

@TheMntnG so your saying the government should be running g a ski field? Have you seen the state of the school system. Do you want the staff to go on strike all the time ⏲️

[@TheMntnG]

@@t803586 strikes have nothing to do with public or private ownership, but salary. anyway, the state doesnt have to run it, but own it and make the prices. or are you saying we’re better off not letting the state run the schools?

[@noelrossbridge2514]

It cost $25 million to build yet "land holders" quote $50 million to remove? Yeap, that's what I thought. Cheers my Kiwi brothers, now I know how a "voice" makes a difference.

[@user-uy6uc5ey5q]

Itsa National Park and world heritage area, the high cost for removal is due they have to return to near natural state by Law and international treaty. This isn't a demolition of an commercial site which it can have lots ground left rough for a new rebuild. The costs for rehabilitation for the large area and replanting of natural vegetation is order of magnitudes more than the bog standard normal site clear your thinking of.

[@noelrossbridge2514]

@@user-uy6uc5ey5q Blah, blah, blah... $25 million includes the cost of entire lift + installation. You're a thief with a big mouth that ain't makin sense. How does it cost twice what its worth to remove it and plant some trees? Nah, ya fullashit.