Visitors experience skiing at the Wanda Changbai Mountain International Resort in Jilin Province.
“It was the best of times, it was the worst of times.” Charles Dickens’ famous line aptly describes the current state of China’s skiing industry.
Compared to skiing powerhouses in Europe, America, and some Asian countries, China’s skiing industry started relatively late. Over the past decade, it has expanded rapidly, but this swift growth has also exposed many growing pains. Statistics show that the total revenue of ski resorts across the country is still less than that of a single ski resort in Colorado, USA. Moreover, there are only about a dozen ski resorts that are well-operated and have established strong brands.
Why Isn’t Public Enthusiasm High?
Some ski resorts offer subpar services, causing many first-timers to give up before they can even enjoy the sport.
By late January this year, the Red Bull Nanshan Open had been held 11 times at Beijing Nanshan Ski Resort. Starting as a casual gathering among snow enthusiasts at the end of the ski season in 2003, Beijing Nanshan Ski Resort has, while organizing the competition, also gathered a group of snowboard enthusiasts, helping to promote its own brand.
Cultivating a skiing community was the first challenge faced by China’s skiing industry in its early days. Around the year 2000, skiing began to shift from being purely competitive to being promoted to the general public. At that time, China’s skiing population (defined as those who ski at least four times per season) was only a few hundred people. Skiing was often seen as either an “elite” or a “dangerous” activity.
After more than a decade of development, with the construction of numerous ski resorts, the country’s stable skiing population has reached over 20,000—an increase, to be sure. But honestly speaking, public participation in skiing remains low. In Beijing, for example, the number of people who ski accounts for only about 3%–5% of the resident population, whereas in some major Korean cities 10 years ago, that figure was already 60%.
Why is it so difficult to raise the proportion of China’s skiing population? Natural conditions are the primary factor. Yi Jiandong, Vice President of Jiangxi University of Finance and Economics and a sports research expert, said that in Northern Europe, Japan, and Korea, snow sports can be carried out in areas with thick snow and temperatures around minus 5 degrees Celsius. In contrast, skiing conditions in China are less than ideal. While the snow in the northeast is good, temperatures often drop to around minus 20 to 30 degrees Celsius. In places like Beijing, temperatures are relatively higher, but the snowfall doesn’t meet the required standards.
Guo Yunchuan, a veteran insider in the skiing industry, believes this is related to people’s consumption attitudes and economic conditions. “Ten years ago, skiing was still a novelty, and everyone wanted to give it a try. It was quite popular for a while. I had expected that after five or six years of market cultivation, the number of participants would rise steadily. But now, it seems that some people have lost interest.”
If first-time skiers don’t have a good experience, they can easily lose interest in the sport. Zheng Yanqiu, marketing manager of Beijing Nanshan Ski Resort, said: “Most skiers in China are first-timers and don’t have their own equipment. They need to rent gear, clothing, and other items from the ski resort. During weekends and holidays, when the number of visitors surges into the thousands, guests often feel exhausted after going through the procedures of registration, renting clothes, renting ski equipment, trying on ski boots and boards, etc. On top of that, some ski resorts have issues with slope planning, snow quality, facilities, and services. As a result, many first-timers haven’t even had the chance to enjoy skiing before they want to give up.”
Who Suffers from Ski Resort Price Wars?
Several ski resorts have gone bankrupt or switched businesses due to operational difficulties. The vicious competition within the industry is harmful to the entire market.
Currently, the “Ice and Snow Season” created by the National Stadium “Bird’s Nest” has entered its fourth year, representing a new exploration for the development of the skiing industry. Many parks in Beijing have also launched their own ice and snow projects, providing opportunities for people to experience winter sports up close.
“Most of these projects are still in the exploratory stage and are not yet mature. The products and services offered are relatively low-end compared to the skiing industry,” said Yi Jiandong. “However, these initiatives can help create an atmosphere for ice and snow sports within Beijing, giving those who have never skied or ice-skated a chance to get started. Given time, some of them may become part of the ice and snow sports community.”
In Guo Yunchuan’s view, polarization in skiing industry consumption has emerged. On one hand, there’s the high-end route, represented by Chongli in Hebei. A single skiing trip to Chongli can cost between 1,000 and 2,000 yuan, but this price is hard for the general public to accept. Most consumers opt for ski resorts around Beijing, which are considered low-end in the market.
Before 2006, most ski resorts had just started operations, with high initial costs and an undeveloped local customer base. Resorts began relying on price wars to attract visitors. The competition was most intense between 2005 and 2006, leading many resorts to operate at a loss despite high costs.
Playing the “low-price card” can yield quick results during the market startup and cultivation phase, but the negative impact on the industry itself is unpredictable. Around 2006, several ski resorts in Beijing, Shandong, Liaoning, and other regions began to go bankrupt or switch businesses due to operational difficulties.
Guo Yunchuan believes that under intense competitive pressure, ski resorts continuously invest resources, creating an arms race-like environment. Under such operational stress, some resorts choose to lower prices to attract customers and recover costs, ultimately leading to vicious competition within the industry. “Looking back, price wars have been harmful to the overall market. Service quality hasn’t improved, but the whole industry has suffered.”
Where Is the Industry Shakeout Heading?
For ski resorts to survive, they need to build a brand. In the future, developing ski resorts should focus more on quality rather than quantity.
China’s skiing industry has entered a phase of reshuffling. Factors such as brand influence, service level, and consumer attitudes have become key criteria.
Through regulation by authorities and natural selection in market competition, the surviving ski resorts have achieved a certain level of strength in both hardware facilities and soft services. The question of where to go next has become an important issue for major ski resorts.
At present, China’s skiing industry, in its transitional phase, urgently needs to establish basic industry norms and technical standards to eliminate backward enterprises.
“Whether a ski resort operates with the goal of short-term profit or aims to build a solid, career-oriented business requires judgment and choice,” said Guo Yunchuan. Moving forward, the skiing market will likely see a shakeout where “the big fish eat the small fish.” For ski resorts to survive, they need to establish brands and enhance competitiveness through high-quality, professional services.
Chongli County serves as a good example of forming a brand advantage during the transition. Premium slopes and professional services have become the brand hallmarks of “Chongli Skiing.” However, whether such a path—backed by heavy investment and natural advantages—can serve as a model for others remains debatable.
“In the future, developing ski resorts should focus more on quality rather than quantity,” said Guo Yunchuan. The environment of ski resorts should emphasize the creation of a cultural atmosphere. Ski resorts in some Asian countries, such as Japan and Korea, are striving to build their own cultural identities. In terms of both hardware and software, China still lags behind in this aspect.
Clearly, branding and specialization are the future directions for the development of ski resorts.
In fact, since 2011, China’s ski resorts have embarked on a new journey of exploration. An increasing number of tourism real estate developers and tourism operating companies have joined in the development and construction of ski resorts. The concept of ski resort projects has also shifted from being purely focused on skiing to becoming a comprehensive business model that includes tourism, vacationing, and real estate development.
China’s ski industry is growing rapidly, but there remains significant room for expansion. To cultivate the market and enhance their competitiveness, developers need to adopt a more balanced mindset and prepare for a long-term effort.