Economic sustainability and financial situation of the alpine ski resorts on the Catalan Pyrenees

Abstract

Purpose: The present work seeks analyze the profitability and the financial situation of the main Catalan alpine ski resorts, with the objective to check if these are sustainable from an economic point of view, taking into account the external factors that affect him.

Design/methodology: With the objective to carry out the study of profitability and financial situation, we obtained the financial states of the main Alpine ski resorts of the Catalan Pyrenees: Baqueira-Beret, Masella, Boí Taüll, Vallter 2000, La Molina, Vall de Núria and Espot Ski-Port Ainé, for the periods comprised between 2011-2015 and we proceeded to apply a series of economical and structural ratios with the purpose of establish a diagnostic on his situation.

Findings: The results show that the Baqueira-Beret and Masella resorts are the only that obtain profits, whereas the rest of resorts obtain losses in all the periods analyzed. With regard to the financial situation, the results reveal that the level of indebtedness of the resorts is, in general reduced, arriving to the conclusion that the majority of them are not sustainable from a strictly economic point of view.

Research limitations/implications: The main limitations of this work are on the one hand that the conclusions are obtained from a period of analysis of five years (2011-2015), and the second, they are circumscribed to a determinate region.

Practical implications: The results of this work can help to take decisions so much to the ski resorts managers as to the public administrators for implementing strategies to achieve diversify the offer and improve the results.

Social implications: Nowadays the majority of the ski resorts have been rescued or purchased by the Administration. We can deduce that it keeps by the incomes that generate his existence. That is to say, by the positive externalities that generates in the territory where they are situate.

Originality/value: The present research focuses in the financial study of a little studied sector as they are the ski resorts and the snow tourism with the enormous importance that has in the economy of the region and in the territorial development. The agents interested are so much the public administrations like the managers of this type of firms.