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The Development of Ski Areas and Its Relation to the Alpine Economy in Switzerland

Pascal Troxler, Marcus Roller, Monika Bandi Tanner

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft - CRED

Abstract: Cableways alleviate access to the Alps and were crucial in establishing the skiing tourism boom of the after-war years. Moreover, cableway operators employ a large share of residents, are complemented by tourism-related services and are therefore a key economic pillar in otherwise laggard regions. We exploit comprehensive historical data of all ever-built cableways in Switzerland linked to federal tax and population data to show how much ski area access benefits the municipality's economy. Evaluating difference-in-differences sheds light on how ski area access municipalities evolved economically compared to those without access. We find that opening a ski area between 1940 and 1980 is related to economic growth that persists until today. Particularly, it attracted new residents and created more productive employment opportunities in tourism-related services. Thereby raising incomes and tax revenues. Our results contribute to the debate of what economic risks access municipalities face once the decreasing snowpack forces a ski area to close.

Keywords: Tourism development; regional economics; historical ski area data; climate change exposure (search for similar items in EconPapers)
JEL-codes: N74 N94 O18 R11 Z32 (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-env, nep-geo and nep-his
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