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Home / Rotorua Daily Post

Ruapehu Alpine Lifts: ‘We are set to open’ - chief operating officer Travis Donoghue after $5m Govt loan

Raphael  Franks
By Raphael Franks
Multimedia Reporter·NZ Herald·
27 Jun, 2023 07:58 AM4 mins to read

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The two fields on Mt Ruapehu, Tūroa and Whakapapa, are set to open from July 1 if conditions and weather allow. Photo / File

The two fields on Mt Ruapehu, Tūroa and Whakapapa, are set to open from July 1 if conditions and weather allow. Photo / File

Embattled Ruapehu Alpine Lifts is thanking skiers for sticking with the liquidated company and employees who have had a summer of misery - promising to open its fields on Saturday.

It comes after the Government gave Ruapehu Alpine Lifts (RAL) a $5 million loan to ensure the ski season could go ahead, saving hundreds of jobs and preventing economic loss to the region.

RAL chief operating officer Travis Donoghue said “while it looks like part of [the misery] is set to carry on a bit longer yet, we’ll now be able to focus on what is right in front of us, hosting you for a great winter.”

“This is good news and should allow us all to remember why we are here - the love for this maunga,” he said.

The two fields on the mountain, Tūroa and Whakapapa, are set to open from July 1 if conditions and weather allow.

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Embattled Ruapehu Alpine Lifts is thanking skiers for sticking with the liquidated company and employees who have had a summer of misery - promising to open its fields this Saturday.  Photo / Rachel Canning
Embattled Ruapehu Alpine Lifts is thanking skiers for sticking with the liquidated company and employees who have had a summer of misery - promising to open its fields this Saturday. Photo / Rachel Canning

“We’ve not had that much snow yet but it’s looking like we will get some falling into and over opening weekend,” Donoghue said.

He said people could still use their life passes, and RAL was aiming to have day passes available from Thursday.

It was normal to gradually open lifts and terrain across July and into August, he said, but the plan this year was to operate more lifts at Tūroa.

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RAL went into voluntary administration last year, owing about $45m, after being impacted by poor seasonal conditions and pandemic closures over the past few years. A report earlier this month said that the debt had ballooned to $81.6m, $including 44m owed to about 15,000 people who hold ski passes.

“Thank you for sticking with us. An even bigger thanks to the team at RAL, for whom this summer has been a bit of a mystery and misery at times,” Donoghue said.

Regional Development Minister Kiri Allan announced the $5m funding for RAL’s liquidators yesterday.

“This will allow time for liquidators to decide on the purchaser or purchasers of the business and its assets,” Allan said in a statement.

“We’ve always been committed to finding a way to ensure the ski season on Mount Ruapehu goes ahead this year. Cabinet’s decision today has solidified that.”

Parties across Parliament, meanwhile, seem to agree the funding to keep the Ruapehu skifields operating over winter is not a great look, but needed to happen.

Regional Development Minister Kiri Allan announced the $5m funding to RAL’s liquidators yesterday. Photo / Mark Mitchell
Regional Development Minister Kiri Allan announced the $5m funding to RAL’s liquidators yesterday. Photo / Mark Mitchell

Ruapehu’s mayor applauded the Government’s support and said it was “a significant milestone in the ongoing efforts to secure the future of skiing” on the mountain.

Despite not mentioning the funds were a loan in the announcement by the Minister for Regional Development’s office, a spokesperson later clarified it was a loan from Kānoa’s Regional Strategic Priorities Fund.

It follows a meeting last week where major creditors, including the Government, ski pass owners and ANZ Bank, voted on options to salvage the commercial operations of the fields - but none of them gained enough support.

RAL was placed into liquidation the following morning, but the Government was still trying to find a way to allow the ski season to go ahead.

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RAL typically employs about 700 people in the winter.

“Ruapehu is a very significant part of the economy in the central North Island, accounting for around a tenth of regional GDP, or $100 million per year,” Allan said.

“The season going ahead will save hundreds of jobs and support local tourism, the regional economy and the community, while a long-term solution is found.”

There is also a new player expressing interest in taking over the ski operations on the mountain: Te Ariki Tā Tumu Te Heuheu on behalf of Tūwharetoa.

This is in addition to the expressions of interest received from Whakapapa Holdings and Pure Tūroa before last week’s meeting.

The Government is now considering the three bids for Government support, and the Ministry of Business Innovation and Employment will engage with the bidders.

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Raphael Franks is an Auckland-based reporter who covers breaking news. He joined the Herald as a Te Rito cadet in 2022.

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