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The latest round of cutbacks at Whistler Blackcomb (WB) is hitting year-round, salaried employees this time, with the announcement that wages will be rolled back to last year’s levels and incentives will not be paid.
In response to questions about reports of significant losses at WB this winter, President and Chief Operating Officer Dave Brownlie wouldn’t release any dollar figures but said skier visits are down 15 to 16 per cent so far for the 2008-’09 season compared to last winter.
Meanwhile, Tourism Whistler statistics are showing an approximate decline in hotel room nights of 11 per cent through February — somewhat welcome news after early-season projections indicated a potential drop of up to 20 per cent.
“We don’t talk about our numbers externally but certainly we’re sharing with staff the challenges,” Brownlie said Tuesday (April 14). “It has not been a good year for Whistler Blackcomb or, quite frankly, Intrawest (WB’s parent company).”
Salary increases were implemented at WB in July 2008, after a strong winter season and amid expectations of another one, Brownlie said. But by the fall Intrawest had initiated a wage freeze, so WB salaries are being rolled back to early 2008 levels to make things equitable across the company, he said. There will be no increases this year.
Because of the decline in business this winter, incentives will also not be paid this year, Brownlie said.
The cutbacks aren’t welcome news to WB staff, but Brownlie said employees have been understanding — especially considering the broader economic situation.
He said WB officials have worked to reduce operating costs at two other points in the season — in November and again in February, when a chunk of seasonal ski and snowboard school instructors were laid off.
While all costs are being scrutinized “very intensely,” efforts are being made not to compromise safety or the quality of guest experience, he said.
“Although we’ve had a challenging winter and we’ve had to make some tough decisions, the biggest reductions at Intrawest have really come at the corporate level,” Brownlie said. “We are doing absolutely everything we can to protect the guest experience.”
On top of the global economic meltdown, WB faced the challenge of minimal snow early this season. Brownlie said the Peak Chair didn’t open until Jan. 24 because of a lack of snow, which is almost unheard of. The Peak is “always” open in time for Christmas, he said.
But going into the start of the Telus World Ski and Snowboard Festival this weekend, things aren’t all gloom and doom. Whistler has enjoyed “great snow, great weather and good numbers” in recent weeks, Brownlie said.
“We’re certainly ending on a positive note,” he said of the ski season.
And even with a 15 per cent drop in business, he figures WB had the most visits of any mountain in North America.
Tourism Whistler’s (TW) data also shows that Whistler has fared better than some of its competitors this winter, said Barrett Fisher, TW president. While the resort overall saw a drop in business compared with last winter of about 11 per cent from November through February, some Colorado resorts are seeing a 15 to 20 per cent decline, she said.
TW’s own long-range forecasts at the start of the season predicted a 20 per cent drop, but thanks to last-minute bookings things picked up. Spring break and Easter were strong, and all the world cup events helped draw visitors, Fisher said.
“We had very last-minute bookings this whole winter,” she said.
Looking forward, TW is seeing some bright spots on the horizon — even though WB officials aren’t expecting a real recovery until after the 2010 Olympic Games. Fisher said because of the big Federation of Canadian Municipalities conference, June is looking “quite strong” and the Victoria Day long weekend in May is pacing ahead of last year.
TW’s forecast for the summer is to be flat compared to last year, but a decline of six to eight per cent is possible depending on what happens in the U.S., she said.
But Brownlie said WB is preparing for further challenges leading up to and through the 2010 Games. Mountain officials are expecting even fewer skier visits next winter because of Olympic aversion and a lack of parking, he said.
WB will “definitely” hire fewer employees leading up to next winter, he said.
“Going forward, we don’t see it getting better faster,” Brownlie said.
