Money-Growing: Developers Conquering the Slopes

Experienced skiers and snowboarders view the slopes available outside Moscow rather as a training ground before setting out to the European highlands where the skiing infrastructure and prices are absolutely different. For example, vacationers are carried to the top of a mountain 2,000 to 3,000 meters high not on rope tows but in spacious gondolas with a capacity for up to 200 passengers.

In Russia, modern ski resorts are still scarce although the country has potential, market experts are convinced. But the sector is developing too slowly.

Moscow Region Watching Europe

The most developed winter sports centers in the Moscow Region are located north of the capital, on the best slopes to be found in the area. The popular ski resorts Volen, Yakhroma, Sorochany, Shukolovo, Stepanovo, Paramonovo and Skazka are opened daily, with ski lifts running till midnight or even later. In terms of the quality of skiing and service in general, those places do not fall far behind European standards, says Timur Degurko, a frequent visitor to those centers and a ski instructor with the Snowpro union of ski instructors.

Sorochany resort is situated near the village of Kurovo, Dmitrovsky District, 35 km away from the Moscow ring road (MKAD). The resort is run by the League of Cultural and Sport Workers. The development of the sports center was launched by the prominent skier, tennis player, musician and entrepreneur Leonid Sorochan at the age of 75, two years before his death in a tragic car accident.

Sorochany is not the cheapest skiing site. A 1-hour ski pass costs 180 rubles, a 3-hour card 300 rubles. To rent a pair of the best quality skis would cost 300 rubles per hour. Guests are requested to leave a deposit of 9,000-26,000 rubles for the rented equipment, or a driver’s license. A 1-hour training session with a ski instructor is 700 rubles on weekdays and 900 rubles on weekends. Sorochany has 10 large slopes, including longer, steeper pistes of up to 850 meters for experienced skiers and shorter routes for beginners.

Another countryside resort, Yakhroma, was developed and is operated by Konkor Group. “In the course of three years Konkor has spent $35 million on the park,” says Natalia Silinskaya, commercial director at Yakhroma. “The largest share of that amount was spent on the infrastructure.”

The project was designed by French architects. The 350-hectare Yakhroma is situated on the hills of the Klin-Dmitrov range, within 30 minutes’ drive from the capital. The park has 10 pistes, 230 to 600 meters long, floodlit for nighttime skiing and equipped with five ski lifts. Standard double rooms at country houses are available for rent at 5,940 rubles per day on weekdays and 8,580 rubles on weekends.

Most of the countryside resorts are open all year round, because investors and owners are interested in deriving permanent income from their operations, says Natalia Silinskaya. Some winters bring better profits as more skiers visit the slopes, others attract fewer guests. In winter months, the cost of maintaining a ski resort such as Yakhroma, Volen or Sorochany, stands at $250,000 per month on average. Takings are 3-4 times higher.

Volen ski resort has rooms available for several days. The facility is situated 46 km away from the Moscow outer ring road, on Dmitrovskoye Shosse. Accommodation facilities include a 60-room hotel with a restaurant, a sports goods shop, check rooms and a car park, as well as Finnish and Russian style cottages. Double rooms in a hotel or cottage are rented at 3,000-12,000 rubles.

The park offers 13 pistes for skiers and snowboarders, the longest measuring 450 meters. A ski pass for 10 trips costs 150 rubles on weekdays, 400 rubles on weekends. A pair of skis is available for rent at 350 rubles for 2 hours, 400 rubles for 3 hours, or 600 rubles for 5 hours. The deposit for hired equipment is 15,000-20,000 rubles. An individual training session costs 600 to 750 rubles.

A number of ski slopes are also available within the city limits. The most popular sites are Uzkoye hills at Yasenevo and the Kant sports club at the Nagornaya metro station. Other skiing facilities can be found on Sparrow Hills not far from the Moscow State University. There are also a number of smaller slopes built sporadically across the city, though details on their owners and operators are sparse.

One such facility is a slope near the Orekhovo metro station in southern Moscow. It offers several poorly serviced runs 150 to 200 meters long that only open on weekends and are equipped with Soviet-era ski lifts. A professional operator could transform the site into an excellent training ground. Experienced skiers and instructors believe that the monthly rent of the slope would not exceed 100,000 rubles.

Pouring Money Into Resorts

Development and maintenance of ski resorts is a rewarding business, says Sergei Prokofiev, general director of the company Krasnaya Polyana, which is developing the Karusel ski resort at Krasnaya Polyana. At the same time, it is highly complicated. With Russian law still plagued with numerous ambiguities, it is hard to calculate the cost of construction and provide for every eventuality.

