Ruapehu ski fields thrown potential lifeline as MBIE lines up new operators

Skiers on the Whakapapa skifield on Mt Ruapehu. Photo / Christine Cornege

Two private organisations are reportedly being lined up to take control of Mt Ruapehu’s two ski fields just months after Ruapehu Alpine Lifts (RAL) entered voluntary administration owing $45 million.

The Ministry of Business, Innovation, and Employment (MBIE) will make recommendations to Cabinet for one operator to get Tūroa, while the other will get Whakapapa, Newshub claimed tonight.

Four bidders were vying for the contracts, but according to Newshub, MBIE has chosen Pure Turoa, a company funded by developers Cam Robertson and Greg Hickman, to manage the Tūroa site.

Meanwhile, a private equity company with connections to South Island businessman Tom Elworthy and former RAL CEO Dave Mazey would likely acquire Whakapapa.

The two winning bidders declined to discuss their plans for the mountain with Newshub.

Locals claim former RAL head Mazey, who has connections to the second winning bidder, is a go-to guy who is familiar with the mountain.

Owners of businesses and those who depend on the tourists that the mountain attracts are ecstatic about the developments.

It was estimated at least 196 people were going to lose their jobs if the ski fields went under for good, which didn’t take into account the businesses that rely on mountain tourism bringing visitors to the surrounding towns.

“We will see management of a different style, an entrepreneurial take on it and a hometown take as well,” cafe owner Karl Christensen told Newshub.

“The upside to this having it split is they will open up healthy competition which will mean they will both be pushing for earlier opening dates and later closing dates,” TCB Ski, Board and Bike owner Ben Wiggins said.

In a statement, MBIE wouldn’t confirm whether it had chosen two parties to recommend to Cabinet.

“Four potential bidders for the RAL business have been identified and have submitted Expressions of Interest (EOI). The Government is to consider the options and will make a decision in due course,” a spokesperson said.

A spokeswoman for Regional Development Minister Kiri Allan said; “The process is not at the stage where Cabinet is required to make a decision.”

Since last year, the Government has invested $8 million in bridging money forRAL.

Last October, it was revealed RAL had gone into voluntary administration after three years of disastrous ski seasons due to the lack of snow and the Covid-19 pandemic.

The company owned and operated the Whakapapa and Tūroa ski areas.

A wet winter saw rain repeatedly wash away the snow last year, and the ski area’s 50 snowmaking machines proved no match against balmy temperatures. Climate change appears to be a significant factor after New Zealand experienced its warmest winter on record — for the third year in a row.

The disastrous 2022 snow season came after the previous two seasons were severely disrupted by Covid-19, leaving Tūroa and its sister ski area Whakapapa on the brink of bankruptcy.

MBIE provided additional funding to PwC to allow RAL to continue to trade until the start of the 2023 winter season and to provide time for a long-term plan to be formulated.