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How will the Euro effect the ski industry globally?

post #1 of 14
Thread Starter 

Sigi Rumpfhuber, President of Kåstle Skis, talks with Skiing Business about how he thinks the Euro Crisis may effect the skiing industry.

Who Cares about Europe? 

 

A snip from the article: 

 

 

Quote:
“I don’t think that the crisis or the situation we’re in now will, more than in the past, affect how the prices will develop,” Rumpfhuber says.

 

post #2 of 14

Hmmm, hopefully the $ goes WAAAYYY up against the Euro for my Feb 23- March 10th trip to Lech  and Verbier.

post #3 of 14
Quote:
Originally Posted by snofun3 View Post

Hmmm, hopefully the $ goes WAAAYYY up against the Euro for my Feb 23- March 10th trip to Lech  and Verbier.

With regard to Verbier, Switzerland uses the Swiss Franc and the weak Euro has made Switzerland more expensive in comparison to the other places you to ski in Europe.  

post #4 of 14
Yeah, if Europe implodes, they don't buy stuff from China, who won't sell stuff to Americans who can't afford to buy stuff now,so China forecloses on California ...or something like that. hopmad.gif
post #5 of 14

I care about Europe.  A group of us have a deposit on two weeks at a lodge in Argentiere (down the road from Chamonix) that we've had to 'carry over' after a friend badly broke his leg before we could get over there a couple of winters back.  Every tick down in the Euro gives us extra 'spend power' for northern winter 2014.

 

The falling Euro acts as a shock absorber economically; makes Europe more desirable as a tourist destination; makes imports more expensive for the Euro bloc; makes Euro exports more affordable for everyone else.  The problem for Europe is the relative strength of Germany v's southern Europe and (probably) France.  If Germany left the Euro bloc the Euro would fall, the new Deutschmark would strengthen appreciably, currencies would find a new balance and economic activity would settle into the new norm.  Instead it looks as though they're going to grind their way, kicking and screaming, towards a United States of Europe.  To do that you need Euro-wide debt responsibility. 

 

Hereabouts we've seen some deals appear on lift tickets this season.  If the economic squeeze really comes on, as I suspect it might be in Europe right now, you could see something similar over there.  Mind you, the lift tickets in Europe are relative bargains compared with local resorts.

post #6 of 14

Sinbad that's only first impression... reality is different ;) Germany is basically first and loudest when it comes to this, that Greece, should stay in Euro zone. Not because they would love to pay their money to Greece, but simply because 80-90% of all this money, what we all in EU are paying to "rescue" Greece, actually stays in Germany and German banks. So basically we are not rescuing Greece, but supporting Germany. And therefore I don't really see any reason, why Germans should move out of Euro zone. It's working damn good for them, and a bit less good for everyone else.

post #7 of 14

If you are skiing in the Swiss alps, a continued and magnified European crisis, will only cause the CHF to appreciate vs. EUR and USD, despite the efforts of the Swiss National Bank to subdue the franc. Most forecasts (take with a grain of salt because they are usually wrong) have the euro around 1.2 by year end 2012 and 1.25 in 2013. So relative to last year, trips will be cheaper. 

The only other issue I foresee is if things get really bad (i.e. France blows up, along with Spain and the rest of the periphery), and austerity is the name of the game as a "fix", then there could be strikes galore likely affecting trains, planes, etc. - making travel into europe and from the airport difficult (i remember going to Greece last summer during the strikes and they had the airport basically shut down on various days).

post #8 of 14

Much of Europe, both people and governments, have lived way above their means for some time and will soon find themselves facing a poverty a level approaching post WW II. IMO the Euro currency may be gone in 2 or 3 years or greatly reduced in value. I'm a realist, but some may say pessimist.

