The Economic Effects of Ski Resorts on Communities in the State of Maine

Skiing and snowboarding is a fairly expensive activity for participant and one in which the industry as a whole makes handsome profits. In the 2005/06 season, resorts in the Northeast reported an average gross revenue of $18.5 million. (NSAA) With the current weather phenomenon of El Nino, however, resorts in New England especially, have been suffering economically. The gross revenue in New England in the ’05/’06 season was down 4% from the previous year, likely due to the fact the total snowfall declined by 16%. (NSAA) Much of this loss in revenue came during the Christmas to New Years vacation period. In the 2007 season, most mountains were less than half-opened during this peak week and the number of skiers and riders was especially low. With such a large decrease in profits, it is likely that many people will soon be affected (if they have not already been), including local employees. This project, therefore, seeks to analyze the impact that the resorts have on the local economies in order to determine the potential problems the changing snowfall patterns could have on locals’ well-being. It is hypothesized that there will be a strong correlation between the proximity of a community to a resort and the relative economic prosperity of that community; meaning that the ski industry is a pivotal part of their income and livelihood.