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Feature Articles: The Setting Journals
 
 
 
 

Volume 12 - Answers to Questions asked of a Resort - Part 2 of 2

DISCUSS THIS FEATURE HERE
6th October 2003

(Part 1 can be found here)

"Forum":

 

An organization, meeting, TV program etc. where people have a chance to publicly discuss an important subject; &

 

A large outdoor public place in ancient Rome used for business and discussion.

Before I get back into “the thick of things”, I decided to look up the definition of “Forum”, as I found the forum thread linked to the first part of this article very informative. To be clear, I took a few “hits” and that is okay as in most cases perhaps I deserved them. No doubt the forum linked to the text below will also provide more of the same, which will no doubt teach me something new. Thanks for contributing!

This article will pick up where the last one left off. Please refer to the first part of this article concerning the initials KT (Kouichi Tsukada), HM (Hiroshi Maruta) & BA (Blair Anderson).
   

Q12

Numbers for this season seem to be down again on last season? Why is that do you think?

BA: Snow resorts have a great deal of overhead to deal with, and a limited time each year to generate major revenue streams necessary to cover all the expenses (the white season at ARAI lasts on average 140 days). Furthermore, balance sheet items such as property tax rarely take into consideration seasonal aspects of a business.

Such stresses as those above lead to extreme competition for snow hounds, and resorts still in business during this “shake out period” are operating with a make or break mentality approach to each and every successive white season; In other words, quite a few of the resorts in Japan sacrifice quality to satisfy whatever pressures the market is currently exerting. Trick Parks have proven popular lately, and last season ARAI did not have one.

ARAI has so far avoided such short-termism, and it is not surprising that some market share has been snapped up by the competition. While ARAI is obviously keen to gain a bigger piece of the pie, the strategy for doing so has not changed significantly since opening for business ten years ago. More of a “relationship-marketing” approach has been adopted by ARAI. While the short-term results are in, the jury is still out on the long term ones.

As ARAI was completed in 2002, marketing placed a distant second to building the resort for far too long in my opinion.

  

Q13

How much importance does Arai put on the foreigners visiting the resort?

BA: ARAI did not place much emphasis on accommodating foreigners, or as I like to call them “International Guests” for the first several years of operations. However, in 1997 the resort began to host international events such as the ARAI Legend Ski Race and UCI World Cup Mountain Bike tour. In addition, there was also the ARAI Inter-Embassy ski competition that brought to the resort Tokyo-based diplomatic families for a weekend of fun and competition. Also, the owner of ARAI was in the past president of the Asian chapter of the YPO (Young Presidents’ Organization), so ARAI hosted several “family universities” at the resort. Finally, our international ski team, Morita Sports Promotion Foundation has also brought foreign coaches to the resort, and this led to the city of Arai forming a sister relationship with a similar sized city in the European country of Slovenia (ARAI and the city of Arai hosted many “Slovenian Festivals” and are continuing with this relationship presently).

Given the above, all aspects of visual identity for the resort (signs, menus, pamphlets etc.) were at a significant cost made bilingual. Unfortunately, few except the above “highly defined groups” knew about ARAI. Significant reasons for this included:

 

Until December of 2001, ARAI did not have an English HP and the Japanese HP was “ search engine unfriendly”;

 

Though aware of Snow Japan, ARAI did not pursue a relationship; &

 

ARAI was preoccupied with completing the resort so neglected some aspects of marketing.

In December of 2001, ARAI finally put an English web online and began advertising on Snow Japan. The effect was immediate and the resort was deluged with English telephone calls, e-mail etc. International guests began to visit - though at the time we were not really ready for them!

Fortunately though, ARAI had three good things going for it that carried us through that hectic first year:

 

The visual identity required by the International Community was already in place;

 

As the resort is 100% universal (true or suitable in every situation), International Guests had little trouble getting around; &

 

In the planning stages of ARAI, the owner brought together the best that Europe and North America had to offer. So in a way, though it was not the intention at the time, ARAI was in some ways designed for the International Community instead of the Japanese.

In essence, the International community found ARAI. In the process, ARAI discovered that unlike the Japanese, foreigners knew how to enjoy “resort life”. The Japanese visiting the resort continue to see foreigners enjoying themselves here, and in a desire to have fun, tend to try things that the International Guests are doing. This leads to a great atmosphere as it creates synergy, and shows a side to the resort that could not be seen if only one of the groups was present.

  

Q14

I presume numbers have visibly increased the last few years?

BA: Yes, they have. In a way it has followed a predictable pattern of most companies in this Internet age. Though new markets “found us”, we did not pay too much attention to them initially. However, they were attractive, dynamic and responsive to what we had to offer - to a degree much greater than the initial market that the resort was based on. Though the reasons why the initial English Web at ARAI came online are still unclear to me today, marketing online in English has created a “snowball” that is still rolling down the hill and becoming bigger and bigger two years on.

   

 Q15

How come the Early Bird offer is the price it is? It seems expensive for what it is.

