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http://www.travelbiz.com.au/articles/7d/0c022e7d.asp

 

Victorian ski resort owner plans Japan venture

 

Australian Alpine Enterprises (AAE), the company that owns Victorian ski resorts Falls Creek and Mount Hotham, has bought a property in Japan’s northern island of Hokkaido.

 

AAE acquired the Niseko Hanazono Ski Field from Tokyo-based Tokyu Land Corporation.

 

AAE md Colin Hackworth said the purchase included a ski-lifting business, resort leisure facilities and a parcel of freehold development land, with the opportunity to develop a resort of 8,000 beds at the base of the ski area.

 

He said the assets were worth more than $100 million.

 

Hanazano is 120 kilometres from Hokkaido’s capital, Sapporo, and often receives snowfalls in excess of 15 metres in a season.

 

Hackworth said AAE intended to create a northern winter destination ski village of choice, not only for Australians and expats in Asia and Japan, but also for Japanese skiers.

 

He said the number of Australians visiting Japan for skiing holidays last year was 4,000, up from 2,000 the year before.

 

Hackworth said this year 10,000 Australians would make the trip north to Japan to ski during the southern hemisphere’s summer.

 

“Japan is the hottest place to go skiing at the moment and Hokkaido is much better than Colorado or Whistler in terms of the quality of the powder snow,” he said.

 

He said Australian Airlines’ new direct flights from Cairns to Sapporo would help boost the resort’s visitor numbers, while cross-marketing opportunities between the company’s resorts in Australia and Japan were excellent.

 

“The opportunity to tap into some of the world’s largest markets such as China and the expat markets of Hong Kong and Singapore will be an important part of the distribution strategy,” he said.

 

Hackworth said AAE intended to make more overseas acquisitions and develop an internationally recognised resort brand.

 

10 August 2004

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slow, the article seems to be saying that Tokyu doesn't own it anymore...

 

Fatts, I'd be surprised if an Australian company hadn't investigated the possibilities. There's more potential than just at Niseko too.

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but isnt hanazono the one that is sandwiched bettween 2 resorts. I read the article but it sounds more like a hotel devlopment project to me.

 

I wrote this before somewhere else.

 

I dont think that you will see any on hill improvements but off hill there should be some new goodies. Bank machines for international banking. More english support. more resort planning rather than a slap together.

 

Japanese rules dictate that you can only open certain amount of terrain per mountain, so dont expect more tree runs or tree plucking going on. But the policy of dont say anything will be there to stay I think. Local rules or something like that. For auzzies heading over here BC insurance is quite cheap here a year of rescue is only 60 auzzie bucks 2 weeks 25 bucks if you get hurt in the trees you must pay the patrol if you have insurance you are covered.

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If this picks up Niseko economy a bit, then it would be a good thing. Down side may be the resort will be crowded. I may start exploring other places to eat my pow.

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Hanazono is only part of Hirafu. Its on the right as you look at the map. Its home to that Strawberries bit everyone goes on about. Some of runs from the the peak join up with its courses.

 

The middle Niseko resort is called Niseko Higashiyama. It has a Prince Hotel at the bottom.

 

They'll have got it for peanuts by international standards, and the potential is there with the direct flights to Sapporo from Oz, barring international terror and oil shocks of course. For their sake, I hope they're not being too optimistic about "Japanese skiers" flocking to them, especially if they're pouring lots of cash into their own facilities. 8,000 beds is certainly not "little". Merrill Lynch made similar noises about offering financial services to Japanese people, and were gone in two years.

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quite slow day here... here's some follow up info.

 

a discussion about it here on forum.ski.com.au:

http://forum.ski.com.au/scripts/ultimatebboard/ultimatebb.cgi?ubb=get_topic;f=1;t=052334;p=

 

 

and a similar article here:

 

http://www.ski.com.au/scripts/admin/news/vnews.pl?ad=-100400-&year=2004

 

Australian Company purchases international ski resort

Monday August 9, 2004

 

For Immediate Release :

 

Australian ski resort operator and destination resort development company, Harmony Resorts Niseko Pty Ltd (HRN), today announced it has acquired the Niseko Hanazono Ski Field from Tokyu Land Corporation (TLC).

 

The HRN purchase includes a ski-lifting business, resort leisure facilities and a fully serviced and sub-divided parcel of freehold development land, with the opportunity to develop 8,000 beds at the base of the ski area.

