Intrawest CEO Says Ski Industry Recovery Could Take Longer Than Expected

mike lewis

• July 08 2009
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Intrawest CEO Bill Jensen

Call him a pessimist, a pragmatist, or perhaps a realist, but Intrawest CEO Bill Jensen believes that the tough economic times that hit the North American ski industry this year are not likely to lighten up until the 2011-12 season.

Despite the fact that the 2010 Winter Olympics are coming to his company’s Whistler Blackcomb resort next year, Jensen said yesterday at the Canadian Ski Council’s annual conference that the recovery won’t be V-shaped but more like a hockey stick.

According to the Canadian Press:

He said the industry has slashed prices and sacrificed revenue gains built up over the past couple of years.

In the December-January period, Jensen said the economy was bad, but that it didn’t really hit consumers until February-March of this year.

The result, he said, was a “noticeable fall off” in revenues.

“What happened in February-March is the norm now,” Jensen said at the Canadian Ski Council’s annual conference in Whistler.

“People just don’t want to open their wallet … . What we offer isn’t something people are required to have. It’s optional.”

The Canadian Ski Council released statistics Tuesday showing the number of skiers and snowboarders to hit Canadian slopes fell 10 per cent year-over-year to 18.4 million visitors, down from a record 20.5 million visitors in the 2007/08 season.

Jensen said some benefits of the 2010 Winter Olympics include improved infrastructure and the pride it brings local communities and athletes, but more money may not be one of them.

“There are a lot of positive things, but I don’t know if it will ever be measured in dollars,” Jensen said.

“The jury is out on whether we will experience … a longer-term sustained bump.”

Intrawest has been struggling financially since being bought in 2006 by New York-based private equity fund Fortress Investment Group LLC for US$2.8 billion in cash and debt.

Intrawest is not expected to unload jewels such as Whistler-Blackcomb, but there is some speculation it may consider financing some of its businesses independently, such as Mont Tremblant in Quebec.

Jensen would not comment Tuesday on potential sale talks or the state of the company’s debt position.