Victoria's alpine resorts are in dire financial straits, with millions of taxpayer dollars propping them up as the state government plans to privatize two loss-making mountains. Despite the sector's annual contribution of $2.14 billion to the state economy, Alpine Resorts Victoria (ARV), the managing body of Victoria's six snow resorts, is on the brink of collapse, relying on a Treasury 'letter of comfort' to stay afloat. The authority is attempting to stem the losses by privatizing operations at Mount Baw Baw and Lake Mountain, which have been operating in the red for decades. The $13 million taxpayer subsidy helped ARV post a modest technical surplus of $4.39 million, but without government intervention, a multimillion-dollar deficit loomed. The report states that ARV's ability to continue as a going concern depends on the Victorian State Government's financial support. The government is seeking 'suitably qualified entities' to take over the commercial and essential services of the resorts, while the land remains state-owned. The current financial strain has led to reduced public access, with Lake Mountain abandoning its seven-day schedule and the only childcare center in Falls Creek facing closure due to financial pressures. The opposition criticizes the government's mismanagement, while a government spokeswoman argues that privatization will attract more visitors. The current letter of financial support is set to expire in April, leaving the future of these resorts uncertain.