Roman Nakashidze, public relations manager at UMACO Group, believes the stance of the local government towards the development of skiing sites in the given area to be of vital importance. Those projects are most often financed by major firms, for example, Interros or Gazprom. UMACO is currently building the Katerina Club holiday resort at Krasnaya Polyana. “We are building hotels for sale, but continue to run them,” Nakashidze explains. “With the money we earn we develop new projects. Such schemes are widely practiced.”

Natalia Silinskaya says that ski resorts derive their income partially from the public amenities and leisure facilities operating on their premises – cafes, hotels and clubs, as well as the ski runs proper. Public catering enterprises account for 25% of the total income, she says. The costs of equipping ski runs are high. A modern resort requires huge investment. According to Sergei Prokofiev, an expensive European-made ski lift pays back in 11-13 years. A chair lift may cost $2 million or more. 20% of that amount will be spent on electricity lines. The cost of a gondola-type lift is even higher – up to $7 million. More sophisticated lifts with a passenger capacity of 80 to 240 can cost up to $20 million.

2,000 Meters Above Sea Level

A number of new alpine ski centers are under development in Krasnya Polyana, Sergei Prokofiev reports. The Laura center belongs to Gazprom; Roza Hutor is a project launched by Interros. The group is set to spend $140 million on the development of the 429-hectare Roza Hutor resort in Krasnodar Region, Interfax reports. The site will be equipped with 15 ski lifts servicing a total of 55 kilometers of ski runs. The Alpika Service company has been operating a ski slope for decades.

“Our new complex Karusel is under construction on a 1,920-hectare site,” Prokofiev says. Karusel will feature 70 kilometers of ski runs. The company plans to spend 350 million euros on the project, expected to pay back after five years. The developers’ dream is to build a large gondola lift to the top of Mount Chyornaya Piramida (Black Pyramid) (2,375 meters) – the highest point of the Aibga ridge.

The development of winter resorts has good prospects in Krasnodar Region where mountains are only a 60-minute drive away from the warm sea. The Krasnodar government has adopted a plan for the development of winter sports facilities in Sochi till the year 2014, partially with a view to supporting its bid to host the Winter Olympics in the future. Tourism is the second largest source of income in the region, after agriculture.

At the Foot of Mount Elbrus

While the Sochi area may be viewed an economically successful zone of the skiing Caucasus, the Mount Elbrus Region is rather a desolate district despite the breathtaking scenery of slopes on Mounts Elbrus and Cheget and the Azau glacier. Looming 5,642 meters above sea level, Elbrus is the highest mountain in Europe. The area offers great sites for the development of world-class snow resorts that compete with Chamonix or Three Valleys in France. But, alas, no radical measures are being taken in that direction. There are companies and individuals who open privately-owned hotels and build new ski lifts, but they are still rare.

The experts name a number of reasons for that. Sergei Prokofiev blames political instability in Kabardino-Balkaria brought about by years of hostilities in the region. Natalia Silinskaya is convinced that everything hinges on the human factor – the region is still waiting for an investor to fall in love with those parts and be eager to develop the area. Others see the reason in the outlook of local residents, who, it is believed, do not see any future for the tourism industry. A person climbing up and sliding down the hill several times a day seems ridiculous to them.

The available ski lift links Azau (2,450 meters) to the Krugozor station (3,000m) and to the end station (3,500m). A chairlift and a T-bar bring skiers to a height of 4,000 meters, to the famous mountaineering hut Priyut 11, or Refuge 11, named in honor of the first explorers to arrive there in the early 20th century.

Accommodation is available in the town of Terskol at 100-300 rubles per night for a room rented out by individual landlords, at the Azau station, where rooms with shower and hot water supply are available, or at Vershina Hotel (1,000-2,000 rubles per night).

Most hotels and cafes in the area are run by local residents. One such entrepreneur is the ethnic Balkar Dima, the director of the local cable car link. He has built the Khizhina Hotel between Azau und Krugozor, at a distance from the crowded field. Khizhina is a European style hotel with a cozy drawing room and a fireplace. A week at that hotel cost 4,000 in the winter of 2004/2005.

Numerous cafes cater for skiers at Azau and other stations, offering cheap local cuisine at 100 rubles per course. Tourists from Germany, Italy and France often visit these places, although, of course, Russians make up the vast majority of visitors.

