Cairngorm funicular failure – economic consequences and way forward

March 22, 2019 Alan Brattey 9 comments

The CairnGorm Funicular has been inoperable for the last 6 months and the economic impact of the closure was brought into sharp focus this week in an article published in the excellent Strathspey and Badenoch Herald.

There has very clearly been a considerable negative impact and local businesses have expressed dismay at the lack of any input from HIE since their initial promises of assistance made in October 2018. It is to be hoped that the Scottish Government are listening and that helpful initiatives will quickly be forthcoming.

Quite how the winter business in Strathspey can bounce back unless considerable improvements are made to the CairnGorm Mountain business is very difficult to see. At present, nobody knows if the Funicular railway will operate during next winter because there has been no information from HIE. Without adequate uplift on the mountain then it is very clear that snowsports customers will continue to go elsewhere. On Sunday 17 March, the upper Cas carpark was not even half full despite there being good snow conditions on the mountain. The slopes were very quiet and if customers aren’t coming to ski on CairnGorm then there are negative financial consequences for the local economy.

The fall from grace of what was once Scotland’s Premier Snowsports destination has been quite extraordinary in its magnitude.

A half empty upper Cas Carpark on Sunday 17 March 2019

How HIE intends to address this ongoing disaster remains unclear.

In 2017 they announced that they would engage an external consultancy to examine the business and make proposals for its future re-development.

The consultants completed their overview by September 2018 and their proposals were subsequently published. There were several ideas put forward that have been met with an unenthusiastic response.

The failure of the Funicular showed that their proposals for 2 multi seat high speed chairlifts in Coire Cas are unworkable because even if they were already in situ they would do nothing to enable non snowsports customers to reach the Ptarmigan building because there is no connectivity between the proposed chairlifts. Even lower ability skiers and boarders would not be able to reach the Ptarmigan due to the lack of connectivity between the Chairlifts. These chairlift proposals do little to ensure that the business can continue with uninterrupted trading whenever the Funicular fails to operate or when it is late in opening due for example to snow accumulations at the tunnel mouth.

A Zip Line was proposed to start at a point above the level of the Ptarmigan building. That idea can be discounted because it is too exposed at that height and a Zip Line couldn’t be used in the frequently windy conditions. The icing that would accumulate on the ropes in winter would certainly mean that they would require to be taken down and spooled up between late October and mid May, approximately.

A “best in class” learning area with a ‘Magic Carpet’ for uplift was proposed for the area between the Daylodge and the base of the Fiacaill Ridge. This winter has shown that there isn’t enough space here for a learning area of any decent size and the gradient is too steep for complete beginners unless considerable snow is used to build it up at the bottom.

A considerably expanded snow making system was also proposed but this winter has also demonstrated that snow cannons alone cannot produce sufficient snow during the cold spells to get through the warm spells. The production costs suggest that a large snowmaking system may not be commercially viable and that smaller scale targeted snowmaking might prove to be a better option.

The Consultants ruled out the development of uplift from the Ciste carpark on the basis that the hill business does not have sufficient scale to justify 2 separate entry points. However, there was little in the way of supportive analysis and they failed to make any detailed examination of the revenue streams that would accrue from fully developing this area rather than simply installing uplift.

The one glaring omission from the consultants’ report was the absence of any significant customer-based market research. If customers are not consulted about what they would like to use on CairnGorm into the future then there is a good chance that they will not return in the numbers necessary to make it a success, if any changes do not provide what they would like to use. The Aviemore and Glenmore Community Trust made a commitment, at their AGM in November 2018, to consult widely with customers with respect to their views on returning mechanized uplift to Coire na Ciste. It is to be hoped that they will honour that commitment and publish their findings, soon.

Building uplift from the Ciste carpark to the Ptarmigan Building has multiple benefits and it could be done without any disturbance to the present business operation in Coire Cas. Furthermore, it would provide for business security with continuous trading when the Funicular cannot operate.

A Gondola/Chairlift hybrid combination would allow uplift to the Ptarmigan for tourists and snowsports users alike.

Coire na Ciste could then be developed as an adventure zone as was previously proposed by CairnGorm Mountain Ltd around 2012.

The lower Coire na Ciste offers an excellent area for the creation of a largescale learning zone in a place that is very considerably more sheltered than outside the Ptarmigan or Daylodge and it also has the potential to incorporate a sledge park which can bring in significant revenues. The picture gives some indication of the length and width that’s available.

The lower Coire na Ciste

It is many times the size of the area outside the Daylodge in Coire Cas being both longer and wider. Another advantage being that it has an angle of slope that is much more suited to the needs of absolute beginners through to 2nd/3rd day learners. One small sized snowfactory should be able to produce sufficient snow to enable continuous operation throughout the season from December to April as is already the case at the Lecht Snowsports Centre

A couple of magic carpets and perhaps a rope tow would provide adequate uplift within the learning zone view that a Terrain park with a variety of features suitable for novices through to experts is something that all aspirational snowsports areas must have as part of their offering to customers.

