Browsing by Author "Michel, Felix"
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- When the snow stops : how climate change impacts alpine competitive advantage and innovationPublication . Michel, Felix; Rajsingh, PeterEvery year, over 130 million people go on ski vacations worldwide. Half of them visit the biggest skiing hotspot in the world – the Alps. However, climate change now poses a significant threat to prosperity and income there, as winters are becoming shorter, infrequent and less reliable. By the end of this century, 70% less snow is projected for altitudes below 1500 m. This thesis discusses how executives assess exogenous threats, particularly the risks from climate change, and provides action plans for high and low altitude resorts to remain profitable. A quantitative survey across potential tourists and eleven semi-structured interviews with industry experts and resort executives served as primary research to enrich current knowledge. Interviews revealed that when executives have high conviction about climate change, their product offering becomes more diversified making the resort more resilient to threats. Yet, destinations universally invest in snow production equipment. Alpine tourists, including current non-skiers, show ongoing interest in skiing activities, so this is an expedient investment. Nevertheless, climate change creates a disparate impact for ski resorts. Low altitude resorts will struggle to remain profitable as costs for technical snow production rise with every increase in temperature. Thus, they should maintain some ski alpine offerings at higher elevations and invest in novel markets with additional attractive activities for resorts at lower elevations. High altitude resorts will profit from climate change, as tourists will retreat to snow reliable resorts. Hence, these resorts should maintain sustainable competitive advantages by investing in snow reliability, accommodation capacities and infrastructure.