Gondola plans can lead to “cannibalisation” – news Vestland

At Skei in Jølster in Vestland a few days ago: In the hot summer weather, people have moved into a conference hall to hear about the plans for a large-scale gondola project. The initiators hope to build the track up to the 1,500 meter high Tverrfjellet – which will provide a view of the mighty Jostedalsbreen. The cost is estimated to be somewhere between NOK 300 and 500 million. – It will be a lighthouse and an international landmark, says one of the initiators, Steinar Dvergsdal. The project is one of several gondola projects that may come in the next few years. In the tourism village of Flåm in Aurland municipality, there are concrete plans to build a gondola lift. Similar plans exist in Narvik, Sula and Sauda, ​​although the State Administrator recently said no to parts of the project. Also in Odda, the developers are working to adjust the plans after the State Administrator said no. From before there were gondolas in Loen, Åndalsnes, Voss and Tromsø, among others. In Odda, there are plans for a gondola from the center and up the 1,400 meters to Rossnos. Illustration: REIULF RAMSTAD ARCHITECTS Saturation point For several of the projects, Menon Economics has, on assignment, prepared a so-called ripple effect analysis. Both in Jølster and in Sula, the company believes that gondolas will create growth and more new jobs. Now, however, Erik Jakobsen, partner and chairman of the board, says that there is a limit to how many new projects should see the light of day. – Somewhere there is a saturation point. Erik Jakobsen is a partner and chairman of Menon Economics Photo: Menon Economics Daily manager of Loen Skylift, Richard Grov, already raised the question three years ago, at the start of the pandemic. In an interview with Teknisk Ukeblad, he warned against over-establishment. – If there are too many projects and too many protests, it will create negativity that can affect everyone. No one is fired with a reckless investment. To news today, he says that he does not want to comment further and points out that “I neither can nor want to comment on a case that is biased against any new establishments within Loen Skylift’s area of ​​operation”. The daily manager of Loen Skylift has previously warned against over-establishing the gondola project. Today, he does not want to elaborate on the report. Photo: Oddmund Reisæter Haugen / news – It is obvious that he has a point, says Erik Jakobsen in Menon. He says that there is still room to build more gondola projects, but that at some point it could have negative consequences in a couple of important areas: If there are too many projects in relation to demand, it could lead to increased competition and reduced traffic for each of them. If there is an increase in negative focus linked to nature interventions, so that gondolas and cable cars in general get a worse reputation, then it will also happen to everyone. Tougher competition He still believes that it is difficult to calculate when the so-called “cannibalism” effect occurs, that is to say that the various projects take away from each other’s customer base – among other things because the gondolas themselves will attract more tourists. – But the closer the gondolas are, and the more similar the product they have, the stronger the “cannibalism effect” will be. Should, for example, both the project in Jølster and Flåm be realised, in addition to Loen which already exists, there will be three gondolas in the Sogn og Fjordane area. – There will obviously be a competition between the three, but at the same time it can increase the attraction value of the region as a whole. This is what the view looks like from the top of Tverrfjellet, if the gondola project in Jølster is realised. Photo: Torje Bjellaas / news Sigbjørn L. Tveteraas is professor of industrial economics at the University of Stavanger, and has studied economics in tourism. He agrees that there is a saturation point in terms of how many gondolas are economically profitable, and that we are now starting to get into a terrain “where we are fighting for market shares”. – I would be more critical of profitability analyzes of the latest projects, compared to the first ones. He bases this on the fact that the latest to establish themselves must attract customers from the existing offers, and thus must offer lower prices or packages that give more value for money. That will again affect the profitability of the project, he believes. At the top station of the gondola at Rundehornet on Sulafjellet, 725 meters above sea level, there will be a restaurant and terraces, if the project becomes a reality. Photo: Snøhetta/ Sula gondola Great faith in success In Jølster, the company behind the project has great faith in profitability anyway. Jostedalsbreen AS predicts that there will be over 100,000 visitors a year and 90 permanent jobs for the region. Steinar Dvergsdal says the offer will give completely new groups access to spectacular nature experiences. But the case has not yet been decided. Ida Juklestad from Jølster, who was present at the public meeting, says she will continue to fight against the plans. She and several others have recently set up a Facebook group to show resistance. – When I drive to Skei, I look straight at Tverrfjellet, and it is one of the most beautiful things. Visually speaking, they say that this will not be ugly, but I am afraid that this will destroy it. Ida Juklestad recently created a group on Facebook to show opposition to the gondola plans in Jølster. Photo: Artur do Carmo / news



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