YHA Ltd 2016 Year in Review

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YHA Ltd 2016 Year in Review YHA AUSTRALIA YEAR IN REVIEW 2O16 YHA 2016 YinR_AW.indd 1 30/3/17 3:54 pm CONTENTS BACKGROUND TO YHA AUSTRALIA 1 GOVERNANCE 20 INTRODUCTION 2 HUMAN RESOURCES 22 2016 IN SUMMARY 3 STAFF STRUCTURE 24 FIVE YEAR COMPARISON 5 STRATEGIC PLANNING 26 ACCOMMODATION 6 OUTLOOK 27 DEVELOPMENT 11 RELATIONSHIPS 29 DIGITAL 12 YHA LTD HOSTELS 30 MARKETING 13 FINANCIAL SUMMARY 33 TRAVEL & TOURS 16 YHA LTD ANNUAL REPORT FOR THE STRUCTURE 17 YEAR ENDED 31 DECEMBER 2016 34 CORPORATE AFFAIRS 18 COVER: THE FAÇADE AT MELBOURNE DISCOVERY SEEKERS AT CENTRAL YHA HAD A FACELIFT MISSION BEACH, QUEENSLAND YHA 2016 YinR_AW.indd 2 30/3/17 3:54 pm BACKGROUND TO YHA AUSTRALIA MISSION CORE VALUES To provide opportunity for all, but especially young people, for education by personal development, fostering friendship and bringing about a better understanding of Environmentally Safe and Honest and others and the world around them. friendly reliable trustworthy Value Loyalty Experience for money YHA LTD THE HOUSE AND TREE SYMBOL • Is a company limited by guarantee under the The house and tree originates from the first Corporations Act (2001). Hostelling International signs in Europe in 1934. • Is a not-for-profit organisation. The three messages used in the green Australian • Retains and reinvests all surpluses. logo are the tree representing the environment, • Trades as YHA Australia. the house representing shelter and the open door • Provides low cost accommodation for individual representing just that, a welcoming open door. and group YHA members from the ACT, NSW, NT, Queensland, South Australia and Victoria, other YHA IN AUSTRALIA Australian states and overseas. The first youth hostel was established in Germany in • Has 35,262 individual and group members in the 1909. In 1932 Hostelling International (HI) was formed ACT, NSW, the NT, Queensland, South Australia and now has member associations in 90 countries that and Victoria. are operating more than 4,000 hostels. There are 77 • Operates YHA Travel & Tours. YHA hostels in Australia, including 57 in the ACT, • Acts as co-ordinator for other providers of hostel NT, NSW, Queensland, South Australia and Victoria. accommodation operating as YHA associate hostels. The first YHA hostel in Australia was opened in 1939 • Has no age limits, either minimum or maximum, in Warrandyte in Victoria. YHA hostels provide low cost on membership or hostel usage. short term accommodation for travellers. YHA hostels • Has affiliated regional activity groups which organise can be used by people, regardless of age, who are social and outdoor activity programs. members of any of the Youth Hostels Associations • Is the Australian member organisation of Hostelling throughout the world. International. CORPORATE OBJECTIVES A culture of Product and Industry Governance sustainability service excellence leadership Effective, responsive and Improve environmental Consistently high quality Promoting a high efficient structure sustainability of YHA’s and standards of YHA quality and safe A culture that balances buildings accommodation accommodation sector risks and opportunities Socially responsible Everything we do is Advocacy on behalf of Transparency and customer-focused Open to, and accepting the backpacker sector accountability in of other cultures A motivated workforce Alliances and strategic everything we do that is innovative, friendly Financial sustainability partnerships growing the and welcoming to support growth backpacker industry Efficient and consistent network 1 YHA 2016 YinR_AW.indd 3 30/3/17 3:54 pm INTRODUCTION FINANCE There was a stronger financial result in 2016 than in 2015. This was primarily due to increased occupancy in the hostel network, particularly in Sydney. Overall, on an operating turnover of $45.3 million we generated a surplus of $2 million, and accumulated significant funds to be used for hostel acquisition and development. HOSTEL DEVELOPMENT During the year, we commenced construction on an extension at Byron Bay YHA in NSW that is due to open in late 2017. We also purchased Newcastle Beach YHA in NSW (a former Associate hostel) and undertook a refurbishment of this property. In Surfers Paradise in L TO R: ROB MCGUIRK (CHAIR) AND JULIAN LEDGER (CEO) Queensland, we purchased a well-located block of land for a future hostel development. YHA’s Sustainable Hostels Fund contributed to the installation of solar power at Sydney Harbour YHA, Dear Members & Friends, the sinking fund for this hostel’s onsite Big Dig For YHA, 2016 was a year of integration, strategic Archaeology Education Centre reached $0.5M for planning and acquisition. We integrated the former interpretation projects, and celebrations marked the national body, Hostelling International Australia (HI-A) 50,000th