Industry News
After years of uncertainty and financial instability, the New Zealand Department of Conservation (DoC) has granted a 10-year concession to Whakapapa Holdings Limited (WHL) to operate the Whakapapa ski field on Mt. Ruapehu. The decision marks a pivotal moment for New Zealandโs most prominent North Island ski destination, which has faced serious questions about its long-term viability following the collapse of its previous operator.
The concession, confirmed in a statement Tuesday, April 29, by DoC director-general Penny Nelson, allows WHL to manage the ski field and operate six accommodation buildings in Whakapapa Village. โDoC will be closely monitoring the ski field activity to ensure everything is running smoothly,โ Nelson stated, adding that she carefully considered public feedback, iwi engagement, and hearings during the concession process.
The announcement concludes a fraught period for the ski field, which entered crisis in October 2022 when Ruapehu Alpine Lifts (RAL), a public benefit entity, went into voluntary administration. Despite receiving approximately NZD 50 million (USD 30 million) in government funding to stay afloat, RAL could not secure a long-term solution. The ski lift operator of both Whakapapa and Tลซroa ultimately filed for bankruptcy in June 2023.
The new operator, WHL, effectively emerged from RAL’s remnants, now backed by The South Island Office, a private investment group led by ski industry veteran Tom Elworthy. Elworthy brings over 15 years of operational experience across major ski areas such as Tลซroa, Cardrona, and Treble Cone. Beyond hands-on operations, he spent 21 years supplying snowmaking and grooming equipment to ski resorts nationwide, establishing himself as a key player in the sector’s infrastructure development. โWhile WHL is a private company โ a key shift from RAL’s not-for-profit model โ CEO Travis Donoghue said the mission remains centered on preserving the mountain’s legacy and growing its appeal.
Speaking in an interview with the New Zealand Herald, Donoghue said the company was โecstaticโ following the decision, calling it โa really, really happy day for us to understand that weโve got that concession in our hands now.โ He noted that the concession brought long-awaited certainty to employees and the surrounding community after years of volatility. Though the 10-year term is shorter than the typical 30- to 40-year concessions offered to ski operators, Donoghue said the company would use the initial years to build trust and relationships โ particularly with iwi partners, the Mฤori tribal groups that have ancestral ties to the land and play a central role in cultural and environmental stewardship in New Zealand. A key challenge, however, may come from within those iwi communities themselves.
Newsroom reported this week that Ariki Sir Tumu Te Heuheu, paramount chief of Ngฤti Tลซwharetoa, had written to Prime Minister Christopher Luxon expressing concern over the Government’s handling of the mountainโs future. Te Heuheu accused the Government of sowing division among iwi and stated that Ngฤti Tลซwharetoa would not support future concessions or development.ย While Donoghue told the New Zealand Herald that WHL had a โgood overall relationshipโ with iwi, he acknowledged that the company must improve communication and deepen its understanding of the evolving landscape of Treaty redress and internal iwi dynamics.
Some community concerns have also emerged about the shift from a not-for-profit model to a private entity โ particularly that profits are no longer required to be reinvested in the ski field. But Donoghue rejected the idea that private ownership necessarily posed a threat to the mountain’s conservation or visitor experience. โTo be a responsible company today, we have to put those things first,โ he told the New Zealand Herald. โThatโs where I say people shouldnโt fear the change.โ
The concession comes with certain conditions. WHL is required to submit a forward-looking development plan after five years. Donoghue emphasized that any long-term development would be designed in close consultation with local stakeholders. Improving snowmaking capabilities is one of the companyโs top priorities for the near term.
WHL is also wasting no time preparing for the upcoming winter. Donoghue said season passes could be on sale as early as next week, with the ski field scheduled to open on May 30. The company will continue last yearโs popular offer of free passes for children under 10. Adjacent Tลซroa announced its season passes earlier this week and sales are commencing today, May 1.
Despite the mountainโs troubled recent history, Donoghue remains optimistic. He pointed to a 28% increase in first-time snow visitors in 2024 compared to 2023 as a sign of growing interest. โWeโre not going to turn back on that rich legacy,โ he said. โBut weโve got an opportunity now to create more experiences… and possibly turn that first-time snow seeker from a sightseer into a skier.โ New Zealandโs government has made clear its support has limits, while Donoghue expressed confidence WHL would not need public funding in the future.
As the southern hemisphere winter approaches and the resort is set to receive its first dusting of snow overnight, the question now is whether Whakapapaโs new leadership can balance environmental stewardship, iwi partnership, and financial sustainability to restore one of the countryโs most iconic alpine destinations.
