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So I guess there's no one out there who really knows the answer to my question about whether these resorts are profitable or not, and if not, how it is that they don't close down.

 

I am assuming that we don't see an urgent push towards commercial re-invention because the resorts don't feel a need for urgency, and that if things really were dire (i.e. double visitor numbers or close down next season) then they would probably have a go at something innovative. As Samuel Johnson famously said, "when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully".

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I was listening to a very interesting radio program this morning on the history of the 20+ year old Japanese economic malaise. Not news I know, but it was interesting to hear the story laid out like t

TJ OZ always seems to find these unrealistically extra bright fluroescent colors from somewhere to paint the picture.   While it was certainly better than many expected due to March and all that, tr

Lots of them are leaking money big style.

 

See these:

http://www.snowjapan...he-1112-season/

 

I don't know details, but from what I can tell most lose money.* They do not make it up in summer.** They just seem to lose money.*** How they stay open, I do not know.

Then again, more and more aren't, so perhaps we'll just see more of that.****

 

* Apart from in Hakuba

** Apart from in Hakuba

*** Apart from in Hakuba

**** But not in Hakuba

 

;)

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So a few casualties, but no one of real significance?

 

if they don't make money and they don't close down, there must be money coming in to make up the shortfall. Government money? Parent company money from other profitable enterprises? Banks refusing to let bad investments become completely worthless? Seems like a magic pudding approach, and magic puddings, as Europe is currently discovering, aren't really magic at all - they just seem that way for a while.

 

BTW, here is the link to the radio program that started me thinking on this, if you're interested.

 

http://abc.com.au/rn/rearvision/stories/2011/3336223.htm

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Well there have been some higher profile casualties - Arai Mountain and Spa for one.

 

In my area, there's a few that seem to have narrowly avoided death a few times. One being Kandatsu Kogen which would be a very big casualty if it happened.

 

I really don't know how they survive. Would be interesting to know.

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It's difficult to find out isn't it, especially when people go on about things being "the best ever" when it clearly is not. Smoke and mirrors in order to create a positive image.

 

I think there will be more casualties, they can't go on forever losing. I think they just had big buffers and/or other arms to their business that subsidised the ski resort part.

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one idea that might be why some ski areas are still open.

 

Many of the local tourism orientated businesses will tied into local banks (not national ones). These could be pensions, restaurants and stores. If the local ski area closes then most of these businesses will default on their loans to the local bank. In order to stop this happening the banks could/would write off losses against the ski area.

 

Not sure if the above is true in any way but just thinking how/why they can stay open.

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This is endemic all over Japan though, as we all know change happens in Japan at an almost Evolutionary pace, but you look around small towns and cities and see the amount of shops selling crap that has no customers.......no one seems to be bothered if they make money or not!!

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The new burger place in Hakuba has a tent. Nice food and nice people though.

 

That all sounds very.. nice.

It it a nice tent too? In a nice location?

 

Well if you're inviting me to talk about it, yes they're good people well into riding the mountain. If anyone on here is into offpiste, its one of a number of places to eat in Hakuba where you pick up some local knowledge. Some value-added to go with your food. Its called Alaska Burger and is before you get to the main 7-11 on the Olympic Road. The tent is just a summer thing I guess. In terms of location they've got a great view, as has everywhere along that part of road. The food is handmade burgers.

 

Obviously you'd never get away with a marquee and hut combination in a prominent place in a British or a European tourist town, but this is Japan where the rules and prevailing standards are different. In that context Alaska burger putting up a tent in summer is no big deal. I only mentioned it because Muika was talking about a burger place over his way and joking about its level of investment. A couple of new restaurants with new buildings have actually been built in Hakuba in the last few years, would you believe, but they're for the dish that most Japanese people bring in their heads when they come to Nagano, which is soba. In summer you see folks queuing up to get in.

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I'm not an accountant and couldn't drop the subject fast enough at college, but I believe accounting standards in Japan mean that loans are priced to book value (value when built), not market value (realistic value now). I suppose if businesses do go bankrupt, it means you have to ditch the fantasy book value and all of a sudden your bank becomes completely insolvent. So lets keep the plates spinning and give the clown some Thai slimming tablets.

Edited by Mr Wiggles
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Metabo

 

I don't know about your area, but in Nagano, a lot of on-hill food is poor quality and overpriced. I'm sure anyone can see plenty of room for improvement there.

 

I don't live in a resort region, but I guess the quality of on-hill food is about the same everywhere...

Yeah, I guess it could stand some improvement. (Never actually bothered me, I have to admit, but that probably just shows how low my standards are.)

 

A suggestion of mine, which I've made before, is to make more pet-friendly facilities. A dog run in a corner of the base area, some pet cages in hotels or at least places where guests can leave a pet cage... Cheap ways to make it easier for people with pets to visit.

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Much of the above, and don't forget tax writeoffs. Also, the present cost of firing all the excess staff at these places might well outweigh the future potential cost of just keeping them on at lower payscales -- to say nothing of the noblesse oblige (hope I spelled that right) image factor for whatever company has the ultimate responsibility for the workers. Yes, the employer/employee social compact has weakened quite a bit over the past two decades, but hasn't completely degenerated yet -- one of the things that make Japan such a copacetic place to live, IMHO.

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omachi1.jpg?w=510&h=382

The road through Toyashina on your way to Hakuba. I live in one of the most beautiful places in the world and I'm happy to be here. Sometimes you have to look beyond what is directly in front of you to appreciate the beauty.

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Sure, then the government steps in and bails out the banks, just like in the U.S. (at least the banks the govt likes) or Europe.

They've done that already, that's why Japanese public debt is now a world leading 225% of GDP and steadily rising. To put this in perspective Greece's ratio is 130%, and we know how much trouble they are in.

 

Currently, over 60% of Japan tax receipts are used to pay off interest on debt. If you keep on spending more than you earn, eventually the money runs out, you can't cover your commitments and you have a sovereign debt crisis, as we have now in Greece. I'd suggest that propping up unprofitable skijos would be an obvious spending cut target in that scenario.

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So I guess there's no one out there who really knows the answer to my question about whether these resorts are profitable or not, and if not, how it is that they don't close down.

 

I am assuming that we don't see an urgent push towards commercial re-invention because the resorts don't feel a need for urgency, and that if things really were dire (i.e. double visitor numbers or close down next season) then they would probably have a go at something innovative. As Samuel Johnson famously said, "when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully".

 

I think some of them actually are cash-flow positive, if you check out their parent companies' financial statements (for the publically traded ones -- BUT I have no training in accounting, so may well not be reading them right). But even for those, I doubt there is much extra money available for expansions or improvements. But there still may be some low-cost things places could do that would increase their draw (like, as mentioned, opening off-piste areas, putting more creativity into food offerings, increasing pet accessibility, etc.)

 

I am wondering what other such measures there may be. For example, since nobody has money to expand the size of their hill, doing more tie-ups with neighboring hills (joint season tickets, etc.). Of course there is some of that going already, but could be room for lots more in that direction, I think.

 

Other ideas?

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Sometimes you have to look beyond what is directly in front of you to appreciate the beauty.

 

And what a huge shame and embarrassment that really is.

 

With the natural cards they have been dealt, the Japanese really should not be gobbing all over it making it as ugly as it is.

 

The good thing about winter is that snow often covers up lots of the wrecked cars, old, crumbling buildings and comical signs/building architecture from the 1960s.

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not only the 60s but a lot of 80s eyesores as well.

Your right on the snow covering up.

I had a meeting with the town mayor yesterday and he surprised by saying the same thing!

How they will go about cleaning up? - I do not know.

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