The Lower Aonach has the potential to provide everything necessary and more besides. There is sufficient width to accommodate multiple features in areas for novices through to experts and there are differing angles of slope as well as plenty of length. This area is very well sheltered from the wind and consequently there is much less drifting here than at the top of the Ptarmigan which has been used as a terrain park for years. In turn, that means much less work is required to dig out the rails and boxes etc each day thereby reducing labour costs. The very large kickers that have been a feature in the

Ptarmigan bowl could continue to be built there if and when there is sufficient snow.

Mountain Biking has been proposed from the Ptarmigan Building down into Coire Cas and beyond.

An analysis of whether it might be better suited in the more sheltered area of the Aonach Bowl, adjacent to the M2 ski piste should be done. A starting point at the level of the Coire na Ciste T-Bar loading area where a Gondola/Chairlift could have an upload/download station incorporated might be better than the much more exposed Ptarmigan building area. Gondolas and Chairlifts can both take bikes up on attached bike carriers, unlike the Funicular Railway that’s unsuited to the carriage of bikes. Trails could be constructed all the way down to Glenmore.

The hill business has now gone bust twice in the last decade and it is abundantly clear to anyone who takes an open-minded look at the future possibilities that radical change is necessary. To simply continue with the failed strategies of the past will just lead to the same outcome and neither the hill business or the wider local economy can afford for that to happen.

The Coire na Ciste carpark has the potential to accommodate 24 Micro Lodges outwith the parking area and around 20 Campervan Hook ups too.

The hill business must look at the possibilities of diversification if it is to become self-financing and not reliant on periodic life support grant funding from the public purse.

24 Micro Lodges attracting 50% occupancy over the year would bring in around 250k of Nett revenue and have a payback period of <2 years which makes them a fantastic investment.

The spend in an adjacent café would be considerable. On Saturday 16 March 2019 there were around 50 customers in the Glencoe Mountain Resort café at 19.51hrs. That was almost 3 hours after CairnGorm Mountain [Scotland] Ltd had packed up for the day and gone home. It is very clear which area is prospering and which is failing.

Further evidence of the failure of the Cairngorm Mountain Snowsports business can be found in the market share data: CairnGorm had an average of 40% of the Scottish Snowsports Market in the 10 years to 2013 while Glencoe had just 8.5% market share during the same time period. Fast forward to the 2017/18 season and the CairnGorm market share had collapsed to just 23.9% while at Glencoe it had risen to 16.6%

The number of Campervans on the road is increasing year on year and there are plenty of them parking in the Ciste carpark, particularly but not exclusively, during the Spring, Summer and Autumn seasons. Putting in 20 Hook Up points would not be difficult to do and the provision of services and an adjacent café/bar would be sure to lead to a worthwhile revenue stream that is, at present, untapped.

The views from the Ciste carpark are much better than from the Cas Carpark and who wouldn’t want to stay up there when you can look at the fantastic scenery through Ryvoan Pass, up onto Meall a Bhuachaille and down to Loch Morlich.

Ryvoan Pass

Meall a’ Bhuachaille

Loch Morlich

Consideration could also be given to the provision of interpretative walks within the lower Coire which could link to an Environmental Education Centre [used as a ski school meeting room in winter] that would incorporate a Turbine unit for Hydro Electric generation as well as toilets and a small scale servery. These would all be located in the floor of the Coire around 600m form the carpark and be central to a snowsports learning zone.

What has to happen now

An open-minded, unblinkered look at all of the possibilities on CairnGorm is a prerequisite of future success. That should involve all interested stakeholder groups and individual members of the local Community. It should be led by the Aviemore and Glenmore Community Trust so that the Community has ownership of the final plans that emerge from the consultations. HIE must step away from this process because there is no faith or trust in their ability to deliver what the community and wider snowsports community desires on CairnGorm Mountain and because there is no future in their continued ownership of the CairnGorm Estate and CairnGorm Mountain [Scotland] Ltd.

What cannot happen now

Any continuation of HIE’s Funicular centred strategy where every effort is concentrated on the maintenance/enhancement of the numbers that use the Funicular. It is understood that HIE intend to take the Ptarmigan building expansion plans forward to the CNPA Planning Committee for determination in either April or May. You do not begin the redevelopment of a mountain business at the top of the mountain and HIE’s plans give every indication that they have learned nothing from their past strategic failures. It’s beyond the time now for the Scottish Government to intervene.

Time is of the essence and progress needs to be swift.

9 Comments on “Cairngorm funicular failure – economic consequences and way forward

  1. An Alpine / Mountain Coaster, Mountain Bike trials, Racing Drone centre – there are plenty of ideas to be had, BUT – at what cost to the natural beauty?

