Alpine Resorts Victoria to launch EOI for Lake Mountain and Mt Baw Baw

Alpine Resorts Victoria is preparing to open an expressions of interest process for Lake Mountain and Mt Baw Baw resorts, looking to attract qualified commercial operators interested in taking on a long-term lease over one or both resorts.

This process will enable ARV to explore opportunities and ideas with the private sector to reinvigorate the Lake Mountain and Mt Baw Baw and deliver a vibrant and sustainable future for these resorts. It also has the potential to increase commercial involvement at Lake Mountain and Mt Baw Baw, which is more aligned with how the larger northern resorts operate.

With an altitude of 1,450 metres, Mount Baw Baw has seven lifts across 35 hectares of ski terrain. Lake Mountain sits at 1,433 metres above sea level and has the distinction of being the closest snow resort to Melbourne.

Both resorts are popular and are known for providing many Victorians with their first alpine experience – offering ideal snow locations for young children and families.

They also boast a wide range of alternative nature-based activities, including mountain bike trails and hiking.

Alpine Resorts Victoria Chief Executive Amber Gardner told ABC there was a lot of misinformation being spread about the future of the mountains noting "A lot of people are saying that we're selling the resorts. We're not selling the resorts.

"All of the resorts in Victoria are on Crown land, and everyone who has a property or operates a business in the resorts has a long-term lease with state government."

Lake Mountain and Mt Baw Baw resorts have faced a number of financial challenges over the years, with government entities unable to achieve a commercially viable model for these mountains.

The state government's decision to lease out the resorts to private enterprise comes just two years after it took back control of operations under Alpine Resorts Victoria.

At the time, the resorts were operating at a collective loss of $8 million a year. The ABC has confirmed the deficit has since been reduced to $6 million a year.

Since assuming management of Lake Mountain and Mt Baw Baw, ARV has introduced a series of operational changes that have enhanced the profitability of commercial services in these resorts and also reduced operational costs. This work has delivered positive outcomes so far, reflective of the hard work and commitment of the teams at Mt Baw Baw and Lake Mountain.

While ARV remains committed to delivering further efficiencies at Lake Mountain and Mt Baw Baw, it acknowledges that other commercial entities may be better positioned to run these mountains in a more efficient and effective way. Importantly, other commercial operators may have capacity to invest in the tourism offerings of these destinations to provide them with a vibrant and sustainable future.

The Victorian Government is looking for a company interested in securing a long-term operating lease over the resorts.

It would be similar to what is in place at Victoria's bigger snow resorts - Mount Buller and Falls Creek.

Gardner added "we're looking at someone taking out a lease over one or both of the resorts, and owning the commercial outcomes of that as well.

"We want great ideas to really innovate the offering in those resorts, but they still have to be delivered within a sustainable framework."

In order to test the market and potential opportunities associated with these resorts, ARV will launch an expression of interest (EOI) for Mt Baw Baw and Lake Mountain at the start of December. The EOI will be live until the end of January and will ask suitably qualified entities to propose management solutions for one or both resorts, in their entirety, including the operation of both commercial and essential services on a year-round basis.

The EOI process will be run through the Buying for Victoria platform, and all interested parties are encouraged to register with that platform to receive a notification when the tender is live.

General enquiries around the EOI can be directed to info@alpineresorts.vic.gov.au.

All tender related information will be managed via Buying for Victoria platform in the first week of December 2024.

Image top. Snowboarding Mt Baw Baw; Image below: hiking on Mt Baw Baw trails. Credit: Mt Baw Baw