Mt Buller says another cancelled season would devastate industry

Victoria’s biggest ski resort has warned struggling businesses “can’t afford to have a repeat of last year” amid fears lockdown may be extended.

The state’s biggest ski resort has warned another cancelled snow season will “decimate” the sector as winter tourism operators desperately hope the lockdown is not extended.

Buller Ski Lifts, backed by Melbourne business identity Rino Grollo, has also revealed it has shelved $30m of further investment into Mt Buller as it looks to rebuild from a coronavirus cancelled 2020.

The latest lockdown follows ski resort operators experiencing huge demand in the lead up to the official opening of Australia’s ski season on the Queen’s Birthday weekend starting June 12.

Buller Ski Lifts, which takes on an extra 600 staff over the winter, has suspended its hiring process as it waits for the state to exit what is scheduled to be a one-week lockdown.

“If we are not able to operate it would decimate the industry,” general manager Laurie Blampied said.

“Right now we are in a state of suspended animation. The one fortuitous element is that while the timing is not great, it could have been a hell of a lot worse had of been a couple a weeks latter when all of the resorts are fully staffed.”

The tourism operator — whose suite of assets include the luxury Mt Buller Chalet Hotel & Suites, ABOM Hotel, Kooroora Hotel, as well as the state’s largest ski lift network — was open for four uninterrupted days of trade last year.

It was a similar story for rivals at Mount Hotham and Falls Creek as Covid shut an industry which usually generate around $800m in annual economic activity.

Snow lovers at Mt Buller.

“We just can’t afford to have a repeat of last year,” Mr Blampied said.

“Our resort lost more money last year than the AFL, and proportionally our business is nowhere near the size of the AFL.

“Businesses in this sector are pretty responsive but if you only trade for four days there is no way any business can survive two seasons like that. If you have had one season like that, the ability to back up and get through another one is really asking the impossible.”

Mr Blampied said the industry has logged exceptionally strong forward bookings from skiers who had last season cancelled and were unable to travel overseas.

“Demand is extreme – we’ve got unprecedented forward bookings for accommodation for this time of the year,” he said.

“The weather patterns and the snow making conditions we have experienced to date are looking very promising. But who knows what will happen?”

Buller Ski Lift general manager Laurie Blampied is concern the state’s second lockdown could be extended.

Buller Ski Lifts was able to provide heath authorities with the details of all lift pass holders and implement any and all government measures around restaurant and bars, Mr Blampied said.

As well as hotels, Buller Ski Lifts owns and operates retail and short-term rental accommodation at Mt Buller and operates a ski school.

The company is owned by the Grollo Group which is backed by Rino Grollo – brother to Bruno – and his son Lorenz.

Rino and Lorenz took full control of Mt Buller assets, as well as the family’s stake in the Rialto Tower, when the broader family company was split in 2000 with Bruno and his son Daniel taking control of the now collapsed Grocon.

The Grollo Group has invested around $60m at Mr Buller over the past five years and had planned to invest another $30m before the pandemic hit.

“It will take us five good years to recover from a year where we virtually had zero revenue,” Mr Blampied said.