Victoria’s beloved alpine resorts are teetering on the edge of financial collapse, kept alive only by a multimillion-dollar taxpayer lifeline. But here’s where it gets controversial: the state government is now pushing to privatize two of these struggling mountains, Mount Baw Baw and Lake Mountain, after decades of public funding failures. Could this be the solution, or is it a risky gamble with the future of these iconic destinations?**
Despite the alpine sector injecting a staggering $2.14 billion into Victoria’s economy each year, the organization managing the state’s six snow resorts, Alpine Resorts Victoria (ARV), is drowning in red ink. Established in 2022 to streamline operations and boost sustainability, ARV has instead become reliant on a Treasury ‘letter of comfort’—essentially a financial crutch—to avoid collapse. According to its annual report, a $13 million taxpayer subsidy was needed just to achieve a meager $4.39 million surplus. Without this bailout, ARV would have faced a crippling deficit.
And this is the part most people miss: While resorts like Mount Buller, Falls Creek, and Mount Hotham thrive under private management, Baw Baw and Lake Mountain have been bleeding public funds for over 20 years. ARV argues that private operators might be ‘better positioned’ to turn things around, citing their efficiency and capital for investment. But is handing over these resorts to private hands the right move, or are we sacrificing public access for profit?
The financial strain is already taking its toll. Lake Mountain slashed its operating days during the 2024 winter season, closing two days a week outside school holidays. Even more heartbreaking, the only childcare center in Falls Creek—serving the town’s tiny permanent population—was shut down due to budget shortfalls. These cuts raise a critical question: What does privatization mean for the average Victorian who relies on these resorts for recreation and livelihood?
Opposition Leader Jess Wilson didn’t hold back, accusing the Allan government of gross mismanagement. ‘Labor cannot manage money, and Victorians are paying the price,’ she declared. Meanwhile, the government insists privatization will attract more visitors to the struggling resorts. But with the current letter of financial support set to expire in April, time is running out.
Here’s the thought-provoking question we leave you with: Is privatization the only way to save Victoria’s alpine resorts, or are we selling off our natural treasures at the expense of public access and community needs? Let us know your thoughts in the comments below. The future of these snow-covered icons hangs in the balance, and your voice matters.
