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The winter sports industry is a powerhouse of the global economy, fuelling substantial revenue streams through tourism, equipment and a vast array of ancillary services.

As the appetite for snow-based activities rises, the economic impact of this sector reaches far beyond the slopes. From job creation and infrastructure development to regional economic growth, winter sports serve as a major engine for both local and global markets.

At SustainaSki, our mission is to guide the industry toward a more sustainable future, but first, we must fully grasp the urgency of this endeavour. This week, we explore the complex economic influence of the winter sports industry, highlighting its financial footprint, the challenges it faces and the looming threat of climate change that could have catastrophic effects on the sector’s long-term viability and community.

Shrinking Seasons

The writing is already on the wall, or rather, in the snowpack data. Over the past several decades, ski seasons have been shrinking at an alarming rate. According to Nature Climate Change, European ski seasons have shortened by an average of 38 days since 1960, with lower-altitude resorts taking the hardest hit. Meanwhile, the National Oceanic and Atmospheric Administration (NOAA) reports that winter temperatures in North America have climbed by 0.16 degrees Fahrenheit per decade since 1895, leading to erratic snow conditions and early melt-offs.

The economic toll is substantial. The U.S. ski industry generates over $20 billion annually and supports more than 191,000 jobs. In Canada, winter sports pump approximately $6 billion CAD into the economy each year, sustaining thousands of seasonal and permanent workers. Across the pond, Europe’s ski sector is even more integral, contributing an estimated €34 billion annually. Austria, France and Switzerland, in particular, rely heavily on winter tourism to fuel their GDP growth, but if snowfall continues its retreat, these economic engines could sputter.

Comparing Economies: North America VS Europe

Though both North America and Europe are ski tourism powerhouses, their economic structures and vulnerabilities differ. While Europe has a larger economic stake in skiing, North America’s industry is more centralised under major corporations with deeper financial buffers. Regardless of structure, both regions face the same grim reality: adapt or decline.

• Europe: The European ski industry benefits from a deeply entrenched infrastructure, with many resorts situated at high altitudes where snow cover is more consistent. France alone welcomes over 50 million skier visits per year, making it the world’s top ski destination. Austria’s ski industry contributes over 4% to its national GDP, underscoring the country’s reliance on winter tourism. However, lower-altitude resorts in the Alps are increasingly on borrowed time, with some already shuttering due to unreliable snowfall. Europe reigns supreme in the skiing world, hosting 62% of global skier visits, with the Alps alone drawing 43%. With an estimated €10 billion in annual turnover and 1,500,000 jobs dependent on the industry, skiing is the backbone of many European economies. Resorts in France, Switzerland, and Austria are lifelines for local businesses, from hotels and restaurants to equipment rental shops.

• North America: The U.S. and Canada have a more corporate-driven ski industry, with major resort operators like Vail Resorts and Alterra controlling multiple properties across the continent. These conglomerates generate billions through lift ticket sales, hospitality and real estate development. However, lower-altitude resorts in California, Vermont and the Midwest are struggling to stay viable. Canada, with its naturally colder climate and northern geography, has fared slightly better, but it, too, faces long-term risks as climate patterns shift. North America may have fewer resorts, but its economic footprint is just as impactful. The U.S. skiing and snowboarding market was valued at $5.53 billion in 2023, projected to reach $7.74 billion by 2030. Meanwhile, the broader outdoor recreation sector contributes a staggering $1.2 trillion to the U.S. economy, supporting 5 million jobs, with winter sports playing a key role in states like Colorado and Utah. Canada, with its world-class resorts in Whistler and Banff, isn't far behind. The Western Canadian ski industry generated $2.73 billion in 2022/23, a 32% increase from the previous season, proving that demand for winter tourism remains strong.

An Economic Avalanche

If ski resorts struggle, the financial fallout is immediate. In both Europe and North America, poor snow seasons or resort closures won’t just disappoint skiers - they could create a nightmare scenario for the communities and businesses that depend on them.

When snowfall declines or visitor numbers drop, layoffs follow, giving way to rising unemployment, declining household incomes and reduced local spending. The immediate burden often falls on government support systems, as job losses increase the demand for welfare assistance while shrinking tax revenues strain public budgets. Healthcare systems would similarly the pressure, not just from an increase in stress-related conditions , but also from a loss of funding that typically comes from a thriving tourism industry. Meanwhile, as job prospects dwindle, younger generations may leave in search of better opportunities, leading to a long-term loss of skills and knowledge crucial to maintaining the local economy.

Beyond direct employment, skiing fuels a massive supply chain. From high-end ski apparel brands to ski lift maintenance crews, the ripple effect of a struggling industry could be felt across multiple sectors - even impacting airlines and transportation networks that depend on the seasonal surge of tourists heading to the mountains.

The Sustainability Slalom: Adapting to Climate Change

But here’s the harsh reality, climate change is tightening its grip on the ski industry. Since the 1950s, Europe has lost 186 ski resorts due to rising temperatures and declining snowfall and experts predict that many more, especially smaller resorts, could vanish within the next two decades. In North America, shorter winters and unpredictable weather patterns are already forcing resorts to adapt, relying heavily on artificial snow production to keep slopes open.

To stay afloat, resorts on both continents are diversifying their offerings. Higher-altitude resorts are investing in summer tourism, offering mountain biking, hiking and even alpine coasters to ensure year-round revenue. Nonetheless, there is still a large disparity to fill the boots of the ski industry.

Sustainability initiatives such as renewable energy-powered ski lifts, improved snowmaking efficiency and eco-friendly infrastructure are becoming industry priorities, although many of these are short term solutions and a more defined approach is necessary for future generations.

The Path Forward

The mountains aren’t going anywhere, but if we want to keep skiing on them, it’s time to get serious about sustainability. Without proactive adaptation, closures will mount, economies will suffer and communities built around winter sports will be left in the cold. For skiers, resort operators and mountain towns, the stakes couldn’t be higher. The challenge ahead is steep, but with the right strategies, the industry can carve out a resilient, sustainable and profitable future.

While many solutions are being explored, the pressure on businesses to stay afloat financially has given rise to short-term solutions which, while they meet the requirements of shareholders, do not protect the future of all of their stakeholders.

That’s where SustainaSki comes in - guided by our core values of collaboration, transparency and innovation - we want to help businesses in this industry to create value beyond the balance sheet and ensure future generations of mountainous communities have an environment not just to survive, but to thrive.

Coming up next: We’re diving into the top 10 initiatives driving sustainability in winter sports, exploring how industry leaders are making an impact. Subscribe now to make sure you don’t miss it!