Infrastructure investment is essential to prevent ski lifts and other associated infrastructure becoming dated. However, investment is also important for resorts to remain competitive and continue to attract visitors. Not only are modern ski lifts quicker, hence more convenient for the people using them, but installing new lifts connects visitors to more ski areas, providing better accessibility and variety.

With the number of global skier visits reaching 350 million in 2017/18 for the first time since 2008/09, investment is important to attract more tourism to resorts and facilitate a rising number of visitors.

Ski lift operators have to make significant investment and, as a result, have a long-term interest in the success of each location as a tourist destination. New infrastructure can also have a positive impact on the property market, as new lifts and ski links can create additional demand and helps owners achieve higher returns.

To provide additional insight into investment and trends in the Swiss market, Jeremy Rollason, Head of Savills Ski, spoke with Jean-Marie Fournier, a majority shareholder of Nendaz-Veysonnaz Lifts (NVRM), which manages the ski areas of Nendaz and Veysonnaz.

Jean-Marie Fournier is a true Valaisan and inherited his considerable responsibilities from his late father, René Fournier, who was an entrepreneur and visionary. Legend goes that, in 1969 and goaded by two ski racers of the era, René was persuaded to illegally cut down 800 hectares of forest to make way for a new downhill ski run, high above the Rhone Valley. Despite a public outcry, the now infamous ‘Piste de l’Ours’ was created and has since hosted over 30 FIS World Cup stages.

Today, Jean-Marie does things a little more conventionally.

Jeremy Rollason What changes have you seen in the tourism market over the decades?

Jean-Marie Fournier I’ve lived in Valais my whole life. Valais has continued to evolve by improving infrastructure and other services in order to encourage tourism. With regard to Nendaz-Veysonnaz, we have a high-quality hotel and accommodation offering for our guests.

JR The accommodation and food and beverage offering is only half the story. The ski lift network forms a key component of the largest ski area in Switzerland. Can you describe the level of maintenance and investment it requires?

J-MF Nendaz-Veysonnaz, together with Verbier, makes up the Four Valleys ski area, which comprises 400km of slopes and 100 ski lift installations. Additionally, the Nendaz-Veysonnaz ski domain is completely snow-guaranteed thanks to a hyper-efficient mechanical snow cannon installation. When average temperatures reach -5C, we have the capacity to cover the whole area in just 75 hours.

JR Lift operators have to continually improve their lift installations, just to compete with rival resorts. What level of investment does this require?

J-MF Over the past two fiscal years, Nendaz-Veysonnaz has invested CHF 60m, entirely self-financed. Over the past 10 years, our investment has been CHF 95m.

JR Anyone who has skied in Switzerland since the de-peg from the Euro in 2015 knows it is no longer the cheapest Alpine destination. Is investment in infrastructure a way to counteract this?

J-MF From my point of view, the only approach to thwart this is to continue to maintain and improve our already high-quality product. On the other hand, decisions have been made that reduce the cost, ultimately making the Four Valleys accessible to all our customers.

JR Has the introduction of Lex Weber (legislation that has ended the construction of new second homes in Switzerland’s tourist areas) impacted mountain villages such as Veysonnaz and Nendaz?

J-MF It affects the wealth by up to CHF 5bn and the resources of our canton. You can imagine that I cannot accept that. However, while the vote brought a halt to the construction sector in the likes of Veysonnaz and Nendaz, it remains possible to realise housing in certain forms, provided that it is designated for tourism purposes. Nendaz and Veysonnaz still have opportunities, while respecting these new rules.

JR Is climate change a concern and are you putting in place environmental policies to help counter it?

J-MF We have seen a warming that is +0.5% over a few decades, which is hardly significant. We are, of course, aware of it, but do not share in the collective worry.

In summary, ski resorts rely not just on snowfall, but on the latest technology and infrastructure to attract existing and future audiences. Swiss ski resorts have had to deal with a number of challenging external factors during the last five to seven years, but with the levels of investment that continue to be made in many resorts, the future looks bright.

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