PHOTO: PAUL CHARMAN
NEWS that on Sunday the Chateau Tongariro will be closing “for good” comes as a double whammy for Ruapehu tourism operators, still reeling after the announcement that Whakapapa and Turoa ski fields are effectively broke.
In October, Ruapehu Alpine Lifts (RAL), which owns Whakapapa and Turoa ski fields, went into voluntary administration, with debts totalling $40 million.
Despite discussions with life ski pass holders and Ruapehu businesses, many of whom have offered to partially crowd-fund these debts, little information has been forthcoming on whether a deal can be put together to save them.
KAH New Zealand, the operator of the Chateau, has been reluctant to foot the bill for earthquake strengthening.
As part of its due diligence in preparing to renew the lease, KAH reportedly had specialists conduct site and seismic assessments, which were to be part of plans to renovate the building and surrounding infrastructure. RNZ reported the most recent seismic assessment found, “that underground shifts over time meant some of the hotel infrastructure no longer met current safety standards”.
Sam Clarkson, the owner of the Skotel, which is the other major accommodation venue at Whakapapa Village, said uncertainty over the fate of the ski fields wouldn’t have given the Chateau owners much confidence to keep going.
“I know they are blaming the need for earthquake strengthening but that could be just an excuse. Statements to the media from KHA have been vague. What we really need is a comprehensive engineer’s report to determine the state of the building and how much it would cost to repair,” Sam said.
Little information on the future of Whakapapa and Turoa ski fields has been forthcoming from Price Waterhouse Coopers (PwC), which is now in charge of their daily running, or the Ministry of Business, Innovation and Employment (MBIE), which has injected money to keep them going over summer.
PwC’s senior communications manager, Louise Poppelwell, said only that work was continuing on developing a plan to be put to creditors of RAL, and this was expected to result in a watershed meeting that will be called no later than May 7.
On January 19, King Country News asked Louise if she could tell us who RAL’s main creditors were and whether there had been any offers to buy the Ruapehu ski fields from within New Zealand. We are awaiting a reply.
KHA, which has leased the site the building stands upon from the Department of Conservation (DOC) since 1990 has apparently been watching all this with concern. The Chateau’s 30-year lease agreement with DoC expired in 2020 but the building’s owners had negotiated only short-term extensions since then.
Ruapehu Mayor Weston Kirton said the news on Tuesday that the Chateau would close on Sunday had come as a bombshell, “and we’re really gutted here at the council”.
“We had a bit of a hint last week through the media that things were not going well; they were not taking bookings. Then we got a call on Tuesday to tell us it would close in just a few days.”
Weston said since being built in 1929, the Chateau had many ups and downs and had been put to various uses, but these always came back to being a venue for accommodation.
He would be lobbying hard for Central Government to keep it open. “I am not sure where ownership will end up, possibly to be worked out between DOC and iwi.”
Weston added that people in the Ruapehu district had tremendous affection for the Chateau. He had attended 21st birthdays and weddings there, “and you kind of save up to go there for a nice meal.”
“My immediate challenge will be to work with various agencies to try to see that the 36 staff are looked after when they lose their jobs. “
DOC communications adviser Steve Brightwell said a managed transition period would follow the closure of the Chateau on Sunday.
“The iconic, category 1 listed heritage building sits upon land which is in underlying Crown ownership for which the Department of Conservation is responsible. Technically the building is an improvement.
“Until yesterday, there was an active lease renewal negotiation under way with KAH New Zealand. It is too soon for us to have considered or explored any other options at this stage,” Steve said.
He could not provide any clarification on the likely cost of earthquake strengthening.
“We are working productively with KAH and our iwi partners to manage a smooth transfer from them to us. There are lots of things to work through, so it will be some time before we are in a position to say what the long-term future of the building will be.”
