NZSki denies 'ripping off locals'

NZSki has defended the increase in cost of some of its early-bird season passes, citing "passionate investment" in the future of Queenstown, before "a very uncertain season" following the Christchurch earthquake.

However, the company was heckled for charging residents so much "80% of families can't go", by Queenstown business consultant Peter Lohmann.

NZSki chief executive James Coddington and managers gave a pre-season presentation to members of the Queenstown Chamber of Commerce, in the Crowne Plaza hotel, last night.

He acknowledged there had been "an awful lot of comment" about season pass price increases, since the announcement on February 14.

The Queenstown pass, for Coronet Peak and the Remarkables, will cost an adult $889, but cost $799 last year and $699 in 2009.

Mr Lohmann, a former chamber chief executive and Destination Queenstown board member, said it would be "fantastic" if early-bird season passes for residents cost $450 to $550.

"They would love you, they are completely on your side. Now they say they can't afford it... Think about all the workers and so on, they want to ski."

Mr Coddington denied NZSki was "ripping off locals", and said 1998 was the last time the season pass was $889, but for a 72-day season, compared to 135-days this season, "over a third more than any other ski area in this region."

He said ongoing investment, including the $35 million snow making system at Coronet Peak, allowed NZSki to open consistently in the first weekend of June.

NZSki's passes were "very good value" compared with $1250 for an early-bird pass and $109 for a day pass in Australia, he said.

Mr Coddington said the company faced a 30% increase on operational costs this year, including ACC levies, insurance, electricity for snow-making machines and diesel for heating.

"We have a $14 million labour bill, which has also increased.

We are a business and we would like to survive for future generations."

NZSki sales and marketing general manager Craig Douglas said the Canterbury-based business had extended the early-bird period until April 14 to give Cantabrians extra time.

Mr Douglas said he spoke with Australian travel industry representatives last week, with the aim of informing Australians the earthquake had not affected all of New Zealand and it was business as usual.

Mr Douglas said he had more confidence in selling skiing in New Zealand to the Australian market, but there was a lot of work to be done with Destination Queenstown, the Queenstown Airport Corporation, Air New Zealand and regional partners.

"We still think there's a pretty robust market out there, but we also carry a little conservatism, given the uncertainty of some of the impacts from Christchurch and just the general economic situation in Australia," he said.

Marketing general manager Graham Budd said DQ was spending about $1.5 million on Australian campaigns over the next 10 weeks, to recreate the demand which dropped after the earthquake while issues in Christchurch were addressed.

 

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