As China ushers in the new year in the winter chill, the country is once again abuzz with a booming ice and snow tourism craze. Famous attractions in northern China, such as the Harbin Ice and Snow World in Heilongjiang province and the Chongli ski resorts in Hebei province, continue to pull crowds from all over the country, while southern cities like Hangzhou and Chengdu have ramped up their man-made snow attractions, allowing local residents to enjoy winter sports without having to travel far.

China's ice and snow economy has witnessed explosive growth in recent years. According to a report issued by the General Administration of Sport of China, the country's ice and snow industry shot up from 364.7 billion yuan ($52.5 billion) in 2016 to 980 billion yuan in 2024.

Thanks to favorable policies, increased market demand and technological progress, the ice and snow economy has become an important driver for stimulating consumption and advancing the country's high-quality development. The success of the Beijing Winter Olympic Games in 2022 ignited the nation's passion for winter sports. The government's target of 300 million people participating in such sports was a major boost for the industry. In 2024, the central government set another target: by 2030 the ice and snow economy should reach 1.5 trillion yuan.

Guided by these objectives, local governments have rolled out a slew of supporting policies to spur consumption. Some adopted measures to back the construction of sports venues, while others offered subsidies to consumers. For example, railway stations and trains in some northern cities launched "ski equipment-friendly" services, allowing passengers with ski gear to board via dedicated access lanes and store their equipment in designated areas on the trains.

At the same time, the upgrading of household consumption patterns in China has helped lay a solid foundation for the vigorous growth of ice and snow-related sports and entertainment activities. As demand for leisure, recreation and physical fitness becomes increasingly diverse, these sports have moved beyond a niche pursuit to become a pastime enjoyed by a much broader population.

Technological progress has also supported the industry's growth. The widespread use of indoor snow-making and simulated skiing machines has broken the geographical and seasonal constraints of winter sports. Data from the General Administration of Sport of China shows that almost 70 percent of the 79 indoor ski resorts in China are located in the southern parts of the country, further expanding the consumer base for ice and snow spending in these areas.

The vibrant ice and snow activities have had a ripple effect on other industries as well. Not only have related businesses such as catering, hotel and transportation gained traction, but other sectors, including equipment manufacturers and event organizers have also benefited. By 2024, China had developed an ice and snow manufacturing system covering 15 categories of sports equipment. Domestically made products — including carbon fiber skis and other homegrown gear — have entered the market and some are also being exported.

The boom has also created a large number of job opportunities, ranging from ski instructors and service staff to vendors and manufacturing workers, making the sector an important channel for increasing employment and enhancing incomes.

But the rapid development cannot obscure the fact that the ice and snow sector still faces numerous bottlenecks that hinder its sustained expansion. Costs stand out as a major challenge. Most outdoor ski resorts only operate in winter. This short-term seasonality makes it difficult for some businesses to recover costs. Though indoor ski resorts are able to do business year-round, they also have steep construction and operational costs, including the heavy investments required for snow-making and temperature control. Moreover, many people still associate ice and snow sports with a luxury lifestyle rather than a viable leisure option.

To address these problems, indoor ski resorts can try reducing energy consumption by adopting technologies such as photovoltaic power supply and water-circulating snow-making systems. Outdoor ski resorts could develop summer projects like camping and mountain biking businesses, thus extending the operations beyond the winter months and boosting revenue.

Costs could be further lowered through government subsidies and tax reduction for resorts that adopt energy-saving technologies and remain open for business not only during winter months but other seasons as well. Local governments could help in developing rental centers to share snow-making and grooming equipment, helping small operators avoid heavy investments. Consumer vouchers could further lower ticket prices and attract more visitors.

At the same time, the sector needs stronger top-level design. Industrial policies should be refined, financial support for research and development increased and efforts to improve core technologies in equipment manufacturing intensified. Efforts should be made to establish a system of national standards for the construction, operation and safety of winter sports and leisure venues.

As an integral part of service consumption, the ice and snow economy holds enormous potential for expanding domestic demand. The next step is to enable all parties to make concerted efforts, continuously drive innovation and upgrading in winter sports events, equipment manufacturing and tourism, and transform strong momentum into sustained growth. This will help make the ice and snow sector a truly outstanding highlight in advancing China's high-quality development.

The author is an economist and the founding director of the China Institute of New Economy.

The views don't necessarily reflect those of China Daily.