Industry News
In a twist that could make the plot of a psychological thriller, it has emerged that Alterra also has its eyes on the Swiss ski resort Flims-Laax-Falera. According to several Swiss newspapers, Vail Resorts’ arch-rival is rumored to also be considering the Graubünden/Grischa freestyle mecca. Last week, it emerged that Vail Resorts was rumored to be in negotiations with Flims-Laax-Falera regarding a strategic investment. While neither company confirmed the rumors (which they can’t as they are both listed companies), Swiss insiders alleged that the U.S. conglomerate was considering an investment or acquisition of Flims-Laax.
Alterra, which issues the popular IKON Pass, has recently secured a partnership with the ski areas near St. Moritz, Switzerland, adding a world-famous destination to its global portfolio of pass offerings. While not an acquisition, the partnership expands Alterra’s product offering in Europe and essentially blocks Vail Resorts. In addition, Alterra extended its partnership with Zermatt, Switzerland, in May this year, which has existed since 2019.
While Alterra has been focussing on strategic partnerships, Vail Resorts has been on an acquisition path across Switzerland, buying majority stakes in Andermatt and Crans-Montana in the last two years. It has been alleged that Vail Resorts has been investigating several large ski resorts in the Swiss canton Graubünden/Grischa, which is home to several of the country’s largest, oldest, and most snowproof ski resorts.
Flims-Laax-Falera is located in the canton of Graubünden/Grischa in the south-east of Switzerland, about two hours from Zurich airport. The combined ski area offers 140 miles (224 km) of groomed runs and five terrain parks serviced by 28 ski lifts. The majority of the resort is situated at an altitude of between 6,560 and 9,840 feet (2,000 to 3,000 meters), making it one of the most snowproof ski resorts in the world. Flims-Laax, as it is known for short, is well known as a Freestyle mecca and each year hosts the FIS Freeski & Snowboard World Cup in Slopestyle and Halfpipe, also known as the Laax Open.
The Flims-Laax-Falera ski area is operated by “Die Weisse Arena Gruppe” (English: The White Arena Group), which is majority-owned by Reto Gurtner. Gurtner, a local businessman with a law and business degree, took over the Laax mountain railway from his father in the 1980s. He merged the operations of Laax with those of neighboring Flims in 1996 and created an interconnected ski area with an annual turnover of around CHF 120 million (USD 140 million). Gurtner modeled the merger of the resorts on Vail Resorts’ business model and also focussed on owning and operating the ski school, ski rental, and hospitality on the mountain and in the three villages Flims, Laax, and Falera. In 2020, Gurtner stepped back as CEO, but when the new CEO, Markus Wolf, abruptly departed along with four other members of the management, Gurtner stepped back up as interim CEO. The fact that no new successor has been found at Die Weisse Arena Gruppe has been adding fuel to the acquisition rumors.
If Alterra has now entered the beauty contest around Flims-Laax-Falera, things in the Swiss ski resort industry could become quite heated. American tourists have become the second largest foreign tourist group after German tourists. In the 23/24 season, U.S. tourists accounted for a total of 1 million overnight stays in Switzerland, an increase of 12.1% from 22/23. A total of 463,000 U.S. Americans flocked to the Swiss Alps in the 23/24 winter, an increase on last season of 13.4%. The Ikon Pass gave Zermatt 50,000 additional American winter sports fans last year, so it is understandable that a cooperation with Alterra can be very lucrative for Swiss ski resorts. The big question is, which U.S. Partner offers the best strategic fit for Flims-Laax. Only time will tell.
