Winter sports are facing many challenges. Can they survive?

Declining Global Demand and Economic Shifts

• Winter sports participation in wealthy nations is declining, driven by younger generations preferring cheaper, warmer winter sun destinations.
• Over the last decade, the number of skiers at major global ski destinations has decreased.
• The industry faces a dual threat: a shrinking customer base in traditional markets and a warming climate threatening the viability of snow cover.
• Mountain communities in Europe, such as St. Moritz, remain heavily reliant on winter sports for local employment and economic stability.

Climate Impact and Snowpack Degradation

• Global average temperatures have risen by 1°C since pre-industrial times, but the Alps have warmed by 2°C, exceeding the global average.
• Long-term data from Davos indicates that snow seasons are starting later, ending earlier, and that snowpack depth has been thinning since the 1950s.
• Snow cover duration is decreasing, with natural snowfall declining even during years with above-average accumulation.
• Scientists project that if global temperatures rise by 2°C, approximately 15% of Eastern Alpine resorts may be forced to close.
• A 4°C temperature increase scenario could necessitate the closure of 60% of ski resorts due to insufficient natural snow and an inability to produce artificial snow.

Industry Adaptation and Risks

• Resorts are increasingly investing in artificial snowmaking infrastructure to extend ski seasons and compensate for lower elevations.
• Artificial snow production requires significant inputs of power and water, creating a resource-intensive dependency for lower-altitude venues.
• Increased reliance on snow cannons raises operational costs, which are being passed on to consumers, potentially making the sport more exclusive.
• A feedback loop exists where power-hungry snowmaking generates greenhouse gases, further accelerating the warming climate that melts the snow.

The Asian Pivot and Future Outlook

• The future growth of winter sports is increasingly concentrated in Asia, specifically South Korea and China.
• South Korea's Pyeongchang hosts the Winter Olympics, utilizing its 700-meter elevation and dry winter climate to produce high-quality artificial snow.
• China's ski market is expanding rapidly, with skier and snowboarder numbers growing by approximately 20% annually.
• Nearly 500 new ski resorts are planned for construction in China ahead of the 2022 Winter Games in Chongli.
• While historical landmarks like the Kulm Hotel in St. Moritz will likely survive due to high elevation, their long-term viability depends on continuous artificial snow investment.