    1. There is a cost to natural beauty… but there is a cost to people’s livelihoods if CM(S)L don’t get this right and fast. Sustainability is obviously exceptionally important but equally so is the financial and social benefit to the people of the local area. Aviemore is not unique in being an area of outstanding natural beauty in the Cairngorms. True it should not be forgotten but people have a choice to make; they can travel a short distance and be completely free of mountain coasters, a funicular railway or mountain bikes racing down a mountain side and “spoiling” their visual outlook of the hill. A ski area has operated on Cairngorm for over 50 years and local people have built their careers and businesses upon not just the snow sports industry, but the wider tourism potential that the Cairngorm’s offers . I read all of these articles and comments and hope that one day a multi-millionaire passionate Scottish snow sports enthusiast will sweep in, convince HIE to allow their investment to get the ciste back up and running (in as environmentally and sustainable method possible) to show HIE and any other party that has continued to cast so much doubt into the viability of the ciste; just how successful a business it can be. But alas, I fear this may never happen and under HIE, we will continue to read article after article about continued failings, not engaging with the local community and the eventual return of the ski area to mother nature.

  2. Excellent contribution from Alan. Every point should be studied in detail by the Scottish Goverment and the Community Trust, both of whom should totally disregard any advice they receive from HIE. No other public body in the UK can be less trusted than HIE when it comes to advising their political superiors. Alan’s options should include replacing the Day Lodge Poma with a chairlift as stage one in developing Cas/Ciste connectivity for skiers and snowboarders, mountain bikers and walkers.

    1. Hi Jo, that would make sense if could be done cheaply but we have no idea of cost and HIE is keeping information about extent of repairs needed secret.

  3. Generally I think it fair to say recently HIE have shown themselves more interested in ” grand schemes ” that grab headlines, and “saving face” when mistakes occur , than their true remit and purpose.
    Communities across the highlands exist where simple problems and small local enterprises always lack investment cash. Many small employers generate little fiscal return, but “pump priming”loans for new equipment could make an enormous difference. The additional question of how to meet needs of recreational visitors, hoping to park near Mountain walks, to linger with their wallets in communities, to admire the tranquility away from congested camping areas and other “facilities”, this remains a real issue. Shooting public largess into some great cash sink hole, incorrectly maintained for years, which no commercial operator would ever touch ? The call to refocus the money where it is deserved is overdue?
    Perhaps we should be asking how many other part time roles on other Management groups some of these HIE committee members have. The job needs commitment and single minded dedication. Does a master list exist somewhere of well regarded suitable people to be approached whenever a vacancy arises? Who selects them? Some appointees can have far too many concerns already to have interest in dealing with small matters far from home….hence the broad brush annual money go round to a few headline projects to get the budget allocated in time each year. Scottish Ministers could look to the management of well funded, largely volunteer staffed National park service in New Zealand or Australia for inspiration.

  4. Perhaps there are grounds for some encouragement as we learn that “Fergus Ewing is following developments closely” but this sorry saga has been going on for years. Surely intervention at the highest level in the Scottish Government is urgently needed together with an inquiry into the Natural Retreats management fees fiasco and HIE mismanagement.
    The suggestion of campervan hook ups at the Ciste car park is a great idea. A year-round alternative venue and competition for the over-priced Glenmore campsite which can fill up during peak periods in the summer would surely attract more visitors and benefit the local economy.
    I agree with Dave Morris who says that “No other public body in the UK can be less trusted than HIE” although SNH run them a close second as evidenced by their complete lack of oversight on the Glen Etive Hydro Fiasco.

  5. I’m glad somebody has been paying attention to comments I made at the first AGCT meeting..most notably the fact that a zip wire which will ice up like the existing ski tows, & then shed the ice onto skiers below. Unless you de-ice or remove the wire in winter. Then the whole mess of the suggested uplifts, again I suggested the hybrid chair/gondola systems which are built & are up & running in numerous resorts around the world & would suit CG perfectly, with mid station stop. The camping hook ups & micro pods around the old car park is a no brainer as they say, proof is in the existing lower financed ski centres in Scotland adapting & making very good use of their brains, & WITHOUT any consultants (to my knowledge)
    Shame that the £80,000 consultants report is worthless & it looks like they scan read the WH forum & scattered the ideas across the map in a random fashion (again another comment I made at the same meeting). Its very unfortunate that HIE loves consultants & ignores those who actually deal in facts & use the land in question. Much like Highland Council who in the last six years has spent circa £37 million on consultants.

  6. I agree with you, Alan, that “an open-minded, unblinkered look at all of the possibilities on CairnGorm is a prerequisite of future success”, however I also believe that options of scaling down infrastructure and future public money spend on CairnGorm must be given equal consideration.
    We’ve seen in excess of £25M of public money squandered on CairnGorm and we need to ask the question what return could there have been on investing a fraction of this money throughout the Strathspey area. For example we have been waiting decades for the Scottish Government to invest the finance in building a crossing of the A95 for the Strathspey Steam Railway – a mere £2M-£3M spend at most. The availability of a day trip on the Steam Railway enabling visitors based in Aviemore and Grantown on Spey to visit these communities on the Steam Railway would be a huge boost to tourism and a great return on the investment.
    Additionally our Government and its agencies do not seem to be aware of the potential of wildlife and nature tourism and there seems to be too much focus on building infrastructure to turn CairnGorm into some sort of Disneyland, instead of letting nature back. I recommend people read or re-read and give real thought to Cameron McNeish’s excellent article in Walk Highlands on this subject. – see https://www.walkhighlands.co.uk/news/the-long-walk-in/0019243/.

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