Mountain railway companies form the economic backbone of many tourist regions. Decreasing numbers of visitors combined with very high investment requirements are causing problems for many railways; concentrating on promising business is their only way out. The Engadin St. Moritz Mountains mountain railways must also focus their offerings. Gartmann.biz supports the company in communication and public affairs relating to the revised corporate strategy.
Engadin St. Moritz Mountains AG experienced fewer first-time entries and a loss in the 2013/2014 financial year. With a revised 2030 Strategy, the company is adapting to new customer needs and focusing on profitable business in order to be able to maintain its infrastructure assets on its own. Together with Corvatsch AG, a regional connection between Corviglia-Corvatsch is being sought.
A lack of overnight guests and changeable weather conditions brought Engadin St. Moritz Mountains AG a difficult financial year 2013/2014. First-time arrivals fell by 3.8 percent and traffic revenue by 2.4 percent. Although cash flow rose by 4.5 percent, the result was a loss of 306,000 francs. Shareholders must forego a dividend for another year.
At Monday's general meeting on Marguns, Chairman of the Board of Directors Luis Wieser underlined the importance of “warm beds” and called on the public and politicians to support hotel projects and actively managed second homes. The Upper Engadine should now not persist in sacrificing, but rather must adapt to new market conditions, concentrate its efforts and invest in a targeted manner.
The consumption and leisure behavior of holiday and excursion guests from all over the world has changed permanently in recent years. Engadin St. Moritz Mountains is therefore entering the next decade with a revised corporate strategy. It is based on the Upper Engadin mountain railway strategy in the “2030 Agenda” of the Maloja region.
Ensuring profitability
The company's “Strategy 2030” provides for a concentration on the three business areas Corviglia, Muottas Muragl and Diavolezza. Investments in maintaining and upgrading the existing infrastructure as well as a targeted increase in attractiveness, particularly for tourists in the premium segment, are intended to secure the profitability of the three mountains in the long term.
A revised concession application for the replacement of the signal path with a new orbit with ten-person gondolas will be submitted in April. Preparatory work should begin promptly and the railway should be put into operation in winter 2017/2018.
In view of the 2017 World Ski Championships, the two chairlifts located on the race track, Salastrains and Alp Giop will be modernized. The new Lej Alv natural reservoir, which is under construction, will be put into operation in autumn 2015.
Together with Corvatsch AG and in line with the Upper Engadin Mountain Railway Strategy 2030 in the Maloja region, the project of a regional connection between Corviglia and Corvatsch is being promoted. The optimal development and connection of snow sports areas meets the clearly expressed needs of national and international guests of winter sports areas such as St. Moritz.
Corviglia, Diavolezza and Muottas Muragl
In order to attract new, additional guest segments all year round, St. Moritz and Corviglia must become internationally attractive tourist destinations in the medium term. The vision of “Winter Olympus” includes two prominent buildings in the village center and on Corviglia, in which the history of winter tourism and the 1928 and 1948 Winter Olympics as well as winter sports themselves can be experienced.
Together with the municipality of St. Moritz, project planning is now to be pushed forward which will make it possible to finance the vision through companies, private individuals and patrons.
The Diavolezza is at the center of the joint “Bernina Glaciers” strategy of Pontresina and Valposchiavo. In the center of the Bernina massif, guests can experience eternal ice and snow up close on the Diavolezza. The offer at Diavolezza is intended to appeal to tour guests in the premium segment.
They bring overnight stays and retail sales to the valleys and are actively motivated to visit the Engadin again as holiday guests.
The Muottas Muragl panoramic mountain has positioned itself well since the renovation of the hotel and catering offerings and is in the black in the overall accounts. Hikers and connoisseurs appreciate the mountain as a quiet destination with a high-quality range of restaurants.
Financial and cooperation strategy
The financial strategy is to finance the maintenance of infrastructure in railways, runways and snow-making as well as restaurants and hotels on our own. The necessary self-generated funds can only be generated if unprofitable business is ended in the long term.
A solution must therefore be found promptly to finance the recurring losses of millions of euros from Lagalb. If this does not work, Lagalb must be shut down after the 2015/2016 winter season.
Engadin St. Moritz Mountains AG is an active and leading provider of tourism services in the Upper Engadin. Politicians, tourism organizations and tourism service providers can only drive the development of the region forward together. An essential pillar of Engadin St. Moritz Mountains' corporate strategy 2030 is therefore a cooperation strategy in the region and a voluntary commitment to transparent information and dialogue with stakeholders and the population of the region.
Leading provider of mountain experiences
Engadin St. Moritz Mountains AG operates 24 cable cars and almost 200 kilometers of groomed slopes, hiking and sledding trails on Corviglia (St. Moritz-Celerina), Muottas Muragl (Samedan) and Diavolezza-Lagalb (Pontresina Bernina Pass).
Its high-quality gastronomic offerings in eight establishments of various types and its three hotels with around 500 beds on the mountain and in the valley also make Engadin St. Moritz Mountains AG one of the most important hosts in the Upper Engadin.
With an annual turnover of over 52 million francs and around 450 employees in winter, it is one of the most important employers, value creation factors and tourism service providers in the canton of Grisons. The year-round offer is aimed at active, sports-loving guests and locals in the region as well as excursion guests from all over the world. Engadin St. Moritz Mountains has set itself the goal of becoming one of the world's leading providers of mountain experiences.
gartmann.biz supervises the implementation of the company's 2030 corporate strategy in communication and public affairs.