Snowsports in the Ptarmigan bowl, Cairn Gorm. Photo: Callum Black CC-BY-SA-2.0

Scotland’s busiest ski resort may be put up for sale this year.

The CairnGorm Mountain snowsports centre, along with its controversial funicular railway, is currently owned by Highlands and Islands Enterprise, but the agency is exploring a potential sale.

The development agency built the funicular, which runs up the north side of Britain’s sixth highest mountain, and the ski lifts, restaurant and other facilities at the snowsports centre.

Following protracted financial problems, HIE took over the operator of the ski resort, CairnGorm Mountain Limited, in 2008.

The Scottish Government agency said at the time of the takeover, it did not intend to retain long-term ownership of the business, and would investigate alternative options for its operation and management.

HIE said: “Following two recent outstanding skiing seasons, it is testing the market to gauge interest from potential future operators.”

However, this year’s winter has been more hit and miss, with less reliable snow conditions in what has been a considerably milder winter than that of the previous two years. An event at the Cairn Gorm resort this weekend was cancelled due to thin conditions on the pistes.

The agency has invited expressions of interest from ’suitably experienced potential operators who may wish to consider operating and managing the business in whole or in part’. It said the facilities are not currently for sale, but HIE intends to use information gathered through the market testing exercise before a decision later this year.

Alex Paterson, HIE chief executive, said: “Part of HIE’s role as a development agency is to create assets which will sustain and generate economic growth.

“The funicular railway has certainly succeeded in that aim, helping to underpin the vital tourism sector around Aviemore and the surrounding area for the past decade.

“However, we never seek to be tied in as the long-term owner or operator of assets which we’ve developed.

“With two of Cairngorm’s most successful winter seasons ever under our belt, the time is now right to test the market and see whether there is serious interest out there from others who could effectively run this unique business.

“Based on what we find, we’ll then be in a much stronger position to weigh up all our options and determine next steps.”

Ernst and Young has been appointed to handle potential buyers.

HIE said it is keeping an open mind as to what kind of business model would be most suitable for Cairngorm. “Suggestions from all parties interested in operating and managing the business will be evaluated and used to inform the options appraisal,” it said.

The CairnGorm ski resort has struggled in recent years to maintain profitability, prompting Highland Council and Scottish Natural Heritage to relax restrictions on walkers being allowed off the funicular at the top station to access the summit plateau, in a controversial move in an environmentally sensitive area.

In March 2010 the Scottish Parliament’s public audit committee severely criticised Highlands and Islands Enterprise for lax practices which saw the cost of the funicular spiral to £26.75m. The committee’s report said the scheme had been pushed ahead without accounting for the drop in the number of skiers.

The funicular opened on Christmas Eve in 2001 and replaced an old chairlift system that had operated since the 1960s.

The Scottish Parliament criticised the costs of the funicular. Photo:Peter CC-BY-SA-2.0

Included in the funding of the funicular was a European Union grant of £2.7m, a condition of which was the ‘closed system’ whereby walkers were not allowed outside the Ptarmigan top station and restaurant if they used the funicular.

The stipulation was an attempt to keep down numbers to a manageable level to the internationally important arctic plateau, which is protected by EU laws. The UK Government must repay the grant if the 25-year-long closed system is abandoned.

Three years ago, Ramblers Scotland called for a halt on any further public money for the project.

Director Dave Morris said: “An absolutely huge sum of public money has been spent on this, but when it started its life it was supposed to have been private-sector led. We always held it was built in the wrong place.

“The top station should have been at the lower end of the Ptarmigan Bowl, away from the European designated sites; then they might not have had to have a closed system which prevents people getting out at the top. It might have succeeded then.”

HIE said any tendering for the resort would not begin before June this year.