student participating in a program at the centre. into YHA Ltd, and members of YHA Tasmania voted FUTURE FOCUS to merge into YHA Ltd with effect from 1 January In 2017 we will begin to implement the new Strategic 2017. Negotiations continue with YHA WA, with a Plan; modernise our membership pricing and systems; Memorandum of Understanding entered into with the plan for future network development; improve the quality aim of merging into YHA Ltd in the second half of 2017 and atmosphere of our hostels; further develop our IT subject to voting on by WA members. At the 2016 infrastructure; and nurture partnerships with like-minded AGM we made modifications to the Constitution to assist organisations. with modernising the organisation and providing good governance. Throughout all this, YHA remains proudly a not-for-profit organisation. Our mission of providing the opportunity A National Strategic Planning conference was held in July to young people for education through travel, to bring 2016 in the Barossa Valley in South Australia, resulting about friendships and an understanding of the world has in new Strategic Plan to guide the organisation to 2020. been solid for over 75 years now. We would like to thank YHA Australia was also well represented at a Hostelling all our members, guests, staff, volunteers and industry International conference held in the UK, providing input partners for supporting us and our mission over the into the global organisation. past year. We continued to provide a high quality network of hostels in NSW, Victoria, Queensland, South Australia, NT and the ACT. Our network of 57 hostels generated 1,431,942 overnight stays, with our guests coming from over Julian Ledger Rob McGuirk 180 countries. CEO Chair We currently have 35,262 individual and group members, and a further 19,909 international visitors who joined while travelling in Australia. During the year we undertook a creative refresh to revitalise YHA’s brand and appeal to more, young ‘Discovery Seekers’. 2 YHA 2016 YinR_AW.indd 4 30/3/17 3:54 pm 2016 IN SUMMARY HIGHLIGHTS YHA ACCOMMODATION Successful integration of the former national body, An average of 3,918 people accommodated each night Hostelling International Australia (HI-A) into YHA Ltd, Increase in total number of guests to 1,434,136 which trades as YHA Australia and is now the Australian overnight stays member of the International Youth Hostel Federation (trading as Hostelling International) Partnership with a Working Holiday agency to have a presence in key hostels (Sydney Central, Melbourne National Strategic Planning conference held in the Metro, Brisbane City and Cairns Central YHAs) to provide Barossa Valley – resulting in a new Strategic Plan to 2020 onsite services, such as job-seeking assistance, Hostel Managers’ Conference held in Cairns – with to working holiday makers Backpacker & Adventure Tourism Industry Forum, open Small Hostels Development Fund was fully expended in to wider industry, also hosted by YHA the year with various projects including $172K spent on Acquisition and refurbishment of Newcastle Beach YHA renovations at Port Elliot YHA (SA) (NSW) – formerly a YHA Associate hostel MARKETING AND DIGITAL Purchase of well-located land in Surfers Paradise (QLD) Creative refresh undertaken to revitalise YHA’s brand and for a future hostel appeal to young ‘Discovery Seekers’ Construction commenced for expansion of Byron Bay Development of sales of Australian travel experiences to YHA (NSW) on adjacent land hostel guests through YHA Travel & Tours web-based system Representations to State and Federal governments on Investment in yha.com.au and digital technology to enable issues of concern to travellers, including short-term letting stronger communication with members of residential accommodation, and ‘backpacker tax’ Fully responsive website and two travel apps launched Positive media coverage in print, broadcast and online RAMBUTAN TOWNSVILLE YHA JOINED THE NETWORK 3 YHA 2016 YinR_AW.indd 5 30/3/17 3:54 pm FINANCE GOVERNANCE AND ADMINISTRATION Total operating turnover of $45.3M ($42.9M in 2015) The Board operated with nine volunteer Directors and three sub committees, with meetings taking place in the Earnings before interest, taxation, depreciation and Barossa Valley, Canberra, Melbourne, and Sydney amortisation (EBITDA) of $9.8M ($9.9M in 2015) after adjusting for HI-A contribution. Changes to the Constitution enacted following approval by members at the 2016 AGM, including a new By-law Operating surplus of $2M ($0.98M in 2015) on Director nomination and election Members in YHA Tasmania voted to merge with YHA Ltd, effective 1 January 2017 A Memorandum of Understanding to merge YHA WA into YHA Ltd was entered into, subject to voting on by WA members (scheduled for June 2017, with potential
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