Skifields thrive on passion for product

One of the Ruapehu District's biggest businesses has 3000 shareholders, none of whom receive a share in the profits.
Ruapehu Alpine Lifts (RAL) may be unique in having shareholders who have agreed to invest any profits back into equipment, general manager Dave Mazey said.
It's a public company not listed on the stock exchange. It operates along commercial lines, but what lies behind that is the philosophy of a large club.
Mr Mazey, a skier himself, said most of the staff were skiers or snowboarders.
"It's a very unique and unusual dynamic. The customers are here to have fun, and we have very good employees with a passion for our product."
RAL runs both the Whakapapa and Turoa skifields, and owns $50 million worth of equipment. It brings about $100 million a year in extra income into the central North Island.
The company itself turns over $27 million to $28 million a year, with the rest of the visitor spending with other businesses on food, drink, accommodation and entertainment.
Running skifields is a complex business, with expensive equipment, and at Ruapehu, profitability depends on good weather and an inactive volcano.
Profits average $1 million to $1.5 million a year. When extra money is needed to upgrade equipment the company returns to its very first fundraising idea.
RAL began in 1953 when a group of keen skiers wanted better facilities at Whakapapa. One of them was the late Sir Bryan Todd, a prominent businessman and keen skier. The group bought a licence from the Tongariro National Park Board and raised the money to pay for facilities by issuing 10 shilling shares and 10 pound lifetime passes.
That tradition has continued to the present, Mr Mazey said, with the price for the lifetime passes steadily rising - from 50 pounds to, most recently, about $4500. That sounds like a lot - but apparently it isn't.
"The old fellows tell me that relative to their annual income they've got cheaper every year. That 50 pounds was six months' salary, one of them said, a big investment for a 23-year-old."
Some of the initial shareholders still ski the mountain on their lifetime passes.
Others have lost touch, or passed their share on to descendants. RAL still communicates with about 2500.
In the year 2000, RAL expanded. It was the successful tenderer to buy the Turoa skifield, which had gone into receivership. More life passes were sold and $20 million was raised to put new ski lifts, snow machines and a cafe at Turoa.
The company had a major setback in 2009, when an arsonist burned three buildings at Whakapapa. Replacing them with new and better buildings cost $14 million. Insurance paid $10 million and the company put in an extra $4 million to get better facilities. The latest addition to equipment was the SunKid Wonder Carpet, a 100m beginners' lift at Turoa.
Good snow didn't necessarily mean a good ski season, Mr Mazey said. Good weather was also needed in order for people to use it. The 2007-08 season was the best in recent years.
Turoa opened on June 28 this year, and Whakapapa on July 2. The school holidays had brought 3000 to 4000 skiers and snowboarders to each of the skifields on each fine day, "and that's good business".
The next thing on the wish list is an upgrade of ski lifts. Some were 30 to 40 years old, Mr Mazey said, and people expected better now.
The business has 750 to 800 staff working during the season. They generally spend their days off on the skiing or snowboarding.
The population of the Ruapehu District can nearly double during the ski season, from 13,569 to 22,579.
RAL NUMBERS
Assets worth $50 million.
Annual turnover $27 million to $28 million.
Annual profit $1.5 million to $1 million.
Skiing brings an extra $75 million to the Ruapehu and Taupo districts.
RAL CUSTOMERS
400,000 skiing days taken each year
Generally in two-three day visits
Visitors mainly from the North Island
About 8 per cent from Australia
RAL STAFF
750-800 staff during the ski season.
60-70 staff during the rest of the year.
About 45 per cent from overseas.
Remainder usually from North Island.