Do changes in snow conditions have an impact on snowmaking investments in French Alps ski resorts?

This study investigates the relationship between snow conditions and snowmaking investments for over 100 French Alps ski resorts. Investment trends represent a critical issue in capital-intensive sectors such as the ski industry. The data are based on snow reliability indicators and snowmaking investments covering 1997-2014. Descriptive statistics reveal that snowmaking has been the second investment item for ski resorts regardless of the elevation or ski resort size. The study finds that snowmaking investments are highly negatively correlated to snow conditions of the prior year for small and medium-sized ski resorts. Other factors are also likely to play a significant role in driving snowmaking investment dynamics.