Millions in taxpayer funding as government looks to privatise ski operations

The Victorian government is seeking private operators to take over commercial and essential services at Mount Baw Baw and Lake Mountain alpine resorts, both of which have operated at a financial loss for over two decades.

Financial Strain on Alpine Resorts

While the land will remain state-owned, the government is looking for “suitably qualified entities” to manage the resorts in their entirety. Alpine Resorts Victoria stated that commercial entities may be “better positioned” to run the resorts efficiently and invest in their future.

Skifields on Mount Buller, Falls Creek, and Mount Hotham are already privately operated. However, Baw Baw and Lake Mountain have consistently required government funding.

Reduced Public Access and Financial Concerns

The financial difficulties have led to reduced public access. Lake Mountain discontinued its seven-day-a-week schedule during the 2024 winter season, closing on Tuesdays and Wednesdays outside of school holidays to cut costs. Alpine Resorts Victoria also announced the closure of the only childcare center in Falls Creek, serving a permanent population of approximately 320 people, due to financial pressures. The expected economic shortfall from the childcare center is $177,000 by year’s end.

According to Alpine Resorts Victoria’s annual report, its ability to continue operating depends on ongoing financial support from the state government and a letter of comfort.

Political Response and Broader Issues

Opposition Leader Jess Wilson accused the Allan government of mismanaging the alpine resorts, stating they are on “financial life support.” She also noted that Alpine Resorts Victoria is among a growing number of state government agencies reliant on emergency financial support.

The government bailout for the alpine resorts follows a similar situation with Greater Western Water, which also received a letter of support to remain operating as a going concern.

Government Response

A state government spokesperson said the search for a private operator aims to increase visitor numbers to Lake Mountain and Mount Baw Baw. The government continues to work with Alpine Resorts Victoria on financial sustainability, including considering further funding and letters of comfort. The current letter of financial support is set to expire in April.