 

Australian Alpine Enterprises Pty Ltd (AAE), owner and operator of Victorian skifields and associated businesses at Mount Hotham and Falls Creek, has come to indicative terms to purchase 100% of HRN (subject to official Board approval).

 

Located on the Northern Island of Hokkaido, just 120km from Sapporo, the Hanazono ski fields form a part of the greater Niseko Ski Area, one of the largest ski areas in Japan, boasting 31 lifts including a variety of gondolas and high speed detachable chairlifts. The Niseko area lays claim to the best quality snow in the world with only 8% water content and often receives snowfalls in excess of 15 metres in a single season.

 

The opportunity to purchase the Hanazono skifields was identified over twelve months ago by high profile Melbourne Minter Ellison lawyer, Roger Donazzan and AAE Managing Director, Colin Hackworth. Mr. Donazzan has been appointed Executive Chairman of HRN and its Japanese subsidiary whilst Mr. Hackworth has been appointed the Managing Director. Together they will have the responsibility for the ongoing management of the Japanese operations and the rollout of the real estate development strategy.

 

Mr. Donazzan commented on what a unique opportunity the purchase is for HRN. "We have acquired at a discount from invested cost an operating ski field and business assets, together with a significant amount of serviced development land with most of the necessary infrastructure already in place. We will create a northern winter destination ski village of choice, not only for Australians and expats in Asia and Japan, but also for Japanese skiers and their families. The Japanese feel and experience will be maintained, whilst creating an international standard winter ski resort with all the components that we have come to expect here and in North America and Europe." Mr. Hackworth noted that AAE is attracted to HRN because… “The investment will provide AAE with a consistent earnings capacity from operations in both hemispheres - an enviable position for any international ski resort operator, given the seasonality of the snow business. The opportunity to diversify into new markets will provide AAE with the scale to develop some real operating economies of scale across all of its business units both in Australia and Japan.”

 

HRN will operate the Hanazono ski field in partnership with current owner TLC & Tokyu Resort Service Co. Limited which operates the adjacent skifield of Niseko Kogen. “The partnership with TLC will serve to strengthen the product offering within the ski fields of Niseko as well as providing HRN with a solid platform from which to commence operations within the Japanese business and tourism environment,” added Mr. Hackworth.

 

In recent years more and more Australians have visited Niseko to experience the champagne powder skiing conditions. For the 2005 season Australians will be able to access the Niseko snowfields with direct flights from Cairns operated by Australian Airlines to Sapporo’s New Chitose Airport. This puts the snowfields approximately eight hours in traveling time from the east coast of Australia.

 

In 2003/4 the Niseko resorts attracted 700,000 visitors, over 70% of whom frequented the ski areas of Hanazono, Kogen and Alpen. It is expected that the increased investment by HRN in the Hanazono area will provide a significant boost to visitation to the Niseko area with the continued influx of Australian skiers and boarders. HRN seeks to attract Australian skiers who might normally venture to Canada or North America to try out the Japan experience.

 

HRN plans to leverage the investment in both the Australian and Japanese markets with cross marketing activity designed to attract business to the Australian ski resorts of Mount Hotham and Falls Creek. “The opportunity to tap into some of the world’s largest markets such as China and the expat markets of Hong Kong and Singapore will be an important part of the distribution strategy implemented by HRN,” added Mr. Hackworth.

 

The purchase is expected to be completed by November 2004.

 

 

Date Posted: 9-8-2004

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 Quote:
New York-based Merrill posted the largest profit among Wall Street firms in Japan after shutting most of its branches that catered to individual investors. It closed 30 branches and cut 1,800 employees, many of which joined after Merrill bought failed Yamaichi Securities Co. in 1998.
That's from the article you kindly linked there Siren.

Maybe they're not "gone" from institutional investment market, but they failed big time to appeal to the average Japanese punter. However, I'm not at all interested in world of high finance, so please treat my interpretation as that of a layman. At least when Yamaichi closed, the shacho cried on TV and appealed for people to take pity on his former employees.

Getting back to the topic, the Japanese ski industry is crying out for better promotion to overseas customers, so this is a very positive development. However, these new people would be wise not to expect too much from Japanese guests since the margins at ordinary resorts for pensions and hotels are already extremely tight.
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>>That's from the article you kindly linked there Siren.

 

 

Good one MrW clap.gif Good catch.

