Business Report 2009

Business Report 2009

Business Report 2009


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ForewordClear strategies and consistent operative implementations are key factors in achievingsuccess. Our mission statement, network strategy, sustainability strategy and organisationalvalues help to map out the path that the Swiss Youth Hostels are pursuing in theirdevelopment.Despite having made enormous advances in recent years, there is no time for us to reston our laurels. We intend to achieve continuous further development so that we can keepfunctioning comprehensively as a ZEWO-certified non-profit organisation. Demand-orientedadaptation of our products is an important component of our strategy, and we areinvesting intensively in existing as well as new locations. This is also why the “new generation”of youth hostels has such great appeal.Of course, we are also concerned with maintaining our tried-and-trusted approach andadhering to the values of our predecessors. During the 2009 anniversary year (100 years ofyouth hostels worldwide, 85 years of youth hostels in Switzerland), we became aware onceagain of just how unique and important our organisation is – especially in the hectic age weare living in – and how it can make an important contribution to society.In 2009, the financial crisis shook the world economy to the core, and the effects were alsoexperienced in the tourism sector. Swiss tourism, for instance, recorded a decline after fiveyears of growth. Overnight stays in the hotel industry fell by 4.7%, while a roughly 9% dropwas noted in surrounding European countries. Despite this difficult environment, the SwissYouth Hostels once again attained a very good result in 2009, even with the Basel St. Albanand Dachsen youth hostels closed for renovations the whole year. It is plainly evident tous that this result did not come about on its own, and was made possible only through theenormous effort of each and every employee. We would like to express our sincere appreciationfor this dedication. A sincere thank you also goes out to our executive board membersfor their enormous volunteer efforts.The Swiss Youth Hostels see sustainability within the larger context of economic, socialand ecological activities. The objective of this “Business Report on the Sustainable Developmentof the Swiss Youth Hostels” is to provide an in-depth look at our efforts andcommitment in the area of sustainability. To meet this objective, we have made some fundamentalchanges to our reporting. For example, the former “Business Report” and “SustainabilityReport” publications have been combined and supplemented with additionalinformation. This is to foster transparency in terms of our contribution to sustainable developmentand to demonstrate the present and future challenges we face.We would like to thank you for your interest in our organisation. Please feel free to contactus at any time if you have any questions.Stephan KurmannPresident SYHs.kurmann@youthhostel.chFredi GmürCEO SYHf.gmuer@youthhostel.chRené DoblerCEO SFSTr.dobler@youthhostel.ch4