For those of you that do not know about the early bird plan, a full account of it can be found at: http://www.snowjapan.com/e/features/chairman-26.html

HM: If the Early Bird were offered at a lower price, undoubtedly more Guests would jump at the opportunity. In essence, ARAI is doing what it can with what it has and we feel that any compromises in price would also have a similar effect on the experience.

There are several operational costs involved in the service as well. A Guide must get out of bed very early to make it to the mountain, check weather conditions, open up the ARAI GUIDE CENTER, liaise with Patrol members involved, confirm with the lift section that they can accept early guests, and make it to the rendezvous at the Guests Hotel for 7:15 AM. From there, the guest part of the service begins…

Q: Why do Guests shell out even more of their hard-earned cash to participate in the Early Bird as it stands presently?

A: To tap some virgin powder.

Maruta-san has a question for SJ forum readers:

Q: “If you signed up for the early bird and parted with your cash, how would you feel if upon reaching the peak multiple tracks had already been laid?

  

Q16

Can you give us any idea on running costs for, for example, a ski lift / a gondola / night skiing floodlights?

BA: It is incredibly expensive. ARAI has 1,020 hectares and is taxed on every last one of those. Financing obtained during the heights of the bubble economy to develop the land and build a first class resort continues to require regular significant payments only slightly offset by revenue streams that are constantly being interrupted. Fixed costs such as basic utilities, upkeep, human resources (required to a certain extent year round despite a limited season) also are significant.

I have heard that to offer one three or four hour evening of floodlit “nighta” costs approximately JPY 200,000 for fuel/electricity to run the lifts/lights. Such a figure I understand does not incorporate the costs involved in:

 

Marketing “Nighta” to the public

 

Getting the Guest onto/off the resort and hill (Access road costs/Heating of The Plaza/Utilities for The Village Station)

 

Human Resource related costs (Uniforms, Fees for part-time workers etc.)

  

Q17

Is floodlit “nighta” a profitable endeavor or not? (Whether that is in monetary terms or image or whatever)? It always seems so not busy but there are surely considerable costs attached?

HM: “Nighta” is not profitable, but it does provide an outlet for winter workers that may just be the true “hounds of the pow”. To find winter part time workers every year is challenging, and one of the “drawing cards” is to tell such applicants that we will offer them the “Nighta” service while they are employees at the resort.

In sum, if you look at the small picture, “Nighta” loses money; however, in the big picture, “Nighta” earns money for the resort by making it more attractive. In the long run, which is more important?

BA: Though the economics of this endeavor do not add up, the management of ARAI felt it was important to continue to offer the service. Having the lights lit at night also looks great from the village, where Guests can enjoy a drink in one of the lounges while watching the activity on the hill. Finally, the lights can be seen from 20 to 30 kilometers away on clear nights, so in a way it draws attention to the resort.

Upper management at ARAI, including the President and C.O.O., “volunteered” to staff the lifts at “Nighta” last year and will do so again this coming season. If you ever felt like talking directly with management at ARAI, “Nighta” provides a great venue for you to do so.


   

Q18

Is Arai as a resort interested in “cheapos” like me who don’t want to spend more than 3000 yen on a sleepover? If yes, how can you in the future look after our needs? If no, why not! We are the hounds after the pow!

BA: Yes. ARAI can best look after the needs of this segment by continuing to:

Provide you with up to date and relevant information in English via our website;

Offer part-time winter work to “ hounds after the pow”;

Sell reasonably priced food in our Bakery, Noodle Shop and Convenience Store;

Clear and light certain parking areas linked to clean western style toilets throughout the night;

Set aside sheltered, heated & cleaned areas during the day where you can nap/change;

Give you the opportunity to enjoy Japanese baths morning, noon or night; &

Explain further about nearby budget accommodation.

 

Q19

What was the thinking behind the resort changing the name recently to “ARAI Mountain & Spa”?

KT: The white season of 2002-’03 was both our 10th Anniversary of operations as well as our Grand Opening. By Grand Opening, I mean that though the ARAI Project is presently in it’s 18th year, it took us 17 years to make the initial vision that we had a reality. The timing was such that by the time we could see the vision with our own eyes, the global standard had become to include the word “Spa” in resort names. Given that ARAI finished phase 1 of the ARAI Project with the completion of Manna Esthetics Spa, the owner decided to rename the resort, ARAI MOUNTAIN & SPA.

  

Q20

Please tell us more about that incident 10 years ago when there was an avalanche with staff stuck under snow for 45 minutes (there was a documentary about it on TV the other week).

The incident above happened during research before the mountain opened to the public.

Though little was known at the time about Mt. Ohgenashi (the mountain on which ARAI is found), it was chosen for its uniqueness. One of the decisive factors for selecting this particular mountain was the fact that it didn’t have many bothersome trees, so you could basically ski anywhere you want.

After picking the mountain, staff performed three years of research on the snowfall, the temperatures, the wind speeds, and of course avalanches. It was during this research period that the avalanche occurred. While the TV Crew mentioned in the question spent two weeks at the resort, the final verdict concerning the exact reasoning behind the incident remains unclear.

