Struggling New Zealand Ski Resort Almost Purchased, Future Uncertain
Negotiations were underway for Whakapapa skifield at Mt. Ruapehu in New Zealand, home of New Zealand's longest gondola, and the only ski field in the North Island besides the club field in nearby Taranaki, "but unfortunately, the buyer of Ruapehu Alpine Lifts "has confirmed he has walked away from negotiations".
Check out some of the terrain at the New Zealand resort below.
Previously, New Zealand's Acting Prime Minister Carmel Sepuloni announced $5 million would be loaned to Ruapehu Alpine Lifts to keep the mountain open for the 2023 ski season, after the business was put into liquidation last week.
This was done so New Zealanders could still enjoy the resort, even as its financial state was shaky.
The funding issues could be due to travel restrictions, but at the end of the day, the problem, regardless of finger-pointing, needed a solution. The loan was to float the ski resort until a real buyer stepped in.
People's hopes were high, when this week, there was news of a potential buyer. Radio New Zealand even reported that "Tom Elworthy and his partners were the government's preferred bidder for assets of the Whakapapa skifield on Mount Ruapehu."
But Elworthy said the deal was not worth it and "no one would be willing to take on a business with more than $15 million of debt repayments and other risks."
The ski resort is in political turmoil as Sam Clarkson, of Ruapehu Skifield Stakeholders Association, was "furious" at the Ministry of Business, Innovation and Employment (MBIE) for refusing to engage with "the group's idea to run both slopes together as a not for profit, using crowd funding and having iwi on board, saying officials favoured private for-profit bids."
Solutions are being sought out. The Skifield association wanted to meet with Regional Development Minister Shane Jones and Māori Crown Relations Minister Tama Potaka, without MBIE officials, to discuss potential options.
If the debt of the resort is lowered and the terrain is still accessible, there is a possibility that Whakapapa will be a viable business moving forward.
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