Mission statementPromoting responsible and sustainable action is an important objective for the Swiss Youth Hostels. Already back in 1994, the Swiss YouthHostels created a mission statement for balancing its economic, social and ecological activities:Our ethicsWe strive• to promote quality-oriented, socially responsible and environmentallysound tourism for young people and families,• to focus on human relations,• to live up to the idea of partnership at all levels,• to strengthen our image and standing as the most importanttourist organisation for young people and families,• to achieve appropriate business results in order to ensure theongoing existence of our organisation.Our guestsWe bear a special responsibility towards our guests, since travelis of extreme emotional and material importance to them and isassociated with a special need to feel confident, safe and secure.We wish to respond to the many and diverse expectations of ourguests in a creative way. We treat our guests as people who havea zest for life and are enthusiastic, interested, contact-loving andready to take the natural environment and their fellow travellersinto consideration. We wish to respond to such qualities and promotesuch attitudes.Our employeesWe are aware that all the employees of our organisation, which isbased on personal performance and relationships, play a vital roleand we make correspondingly high demands on them. We pursuea progressive employee policy, especially with regard to managementstyle, working conditions, social security, equal opportunities,personal responsibility and career advancement.Our partners and membersWe strive to build true partnerships with all of the people, enterprisesand institutions that are important to us. We consider closepersonal relationships and the mutual setting-out of fair conditionsto be especially meaningful. We seek active co-operation withall of the key tourist organisations both at home and abroad. Wepromote both inter- and intra-organisational co-operation.Our relationship with the general public and the environmentWe are a politically and religiously neutral organisation and assuch active in all areas of the country. We are aware that the localpopulation and the natural environment in the areas in which weoperate are crucially important both to us and to our guests. Wewish to take the interests of the local population into account asmuch as possible, to respect their independence and culture, andto make every effort to minimise our impact on the environment.We operate environmentally friendly youth hostels and leisure activitiesthat are geared to the protection of the countryside.Our servicesOur main aim is the maintenance of value-for-money services. Inspite of that, we wish to respond to increasing quality requirements.We wish to offer a demand-conscious, innovative programme ofservices for our guests which is attractive and offers real alternativeswhen compared to other forms of accommodation – in otherwords: to cultivate simplicity. We attach particular importance totransparent structures, personal management of our hostels and apleasant atmosphere.Our information, advertising and salesWe stick strongly to the principle that performance is the best formof advertising. Nevertheless, we wish to conduct active marketing–marketing that is not loud or aggressive, but has its own style andsoul. The information we provide should always be honest, believableand clear.Our PR workWe wish to communicate our aims and convictions at all times andto keep the general public up to date about developments in ourfield of activities. We wish to maintain close personal relationshipswith the authorities, with both public and private institutions andwith the media, to stand up for improvements in the most importantbasic conditions and to support meaningful leisure activity options.Our relationship to innovation and researchWe wish to consciously promote innovative thought and action atall levels within our organisation, since future opportunities in ourfast-moving world can only be seized through new ideas. We supportpractice-oriented, critical research into tourism and view it asan important vehicle for information allowing us to formulate anintegrated and forward-looking policy for the association.Our commercial viabilityIn spite of our idealistic aims, we aim for commercial activities thatmaximise our commercial viability and thereby ensure the continuedexistence of our enterprise. We strive therefore to generate sufficientrevenue, to maintain adequate liquidity, to build reserves andto foster a sound capital structure. For major investments such asnew construction and renovation projects, however, we are reliantupon financial support from the public purse.6

Network strategyThe network strategy pursued by the Swiss Youth Hostels is aimed at setting up and maintaininga comprehensive network in the attractive tourist areas and destinations of Switzerlandand the Principality of Liechtenstein.The network is divided up into A, B and C locations. The locations are defined not by theyouth hostels themselves, but rather by the destinations in which the hostels operate,what they have to offer and their marketing appeal.A locations: are internationally famous tourist centres.B locations: are very popular national destinations.C locations: include all other locations able to provide for a wide-ranging programme andto ensure a comprehensive network, or they are youth hostels with historic significance.As at 1 May 2010BaselMariasteinDelémontLe BémontSolothurnZofingenBruggBeinwilam SeeDachsenBadenZurichSchaffhausenStein amRheinFällandenRichterswilZugRapperswil-JonaKreuzlingenRomanshornSt.GallenSchaan-VaduzRorschach-SeeLucerneGersauFilzbachLausanneBerneAvenchesFribourgMontreuxChâteau-d‘OexLeissigenSaanen-GstaadLangnau i.E.BönigenBrienzGrindelwaldFieschEngelbergSeelisbergHospentalScuolKlostersDavosSta.MariaValbellaSils i.D.PontresinaSt.MoritzGenevaBellinzonaSionLocarnoLuganoZermattFiginoThe Swiss Youth Hostels (SYH) association is responsible for running the youth hostels.The Swiss Foundation for Social Tourism (SFST), as its partner organisation, owns 26 of thehostels. A further 20 youth hostels are run on a lend/lease basis and 11 as franchise operations.In all, there was a network of 55 youth hostels with a total of 6,119 available beds inSwitzerland in 2009.7

