Business, MBA, Personal, Thoughts

Skiing in the Pirinees (albeit the decreasing snow)

As you probably have guessed, this weekend I’ve been skiing in the Pirinees, in Andorra. The ski station, called Grandvalira, has an skiable domain of 193 km in 110 tracks and is the biggest in the Iberian peninsula.

That’s how it looks like in Google Maps:

andorra.jpg

And this is how it looks like from within:

grau1.jpg

Needles to say, I had a lot of fun. It’s my favourite station and I think I’ve skied (almost) all of it. The weekend was non-stop skiing, eating, going to a spa, reading and laughing.

But there’s also an scarcity reflection about all of this. It doesn’t snow as it used to be. The global warming has arrived.

Higher and higher investments are necessary to keep stations running. Artificially created snow is the only way to grant a smooth season where it used to be snowy not so long ago. That means increased tension on natural resources as water to make snow becomes more scarce, and higher energy expenditures. The balance is unsustainable on the long run.

And additional tensions arise because of the opportunity costs of those owners of land beside the station. On the French side (upper right) there’s an enlargement going on. It’s called Porte de Neige and will increase the skiable domain with 50 additional km, along with a new complex for tourists with several hotels, shops and all the necessary infrastructures.

It would simply be growth if it wasn’t in a previously unspoiled and wild place. Of course ecologists complained, but with no results. And the necessary question arises: should we be enlarging stations when the snow is becoming even more scarce? Shouldn’t we be focusing capital and investments somewhere else?

Let’s take a look around. This station is one of the lucky stations to still have a lot of snow. Others are not so lucky. In Cantabria, north of Spain, a new ski station was opened last year after a great deal of investment by the regional government. The snowing season was so terrible there that they still have to open after one year. Meanwhile somebody is paying all the expenses. You guessed it: the taxpayers.

Every community would like to have their own ski station. They attract tourism and generate business where none existed. That’s how they make their case for state subventions and those huge investments in infrastructure.

But in the end they always want the same: to build a huge amount of apartments and houses that will have to be paid in 30-year-mortgages. That’s of course if the banks decide to finance the final buyers. The real estate companies will try to sell everything as quickly as possible. After all, a season without snow is a rare occurrence, isn’t it?

Is it an efficient use of resources to build this kind of complexes with state subventions, using natural resources and to serve an excuse for building new houses in an already depressed state market?

Tell it to buyers in 30 years time when the global warming has further progressed and they have beautiful houses with no prairie.

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3 thoughts on “Skiing in the Pirinees (albeit the decreasing snow)

  1. Nice to see you managed to fit in some serious business analysis even on holiday! I think a lot of ski resorts would identify with the problems you mention – the last couple of years have been really bad for snow as far afield as Austria, France and the US. Global warning doesn’t seen to respect national borders. I’m gonna post another link to your blog at http://www.find-mba.com Who knows – maybe one day there’ll be an MBA in snow management or something similar.

  2. You’re right, we are managing for the short term and wishing for long term sustainability at the same time. And it’s not only about ski but about a lot of different issues. But reality is stubborn and, at some point, we’ll have to reconcile both views… somehow.

    Thank-you for the comment and congratulations for your useful resource. You already have a perm link here 🙂

    Best regards

  3. Trieste says:

    Lo bueno es que conozco un poco mas sobre ti, tus aficiones y valiosas apreciaciones sobre los diversos temas que afectan no solo a la economía del país y su política, sino también a un nivel mas generalizado e importante como los que hemos ocasionado para que el calentamiento global prosiga su curso.

    Lo bueno, vuelvo a decir, es que te imagino esquiando en Grandvalira y esbozo una sonrisa. Sí, ya ves, me rijo por sentimientos. Los busco continuamente leyendo este blog.
    Ahora te entiendo mejor. Lo necesitaba. Amas tu profesión tanto como la vida. Yo, sin embargo amo doblemente la vida y cada unas de las cosas sencillas que me rodean.

    Te encontré en las calles de India,… tú me hablabas de proyectos que mejorarían las comunicaciones del pais mientras te conducía a mi centro de trabajo, mi lucha diaria por producir una sonrisa entre los sufridos rostros de la infancia. Cada quien ayuda a su manera, se reconforta a si mismo, a su manera. Hay valores que no se asocian a la moneda, afortunadamente para personas como tú y como yo…

    😉

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