Cairngorm Mountain – further evidence of HIE’s unsustainable business strategy

July 20, 2020 Alan Brattey 7 comments

It’s a well documented fact that the CairnGorm Mountain Business Strategy which has the Funicular Railway at its centre has been a demonstrable failure. The principle source of income has been the sale of tickets, summer and winter, to use the funicular. The number of passengers carried has never been anywhere near the forecast levels of 200,000 skier days and 165,000 tourist passengers each year. Furthermore, the evidence shows that the numbers actually carried have been falling, in recent years, while the number of tourists, coming to the Strathspey area, has been rising.

As a consequence, the mountain business has been chronically short of the funds required for survival, far less to maintain the assets.  Highlands and Islands Enterprise intervened in 2008 when they took the business into public ownership to prevent its liquidation. The ongoing failure to maintain the assets then led HIE to providing their incoming tenant with £1.7m in 2014. According to the recently published Audit Scotland Report: HIE committed to investing £1.7m in the resort as part of the deal to transfer Cairngorm Mountain Ltd to Natural Assets Investment Ltd. The investment was intended to provide £0.9m to return infrastructure and equipment to a satisfactory condition and £0.8m for enhancements to the ski lifts.

That publicly provided funding would not have been required if maintenance had been kept up to date. The evidence shows, quite conclusively, that the income has never been close to sufficient to make the mountain business sustainable.

 

 

Further Evidence 

In March 2004, a planning application for Cairngorm Mountain was called-in by the National Park Authority. It related to: ‘’ Landscape Proposals for Cairngorm Mountain Carpark. Incorporating dry stone dyking, re-modelling slopes, revisiting drainage arrangements and Artworks. The proposal was to enhance the appearance of the perimeter of the upper Cas car park  by the: ‘’amelioration of the straight contours within the car park, the regular slopes of the upper and lower carparks being reshaped to less uniform angles by exaggerating the existing curves in the car park. There was also to be the addition of heather, juniper and blae berries to replace the current semi-improved grassland of the banks which are untypical of the surrounding mountain environment.

The planning application was subsequently approved and the grant funded work was then completed, at considerable cost.

How does it look today?

 

The waterfall cascades…..overgrown, neglected and with carpark debris at the bottom.

A wall at the side of a path which leads to the top of the waterfalls. It’s in an obvious state of collapse.

A stonebuilt stairway…..overgrowing and unkempt

Collapsed dyking adjacent to the stairway.

Coping stones have fallen off and the absence of any maintenance is clear as are the growing weeds.

Collapsing Dyking

 

It clear, from just a few pictures, that this is another area on Cairn Gorm that has and continues to be, completely unmaintained.

It’s further evidence, if any is required, that this business has been very chronically short of funds over the period of the last 2 decades.

Conclusion

With the funicular centred business strategy having led to almost complete failure [in the real world, this business would long since have ceased to exist] then how will repairing the dysfunctional and inefficient funicular, that has been increasing forsaken by customers, lead to a different outcome in the future?

 

What should happen now

1.The Scottish Government should intervene and remove HIE from all operational involvement at CairnGorm.

2. Forest and Land Scotland should take over control and be responsible of the operation of the business as well as the development of a sustainable business strategy.

3. HIE should pay the costs involved in resolving all the dilapidations which have occurred under their mismanagement.

4. Maintenance of the above ‘enhancement’ features could be added to the list of projects that are to be funded by mandatory parking charges.

7 Comments on “Cairngorm Mountain – further evidence of HIE’s unsustainable business strategy

  1. You are far to generous to suggest that whatever papers HIE put forward was a business plan….nothing in the world of business resembles their incoherence.

  2. I admire your optimism, especially with regards to (4). “to be funded by mandatory parking charges”. Unfortunately CMSL have dropped their car park charges this year, instead relying on voluntary contributions. Oh well! Maybe next year, or sometime in the future?

  3. Whilst I agree totally with your opinions of the ineptitude of the hill management, CNP planning, and the Scottish government, there are 2 very big elephants in the room which really can no longer be ignored. Covid 19 will kill off the tour bus industry for some years to come, depriving the resort of large numbers of summer visitors, however their trips are discounted. The other is climate. A ski resort needs lots of things to be sustainable, but above all it needs snow. Many of us are old enough to remember skiing in October, and in May, with plenty of good days in between. Given that this no longer happens, and things will almost certainly get worse, the best that could be claimed as sustainable is a holding operation on downhill facilities. Without subsidy, there can be no improvement to facilities.

  4. During the period of the previous 7 years, there has been approximately 120k collected in from parking donations and mandatory charges. Even last summer, without the Funicular running, the operator collected 22k from parking charges. I’d defy anyone to identify where ANY of that sum has been committed to the carpark surfaces and drainage since last September. The public are being duped into believing that the money will be committed to a range of ‘fairy story’ projects. I do agree that the likelihood of any money being committed to the Artworks is being very optimistic. However, the dilapidations do have to be addressed……no doubt with yet more unearned funds, from the public purse

  5. As I have said before, many of the problems HIE has experienced in Coire Cas are as a result of expensive planning conditions when the funicular was planned. This was caused by conservationists constantly objecting to the development, despite it being built in an unprotected area. However, I would agree that the carpark has been a mess for many years and needs sorting out.
    The idea of transferring the Cairngorm Estate to Forest and Land Scotland (FLS) is frankly ludicrous. FLS cannot maintain paths in the Glenmore area and they have difficulty managing Loch Morlich at very busy times. For years, larger toilets have been needed for the enormous number of people using the area and nothing has been done to address this issue.
    Recently a skip has been put in the car park, but today it is overflowing.

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