 

Skiing and everything else is about to get very inexpensive in many parts of Europe.

post #9 of 14

much like how the failing American dollar/economy has already made skiing in the USA relatively cheap for Canadians. But positive currency conversions play a pretty small part in making choices for destination. Looking forward to inevitable Chinese destinations as they have the mountains and the economy now.

post #10 of 14
Quote:
Originally Posted by noncrazycanuck View Post

. But positive currency conversions play a pretty small part in making choices for destination.

 

Not for us.   Canada is off the table, yet again. 

 

 

 

Quote:
Originally Posted by Trekchick View Post

Sigi Rumpfhuber, President of Kåstle Skis, talks with Skiing Business about how he thinks the Euro Crisis may effect the skiing industry.

Who Cares about Europe? 

 

 

 

Not even remotely surprising.    Their banks are very much interested in keeping going concerns afloat.     It's new venture credit for small players that's going to be even more beastly to get.

post #11 of 14
Quote:
Originally Posted by cantunamunch View Post

 

Not for us.   Canada is off the table, yet again. 

 

 

 

 

 

 



at least for you it's not yet as bad as it was for us when our dollar was only worth 60 cents.

lots of bargains north of the border then... hope you were able to take advantage of it. 

post #12 of 14
Quote:
Originally Posted by primoz View Post

Sinbad that's only first impression... reality is different ;) Germany is basically first and loudest when it comes to this, that Greece, should stay in Euro zone. Not because they would love to pay their money to Greece, but simply because 80-90% of all this money, what we all in EU are paying to "rescue" Greece, actually stays in Germany and German banks. So basically we are not rescuing Greece, but supporting Germany. And therefore I don't really see any reason, why Germans should move out of Euro zone. It's working damn good for them, and a bit less good for everyone else.

 

Oh, I agree with that 100%.  Germany is far and away the most productive part of Europe.  The Euro experiment has been a massive boost to the German economy.  Southern European nations, who had lived with interest rates above 10% for generations, suddenly had access to 'cheap' money, and they went on a debt-fuelled spending spree that ultimately boosted the German economy.  Those countries are now technically insolvent, and much of the European financial support comes back to Germany by way of trade.  Sure.  But Germany is on the horns of a dilemma; prop up the peripheral countries financially (hundreds of billions, and likely into the trillions eventually) or they'll default and bring down the European banking sector (highly leveraged, and also technically insolvent in the absence of that financial support for peripheral Europe).  Germany (and the rest of Europe) can spend untold billions propping up Greece, Spain, Portugal, Italy and Ireland (and given time probably France and Belgium too) or spend untold billions recapitalising the banks.  There are simply no good choices left.

 

Still, with regard to the really important issue - skiing in Europe - I think this thread has captured things nicely.  It's likely to become increasingly affordable, although with risks around social stability (strikes, demonstrations and the odd riot or three).  Hopefully the ski resorts will be too busy doing business to bother, but getting there could become more tricky.  

 

It's certainly not dull over there at the moment.


Edited by sinbad7 - 7/20/12 at 10:32pm
post #13 of 14

I'm hoping the Euro tanks. Last time I went there a dinner cost a small fortune.

In the 80's it was up to 3 mark 40 to the dollar. Good days (if you were paid in dollars).

post #14 of 14

Germany is certainly healthy, but the rest of Europe is looking scary right now.  Hey, the EU closed West, LB.  It is not every day you see a 180 year old German bank close the doors for good.

 

The real scary mess is still in the Middle East.  The USA now has a HUGE military presence there to insure the Strait of Hormuz stays open.  The recent pressing issue is with the chemical weapons Assad has and where they will end up should his regime in Syria collapse (more likely when the regime is overthrown).  A strike by anyone to keep those weapons out of the hands of Hezbullah will likely throw a bunch of political risk into oil prices and pressure the European economies. 

 

The good news is that a large percentage of skiers can always afford to ski.  The bad news is that skier days continue to drop because those who aren't already rich aren't seeing economic gains.  Will the Euro effect the ski industry globally?  I don't think it matters that much anymore.  Consumers everywhere can always find quality substitutes for hard and soft ski goods produced in expensive countries. 

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