‘Risky’ but still possible says former skifield boss
Dave Mazey confident ski field is still viable
Dave Mazey might have pulled out of a deal to take over Whakapapa skifield, but he’s still confident the field could be a commercial success. The Government has agreed to give Ruapehu Alpine Lifts (RAL), which is in voluntary administration, another $7 million to keep it open for the 2024 season.
RAL, which previously operated both the Whakapapa and Tū roa fields on Mt Ruapehu, has already had more than $20m in taxpayer bailouts.
A deal with a new operator for the Tū roa side of the mountain is imminent but there seem to be no viable options for Whakapapa.
Whakapapa Holdings, led by Mazey, tried to buy the Whakapapa skifield but withdrew because of concern over its viability.
Mazey said the difficulty with Whakapapa was that any new owner would have to take on a large debt in the millions, associated with the construction of the Sky Waka gondola in 2018-19.
Some of the financing for the gondola - about $14m, was provided through bonds that were taken up by iwi groups and other investment funds based in the central North Island, plus a loan from Ruapehu District Counci.
“They need to be honoured and they’re secured over the gondola itself, not secured over the overall company.”
Anyone wanting to buy Whakapapa would also need a concession or licence to be able to operate on the mountain.
Mazey said the current offer of concession was restricted to a 10-year term, with the Conservation Act allowing a maximum available term of 60 years.
“But we agreed to that in principle and it’s a recognition of the Tongariro National Park claim, which is being negotiated and considered with the Crown by five different iwi groups, and the outcome that will be a key determinant of what is the long-term future for Whakapapa and Tū roa, that is acceptable.”
A 10-year concession would mean there was no opportunity to make long-term investments but, on the plus side, it would allow the owner to work through with iwi groups and communities what the viable longterm opportunities were to support recreational facilities on Ruapehu, Mazey said.
He believed there had to be another investor or investment form available to take on the business but it was not straightforward.
“The complexity and the volatility of this business, the risks that are associated with it has not been an attractive proposition to any investors at all, as we’ve seen by those that put their hand up when RAL was looking for an equity injection pre2022 and then when primarily the Crown but the receivers and the administrators have been looking for investors in the past 18 months. “It’s a risky business.” Mazey said he would talk with potential investors, answer queries, and provide advice and support as necessary.
He remained optimistic the Ruapehu skifield could be a good business again.
“For 70 years Whakapapa traded positively and I believe that opportunity is still there.”
In the 30 years he was involved in RAL, Mazey said it went through a number of issues such as volcanic eruptions, no snow years and massive fires. “We went through a range of natural circumstances that significantly diminished revenue streams in any one year - but we made it. And I think it’s viable again and that’s why I’ll err on the positive side.”