More than 130 staff made redundant at Mt Ruapehu - Tūroa skifield closed

Wednesday, 24 August 2022

There was hardly any snow at Tūroa last Saturday after warm weather and rain produced what one local called the worst ski season in decades.

A lack of both snow and visitors on Mt Ruapehu’s skifields has led to more than 100 job losses and the closure of the Tūroa skifield until further notice.

Ruapehu Alpine Lifts (RAL) runs operations on the mountain and chief executive Jono Dean said about a third of its 405 staff on the mountain had lost their jobs this week.

This would translate to about 135 job losses.

RAL, a not-for-profit organisation which runs operations at Tūroa and Whakapapa, has been in financial difficulty for some time and today’s developments follow on from a Stuff article last week that said a lack of snow on the central plateau had led to one of the worst ski seasons in decades.

RNZ: Visitors return to Ruapehu, but where is the snow? (This video was first published on Stuff on August 7 2022.)

* Ruapehu skifield company seeks corporate investors to stay afloat

With fewer facilities operational, “the ski area management teams have had to rationalise efforts heading into the second half of our winter season”, Ruapehu Alpine Lifts chief executive Jono Dean said. (File photo)

* Renewed push to honour soldier who gave his life on Mt Ruapehu to save others

The tops of Mt Ruapehu and Mt Tongariro had a good dumping of snow at the start of the season but since then the slopes have been almost bare, with the downturn in visitors creating problems for a wide range of local businesses.

Tourism Minister Stuart Nash had not had an official briefing on the RAL situation. (File photo)

Dean said that with fewer facilities operational, “the ski area management teams have had to rationalise efforts heading into the second half of our winter season”.

“This review has, unfortunately, impacted our people.

“In the next week, we will say goodbye to around a third of our total team of 405 people, with the largest impact seen at Tūroa.”

RAL said those leaving the business included a mix of New Zealand and international staff, with about 17 of the company’s essential skills visa-holding international workers being retained to carry out technical work for the safe opening and operation of ski areas.

This is a regional issue, given the scale of business at Ruapehu, said Weston Kirton, the Ruapehu councillor for Horizons Regional Council.

A Stuff report from August last year revealed RAL was seeking to change its ownership structure and bring corporate investors on board for the first time to keep the loss-making operation afloat.

A shareholder update in February 2021 indicated RAL was hoping to raise $30 million of new equity capital, which corresponded to a 50% shareholding, with nine parties expressing interest.

Tourism Minister Stuart Nash appears to have been caught on the hop by the official announcement from RAL.

A spokesperson for Nash said the minister had not received any official briefing on the situation before the announcement on Wednesday.

However, the minister had unofficially heard that some staff were told on Tuesday that they had been dismissed.

The tops of Mt Ruapehu and Mt Tongariro had a good dumping of snow at the start of the season but since then they have been almost bare. Pictured is Tūroa skifield on Saturday.

The spokesperson said Nash would be actively seeking more information about the situation.

Ruapehu mayor Don Cameron has also been approached for comment.

Horizons regional councillor for Ruapehu Weston Kirton, a former Ruapehu district mayor, said he felt for those affected.

The community generally understood that 'without snow you don't have a business'.

Kirton said it would be important for the regional council to help maintain confidence in affected areas by assisting where it could.

He said he would raise the situation with the regional council by next week at the latest to see what it could do to help.

'I may do that sooner rather than later.'

Kirton said the scale of business at Ruapehu meant the situation was a regional issue, not just a local one.

RAL did not respond directly to questions about whether it was under significant financial threat or the threat of closure, because of the latest situation.

However, Dean said while these impacts were significant, “as of today, there is over half of our planned season left to run”.

“We intend to operate all that we can across both ski areas, as the conditions allow, and remain hopeful that our situation can improve from here.”