Annual report 2004/05

Åre
Copenhagen, Helsinki and Stockholm to
Östersund and Åre have been successful
and for the entire season approximately
7,000 guests made use of the option
to fly. Åre also displayed a substantial
increase in the number of guests during
the summer.
Market
Approximately 80% of Åre’s guests are
from Sweden, the majority of which
come from the Mälardalen/Stockholm
region. The number of foreign guests is
continually increasing. The largest
foreign markets are Norway and
Finland, but through co-operation with
foreign tour operators, guests are also
arriving from Great Britain, Denmark,
Russia and the Baltic States.
occupancy rate of beds in Åre has
continued to be extremely positive.
Åre 2007
SkiStar has a 15% holding in Åre 2007
AB, which is the company arranging the
FIS Alpine World Ski Championships
2007. After the World Championships,
SkiStar has committed to assume the
investments made by Åre 2007 in and
around the skiing area prior to the
World Championships, at an estimated
market value of MSEK 36.
Development opportunities
Åre has good development
opportunities. Åre has very good
infrastructure, with a nearby airport, a
railway line direct to Åre By, and a
motorway through the town. The
increased bed capacity, in combination
with the continued investment in
affordable transport solutions, provide
good opportunities for many more ski
guests to visit Åre in the future. Lift
capacity in the skiing area is also good
and will be able to accommodate an
increase in the number of guests.
Another positive trend is that the
number of foreign guests is increasing.
Greater international interest prior to
and in conjunction with the FIS Alpine
World Ski Championships 2007 should,
therefore, provide opportunities for
consolidating this trend.
Åre is a resort with almost one hundred years’ skiing tradition. The first ski lift, Bergbanan, was
built in 1910 and it was no coincidence that a lift was built here as Åreskutan offers the best
skiing imaginable, both one hundred years ago and today.
The destination of Åre, which is
situated 650 km northwest of
Stockholm, has three resorts: Duved,
Åre By and Åre Björnen. Each resort
has its own profile and target group.
Åre Björnen, the furthest east of the
resorts, is a favourite with children.
But just three lifts away is Åreskutan’s
most challenging skiing, where parents
can satisfy their skiing desires. The fact
that Åre Björnen is so close to advanced
skiing facilities is a major competitive
advantage.
Operating income and results for Åre
MSEK
Duved, situated west of Åre By, also has
a long history. Duved is more relaxed,
with a number of shops and restaurants,
and the skiing is varied and particularly
suitable for families with children who
can already ski.
Åre By is the most well-known resort.
Here you will find fantastic skiing
directly connected to a small town with
a continental flair and a great atmosphere
and long tradition. Åre By also
has a wide selection of restaurants,
activities and entertainment.
1 September - 31 August
2004/05 2003/04
Net sales 265 238
Other income 3 0
Operating expenses –205 –187
Depreciation –31 –31
Operating profit 32 20
Operating margin, % 12 8
Net sales and results
Net sales in Åre increased by MSEK 27
to MSEK 265 and operating income
increased by MSEK 12 to MSEK 32.
Sales of ski passes improved by 6% to
MSEK 153. The number of train tickets
sold to Åre increased from 9,000 in
the 2003/04 season to over 26,000
for the most recent winter season. The
first season with charter flights from
Facts about Åre
Number of lifts, 40
Lift capacity, skiers per hour 47 400
Number of slopes, 102
Longest slope, km 6.5
Total length of prepared pistes, km 100
Maximum vertical drop, metres 890
Highest prepared ski area,
metres above sea level 1 274
Total prepared ski area, m² 4 400 000
Area covered by snow, m² 2 000 000
Half pipes, 1
Dream parks, 3
New features
In order to further reduce the distance
to densely populated cities and towns,
efforts continue to be concentrated on
effective and affordable transport
solutions. The charter flight concept
is being expanded for the winter with
greater capacity from existing departure
cities and by launching the new
departure cities of Gothenburg and
Malmö. Two new slopes in the ski area
with snow-making systems are ready
for the winter, one is in Duved and the
other is the new run for the women’s
downhill race at the 2007 World Ski
Championships. Thanks to the new E14
motorway entering a tunnel and
bypassing the Olympic area, it has been
possible to widen the lower section
of the slope from 30 to 130 meters.
Developments in Åre have led to many
external players investing in hotels and
cabins. As a result, the trend in the
Åre in figures
2004/05 2003/04
Number of beds rented 5 670 5 350
Occupancy rate, % 81 82
Ski school students 13 800 12 500
Rental ski/equipment 5 700 5 200
Ski days 922 000 877 000
Ski days
Occupancy rate
Division of operating income and costs, MSEK
Operating income 2004/05 2003/04
Alpine skiing/Lift 153 147
motorway
Accommodation 34 30
Ski rental 22 23
Ski school/activities 7 7
Sports outlets 9 6
Property 18 16
Other 25 9
Total revenue 268 238
Costs
Goods –21 –14
Personnel –93 –88
Other –91 –85
Total costs –205 –187
30
31