Highland Variety

The Urals, Caucasus, Altai and Kamchatka mountains are traditional winter sports sites. But Timur Degurko believes that Russia could have much more modern winter resorts than it has today. For example, the town of Kirovsk in Khibiny where the famous Aikuaivenchorr and Kukisvumchorr slopes are situated is not tourism-oriented at all. Kirovsk is an industrial town offering a limited choice of entertainment facilities. The slopes are serviced by Soviet-built ski lifts, with the oldest chairlift in this country, if not in the world.

The best-equipped ski resorts are in the Urals (Abzakovo-Bannoye, Zavyalikha) and in Kemerovo Region (Shereshesh) and Krasnaya Polyana, near Sochi.

Skiing in Russia is nearly as expensive as elsewhere in Europe, patrons of winter resorts admit. Of course, some European resorts are more expensive than others and a vacation there can cost 3,000 euros per week or more. But there are also medium-priced resorts where a 1-week stay costs a total 1,000 to 1,500 euros. A ski vacation at Krasnaya Polyana’s ski resorts requires spending approximately the same amount. Even in the Mt. Elbrus Region the total cost of a 1-week vacation is 20,000 rubles on average.

Russian skiers are frequent visitors at Courchevel, Val Thorens, Meribel and Chamonix in the French Alps, says Tatiana Tikhonenko, ski instructor at Snowpro. The Spanish Pyrenees are also popular. Cheaper skiing sites are available in Austria, Bulgaria, the Czech Republic and Turkey.

Veterans’ Tips

Zermatt in Switzerland is one of the highest mountain areas in Europe, with ski runs functioning all year round. The resort is not cheap. A week’s stay costs at least 1,000 euros, says Timur Degurko.

Maria Shagurina, managing partner at Modus media group is an avid snowboarder. She attaches significance to the quality of ski runs, comfortable lodging, fitness and spa facilities. A week at Bad Gastein, Austria, costs approximately 2,000 euros per person, she says. Renting a snowboard for five days would cost 100 euros, a ski pass is 40 euros for two hours. An even more expensive resort is Ischgl (5,000 euros per week).

Yekaterina Kutumova, regional marketing and public relations director at Colliers International, took up skiing three years ago. “A week’s trip to Bansko, Bulgaria,” she says, “costs $1,100 including the Aeroflot fare, a transfer and lodging at a 4-star hotel. The general impression is favorable, the quality of service is good, the ski runs are picturesque and well serviced. A 1-week ski pass is $150. A pair of skis costs $130 per week. A training session costs $35 to $45. Although, there are also some disadvantages such as a lack of leisure facilities.”

A week at Uludag, Turkey, may cost $900, incl. accommodation at a 5-star hotel, an air ticket of $300, a transfer to the hotel of $150, and a ski pass, Kutumova says. But the skiing equipment available locally is old and there are only two large slopes in the area. Not all of the ski lifts are available to the holders of the ski pass issued by their hotel and skiers have to pay extra should they wish to use the other lifts. A training session with an instructor is $50. The choice of apr?s ski facilities is even smaller than in Bulgaria.

Yelena Ziskind, public relations manger at Noble Gibbons/CB Richard Ellis is also a devout skier. Three Valleys, she says, comprises three large skiing areas – Courchevel, Val Thorens and Meribel. The price of an 11-day ski pass is 360 euros. A training session is 60 euros. Accommodation is available, for example, at 3-star hotels where a standard room would cost 200-400 euros. All hotels have ski storage rooms, saunas, swimming pools, parking facilities, etc. It is also possible to stay in apartments (with several bedrooms, a kitchen, a living room with a fireplace) available for 2,000-4,000 euros per week. The leisure facilities that are available include skating rinks, bowling alleys, bars, discos, go-carting, etc.

Decline of Mont Blanc

Alpine ski resorts so popular with Europeans stretch for hundreds of kilometers around Mont Blanc in the French Alps, the highest mountain in western Europe (4,807 meters above sea level), across several European countries – Slovenia, Austria, Switzerland, Italy and France. The total population of the Alpine region is 14 million, National Geographic reports. There are about 600 skiing sites in the area. In Switzerland alone, revenues from tourism make up $10 billion.

Most of the resorts were built at local villages and hamlets, and kept their names: Chamonix, Meribel, Tirol, St. Moritz, and others. But the rapid development in the sector has affected the magnificent landscapes and the ecosystem of the region. With the glaciers melting as a result of global warming, scientists expect as many as 50% of the current ski resorts to close down by 2050.