Winter sector sees profits snowball

Ever since Beijing won the bid to host the 2022 Winter Olympic Games back in 2015, excitement toward snow and ice sports in China has grown exponentially, with skiing and ice skating venues popping up all over the country.

A case in point is Changsha Xiangjiang Happy City, a veritable snow paradise that has witnessed its visitor numbers soar, especially since the summer of 2020.

Since July 1 of that year, the indoor ski venue in Changsha, Hunan province, has welcomed some 400,000 visitors. The center is busiest in summer, welcoming around 2,500 visitors through its doors on a daily basis.

"In the southern part of China, where there is hardly any snow, many people didn't know much about skiing before. Now, more and more people are willing to learn about it and try the sport. In terms of the market, the positioning of indoor ski venues in the region is similar to theme parks," said Liu Yu, a Changsha Xiangjiang Happy City salesperson.

"Many companies in the southern part of China like to organize group ski outings for their staff, while local residents tend to prefer going skiing than other group events," Liu said.

The increasing number of indoor ski venues opening nationwide over the past two years-especially medium and large-scale venues in the southern part of China-has helped drive the growth in participation numbers.

In 2020, 2.69 million people went skiing at indoor ski venues in China, accounting for 21 percent of the total number of people who went skiing during the year. Nationwide, there were 36 indoor ski resorts by the end of 2020, the highest globally, according to an industry research report by the Beijing Ski Association.

"From 2014 to 2020, the number of ski resorts and the quality of facilities have improved significantly. The number of skiers in China has risen from about 10 million in 2014 to more than 20 million in 2020, which is more than a 100 percent surge," said Wu Bin, vice-chairman of the Beijing Ski Association and a distinguished visiting lecturer at Beijing Sport University.

During the three-day New Year's holiday in early January, ice and snow trips were among the most popular activities for Chinese travelers. Nationwide, the booking volumes of hotels near ski resorts, and the booking volumes of admission tickets for ski venues and related ice and snow sightseeing spots all surged over 110 percent compared to the previous season, according to Suzhou-based online travel agency Tongcheng Travel.

Based on average figures over the last five years, the United States, Austria and France were ranked as the countries with the highest number of people who went skiing.

China was ranked eighth, and is considered the only fast-growing ski market in the world, according to the report by the Beijing Ski Association.

"With stagnant international travel due to the COVID-19 pandemic, some Chinese tourists who used to go skiing abroad have shifted their habits and now go skiing at premium ski resorts in China," Wu said.

"Still, some sporadic (virus) cases occurred in several regions in China and the strict pandemic prevention and control measures have brought some uncertainties to the demand of the domestic ski market," he said.

After the Winter Olympics, China will stage two other major global sporting events in 2022-the FISU World University Games in Chengdu and the 19th Asian Games in Hangzhou.

The country's success in controlling COVID-19 has allowed sports industry players and investors to embark a new path for business growth.

Investment in the sports industry is expected to pick up this year, with the national fitness drive envisaged as one of the industry's main focuses over the next few years.

By 2025, total revenue in China's ice and snow sector is expected to reach 1 trillion yuan ($157 billion), with more than 500 million people projected to participate in ice and snow activities, according to a report by the General Administration of Sport.

China currently has more than 8,500 companies involved in ice- and snow-related business, with about 55 percent of those established in the past five years.

Shandong and Hebei provinces have the highest number of registered enterprises, according to Tianyancha, a business information provider.

Both Chinese and foreign retailers are witnessing surging demand for equipment and skiwear makers.

Carving Ski Group, China's largest integrated service provider for ski resorts, now offers services to more than 400 venues nationwide.

In 2020, it was selected as one of a number of companies to receive government funds to support its research and development. Carving Ski has earned a reputation for developing highly efficient and smart snowmakers, and will contribute to the holding of a scientific Beijing Winter Games.

It has developed two styles of snowmaking machines that are now in mass production and in commercial use, with their capabilities matching or exceeded the levels of similar machines produced by foreign brands.

"We are focusing on providing one-stop services for ski resorts. We aim to further build our international competitiveness as a national brand, and contribute to the development of the ice and snow sector in China," said Yu Yang, chief executive officer of Carving Ski.