A warm, wet October and poor early snow have cost Mt Ruapehu's skifield operator millions of dollars and forced it to borrow money for crucial snowmaking equipment.
Ruapehu Alpine Lifts (RAL) said yesterday that it fell short of revenue forecasts by $2 million in its first year of operating both the
Whakapapa and Turoa skifields combined.
Skier day visits this season were down significantly on early projections, at 382,000.
"This is a little bit disappointing as before we were hit by a warm and wet October we were right on track to make our earlier projection of 420,000 ski days," said RAL financial manager Jennifer Manning.
The drop-off in revenue last month meant the total revenue forecast of $20 million was not met.
"We made about $18 million, and with expenses of around $17 million we are left with $1 million in profit compared to the $3 million we had hoped for."
She stressed that would not thwart plans to safeguard the fields.
"The financing of $2.5 million worth of snowmaking equipment for The Rock Garden at Whakapapa is obviously a lot harder but we'll have to go to the banks for extra money as we are committed to getting more snow on the ground."
- NZPA