The fallout was that ARAI realized it had to become even more proactive in terms of avalanche control. Among many such measures taken since then to ensure that nothing like it ever happens again, ARAI:

-

Held a conference of the world’s avalanche experts in nearby Nagaoka, not just for the benefit of ARAI but also for the benefit of all Japan. This country is still behind in terms of avalanche prevention;

-

Began to instigate avalanches. It is a common practice in Europe and the United States to instigate avalanches in the off hours before they can threaten the life of a boarder on the slopes. However, in many of Japan’s resorts, especially those who share land with national parks, it is illegal to use explosives for avalanche safety; &

-

Built some of the biggest, if not the biggest avalanche fences in the world.

   

Q21

Why should someone go to Arai rather than nearby Myoko or other regions?

BA: I will answer this question by instead going personal to talk a little bit about my family and I.

Parents - On both sides of my family are not big skiers these days. My parents have been to the resort once for my wedding reception in October of 1997, and enjoyed the reception in Forest Side House, which featured both the Micro-Brewed Beer and Italian style Pizza. My mother enjoyed dancing to the live house band and my father appreciated the clean and modern and western- style toilets.

Older Brother - Works as an English Teacher for a public junior high school in Hong Kong. He visited ARAI for the X’mas season in 2002, and really found the skiing itself to be a therapeutic way of clearing the big city blahs. He also appreciated coming off the mountain one day and having a Japanese style bath one evening and a Swedish-style massage by a registered Canadian Masseur in Manna Esthetics Spa the next.

Wife - Does not ski, but enjoys ARAI for the heated plaza (not worried about slipping during the winter). She enjoys introducing the Spa to her friends, and likes to visit the Aqua Park Pool & Yu followed by a meal in one of the restaurants. When our friends from Italy visit, she always likes to take them to the Italian restaurant.

Son - Is always asking to come to ARAI so that he can play in the Kids Playground. He also enjoys the pool and running around on the Heated Plaza. In summer, he likes to go to Itakura Family Park to see the animals.

Myself - I find ARAI to be a microcosm of many of the experiences in my life to date, as well as several places I have visited, including the Taj Mahal in India. Whenever I have time and am looking for a place to take family or friends, nothing in this area beats what ARAI has to offer in terms of quality of the facilities on offer or the staff for that matter. Whereas at neighboring resorts you’ll be lucky to even speak to a member of staff, ARAI staff really try to reach out and make Guests welcome.

In the end it is really up to the needs of each individual Guest. While ARAI seems to satisfy the needs of my family and I, nearby Myoko is a great place to ski too and has its own - but different attractions.


  

Q22

Why would a place with a name like "Tom's Sandwiches" have such Japanese style food?

BA: When I was growing up in Canada I loved going for Chinese Food with my friends; however, when I ate Chinese food overseas in Scotland or Australia, it was very different to Canadian style Chinese. My first experience with Chinese food in Japan was also a disappointment. Have you ever tried Chinese Food in India? It was pretty wild, but seemed to be popular among the locals. Would it be fair to say that the Chinese are very clever at taking their style of food and adapting it to local tastes, whatever those local tastes may be? If so, could such a case also be made for a Sandwich shop in Japan?

In the case of Tom’s Sandwich, it is a Delicatessen found in the Daikanyama area of Tokyo. The sandwich shop is presently going into a fourth successful year of a five-year relationship with ARAI. In fact, two of our staff were sent on a thirteen-day stint to the Tokyo shop - so that this winter they can produce freshly made sandwiches on request, Tom’s way.

Last season Tom’s Sandwich worked more closely with the neighboring Legend’s Cafe, which definitely features Japanese style fast food. Could this question possibly be the result of ordering a sandwich from Tom’s at the Legend’s Cafe counter? Regardless, while I can see how Tom’s could be viewed as serving Japanese style food if you compare it with a New York Deli for example, I’ve received many more compliments than complaints about the place over the past three years.
   

Q23

Last year Arai offered cheaper one-day lift tickets if I remember correctly - but not this last season. How have the numbers changed because of that, and was it a mistake to stop that special offer?

BA: In our opinion it was not a mistake to fade out the policy of cheaper one-day lift tickets during the weekdays, as the policy did not appear to have a significant impact on the numbers. Instead, we have been focusing on providing discounted lift tickets to our Hotel Guests. Such tickets are purchased on a day-to-day basis and are cheaper on the weekdays as opposed to the weekends.

I’d also like to take this opportunity to tell you something that ARAI is going to do this coming season with lift tickets for the very first time. Every Sunday from Mid-December through the end of the season in May of next year, ARAI is showing its appreciation to the next generation of skiers and boarders. While Kids under the age of six always ski free at ARAI, this offer will be extended to all elementary school aged children on Sundays throughout the season.


Well I trust that there is enough content above to get something going in the Forums? If two parts to this feature was in your opinion inadequate, please let the good folks at Snow Japan know. If we speak up, maybe a third and fourth part to this feature can be arranged? Next time, I intend to write amidst an environment on the verge of being dumped on in a big way. Until then, have a good one eh and I’m looking forward to hearing from you all again in the forums.  


If you do have any further questions or comments for the resort please email them to us at editor@snowjapan.com (with "Arai Q&A" in the subject line), and we will pass them on.  Thanks, SJ.  

   



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