Gains from horizontal collaboration among ski areas

Ski areas are known to expand by linking their lifts to neighbouring systems. Based on data from approximately 250 winter sport destinations in Austria, pooled over the years 1998-2014, this study explores the effects of such horizontal collaboration on the number of overnights stays in the area. A difference-in-differences (DID) approach combined with propensity score matching shows that new lift-linkages or expansions lead to a consolidation in the number of overnight stays at a level 12 per cent higher than before the introduction of the lift-link. However, there is a certain degree of heterogeneity in the causal effects. Satellite ski areas, remote villages and those who combine lift-linking with new connecting slopes benefit the most. More recent lift-linkages seem to lead to smaller gains than those established in the early years.