 

On topic, From an international attraction perspective very few/no Japanese resorts seem to have got it right from either a younger adventure snow type or a family holiday snow type. Judging from the natural resources that I saw, there is a great deal of potential for it to be done a little better. This Australian interest will just be a small part of that improvement with possibly much bigger developments to come from other resort companies/countries. The most interesting chapter will come when a serious US or Canadian resort operator get his hands on a serious chunk of Nagano arupusu (not just the valley foothills into which most resorts are etched).

 

Oh, yeah, this seasonally increasing popularity of Niseko with Australian snow people will also It will also bring the oh-so typical:

 

a) oh yeah, Japan, I visited for 3 weeks last year, I know all about it,

B) Japan? I have been to Niseko for 3 seasons, I know more than you

c) Japan? I have been to Niseko for 3 seasons, ate only Japanese food and know the Japanese lifty on LineC and I don’t own a copy of the Lonely Planet: Japan edition. I know more than you

d) Japan? I lived there, I know more than you do.

e) Japan, I lived there but did it on the rough and never even bothered to ride Strawberries, I know more than you.

 

When ever Australians are involved there is always a ‘been there done that’ pissing competition. This is officially off topic again.

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I was not trying to point out your mistake, as I could tell you are probably not familiar with the financial industry. I just thought the way you put it was misleading - downsizing is certainly not withdrawal. Perhaps I am being pedantic.

 

By the way, do you feel sorry for him, since you mentioned it, presumably to bring out a point?

 

 Quote:
At least when Yamaichi closed, the shacho cried on TV and appealed for people to take pity on his former employees.
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Originally posted by montoya:
“Japan is the hottest place to go skiing at the moment and Hokkaido is much better than Colorado or Whistler in terms of the quality of the powder snow,” he said.
10 August 2004
I can't debate this comment on the merits of snow quality. Japan does have some damn fine powder - some of the best I've ever skied. Terrain, on the other hand, absolutely sucks compared to Whistler or anywhere in the western US or Canada. Horrible planning of runs, horrible planning of lifts, bad management of the mountain (open runs, what's roped off, etc..), oh, and completely horrible guest facilities - at least in the north.

I like this purchase though. Hopefully it will give some new flava to an otherwise stagnant Japanese ski/board industry. So much potential here, so underutilized...
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It was amazing. Did about 75 km over 7 days. Weather was pretty good as well. Could see Fuji all the way across Japan. My body is broken now though. But that will be fixed soon enough.

 

What was really cool though was seeing how much snow is still in the mountains. A few weeks earlier and ther would have been some fun lines in the Tateyama area.

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  • 2 weeks later...

I think this is all overblown. The Aussies come to ski in Japan and now make investments because they have such limited skiing in Oz. Japan isn't a jet lag destination, and they can ski during their summer. A nice hook.

 

I can't think of many other countries that would view Japan as a ski holiday destination.

 

It's tough to imagine what a foreign ski operator could do to a Japanese resort to make this an attractive destination for ski holidays. Expensive, inconvenient, lack of advanced terrain and the language issue. Anybody with enough cash for a weeklong hotel ski stay will be off to the US, Canada or Europe. Any ski bum with duct-taped gloves looking for couch accommodations will remain in his/her natural habitat.

 

I could maybe see wealthy tourists from non-ski countries coming to Japan.

 

As far as Niseko powder goes, it is better than Colorado's increasingly rare champagne powder, but the comparison to Whistler is silly because that resort is not particularly known for its powder. It's known for other stuff. The real powder destination in the US is Utah...nobody has to tell the Aussies this as Mogs and I heard plenty of Oz accents on the Snowbird tram.

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 Quote:
Expensive, inconvenient, lack of advanced terrain and the language issue. Anybody with enough cash for a weeklong hotel ski stay will be off to the US, Canada or Europe
Im not so sure I agree.
I think that you could stay in Niseko and ski for the same as it would cost in Oz and for less than the US.
I would say that it is significantly less inconvenient for Auzzies to get to than USA Canada or Europe.
A short plane ride and 2 hrs on a bus from Tokyo which is half the distance from OZ than to other ski places making the flight a bit cheaper.
Most ski vacationers are not the best skiers anyway and Niseko is not that limited.
I agree there is a language barrier but I think your average auzzie can deal with that.
Japan is also significantly cooler in some circles.
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