Industry News
In a bid to offset economic pressures, the Victorian government plans to privatize operations at Lake Mountain Alpine Resort and Mount Baw Baw, two Australian ski resorts that have struggled to turn a profit. The government aims to secure private management through an expressions-of-interest campaign starting in December, potentially under a 99-year lease. While the move seeks to ensure the resorts’ sustainability, industry insiders have raised questions about the timing just before Christmas and the feasibility of a successful sale amidst climate change.
Located about 120 kilometers (75 miles) from Melbourne, Lake Mountain is a cross-country skiing destination with an elevation of 1,433 meters (4,701 feet). It caters to families and beginners and features 37 kilometers (23 miles) of trails. In summer, it becomes a hub for hiking and mountain biking.
A little further afield sits Mount Baw Baw, around 170 kilometers (106 miles) east of Melbourne. It is the smallest Victorian downhill resort, with an elevation of 1,567 meters (5,141 feet). Its 35 hectares (86 acres) of skiable terrain, supported by seven lifts, make it a modest destination for beginners and intermediates. However, its low altitude and inconsistent snowfall have presented challenges recently.
The two small resorts have faced much pressure from larger, private-owned Victorian competitors, such as Mount Buller, Hotham, and Falls Creek, which attract more visitors with a more expansive offering. In addition, two poor subsequent seasons after two Covid years have put financial stress on operations and have required government subsidies to keep operations going at these resorts. The government subsidies have raised eyebrows with the privately-operated resorts.
Interested parties will make offers via “Buying for Victoria,” with a tender process expected to be announced in early December. While the government aims to find private operators capable of reinvigorating these resorts, the uncertainty surrounding profitability, operational costs, and timing leaves the future of Lake Mountain and Mt Baw Baw in question. According to the Australian Financial Review (AFR), the expressions of interest period will be live until early February 2025.