Sustainability strategyThe Swiss Youth Hostels are committed to sustainability. This means that sustainability isan important component of our organisational philosophy when dealing with stakeholdergroups, structuring our products and ensuring environmental protection.We believe that sustainability means taking into account not only social and ethical issues,but also the sensible use of resources.The Swiss Youth Hostels aim to contribute towards achieving, in a lasting way and withinits own sphere, the objectives of sustainable development in accordance with the FederalConstitution and as expressed at the Earth Summit held in Rio de Janeiro in 1992.At the same time, we are aware that the goals of sustainable development cannot beachieved overnight. All decisions are harmonised with the goals of sustainable developmentand examined with respect to their long-term practicality.In attaining its objectives, the Swiss Youth Hostels expect to lead by example and motivateothers throughout the tourism sector.ECONOMYSOCIALECOLOGYOrganisational valuesAs a basis for strategic planning, the executive board of the SwissYouth Hostels has defined our organisational values:Equity capital formation: the level of self-financing should equal 40%.Surplus appropriation: no surpluses may be distributed to themembers.Investment activity: any surplus generated must be reinvested.Risk of investments: the SYH association must be capable of sustainingthe investments of the SFST. Full cost coverage must be ensuredin the long term.Sales growth: sector growth.Pricing: bed price for multi-bed rooms: comparable to the pricelevel of local competitors. Bed price for two-bed rooms: making fulluse of local opportunities.Offering: mainly multi-bed rooms.Market performance quality: multi-bed rooms better than competitors’but minimum requirement in accordance with SFST constructionmanual.Range/locations/network: focus on touristic centres of Switzerlandand the Principality of Liechtenstein.Property conditions: buildings are aimed for which are in locationswith touristic relevance and which can be operated on their ownaccount. Franchise partners to round out the network, but withoutcreating any competitive situations.Innovativeness: orientation towards exemplary services in our sector;demand trends among young people and families in our corebusiness of accommodation and food are to be quickly absorbed.Relationship with decision-makers: optimised lobbying to meetour ideal objectives.Attainment of societal goals: as described in the SYH and HostellingInternational mission statementsConsideration of employee interests: socially acceptable behaviourtowards employees and consideration for employee interestsinsofar as reasonable for the entire organisation.Management style: great emphasis on co-operation based onagreement on objectives.8

Organisation chartDELEGATES’ ASSEMBLYAs at 1 May 2010Statutory AuditsEXECUTIVE BOARDFinance CommitteeLegal CommiteeMANAGEMENTManagementAssistantsQuality Assuranceand EcologyE–marketing, Product Developmentand International RelationsSERVICESNEW TECHNOLOGYFINANCE & CONTROLLINGHUMAN RESOURCESHOSTELSCorporate DesignMarketingProducts / SegmentsDistributionPromotionPartnerMember ServiceContact CenterData Management /Direct MarketingPostal service /logisticsSoftware & ApplicationDevelopment / IntranetSupport / Controlling /Training / ReservationsystemASSD / E-CommerceSecurity / Infrastructure /Coordination2nd level Services /Network / Internet /Hardware / ServerFinance- and AccountingControllingContractsSocial insuranceWagesSocial counsellingCase ManagementPension fundOwn hostelsAREA EASTAREA CENTERAREA WEST/SOUTHFranchise hostelsPROJECTSBodies of the associationDelegatesTerm of office 2008 – 2011The individual members (currently 103,404) select 20 – 80 delegates for four years. Their powers include modification of the statutes, ratificationof the business report, approval of the actions of the bodies, selection of the executive board, president and statutory auditors, andnomination of honorary members.Aebischer Andreas, Manager, Baden | Avesani Guerino, Pensioner, Melano | Büschlen Ruth, Primary School Teacher, Bonstetten | BuschorTrudi, Teacher, Moosseedorf | Délèze Emmanuel, Manager, Geneva | Dolanc Oswald Marusa, Psychologist, Hondrich | Eberhard Rudolf, Pensioner,Zuchwil | Frei Silvia, Retailer, Interlaken | Fuchs Edwin, Electrical Engineer, Zollikon | Furger Christine, Parish Secretary, Arlesheim |Giacomazzi Fabio, Architect, Manno | Gisler Alfred, Managing Director, Lucerne | Granacher Bernhard, Manager, Kreuzlingen | Haag Helen,Housewife, Hirzel | Haug-Kern Esther, Registered Nurse, Zurich | Kasser Rosmarie, Secondary School Teacher, Küsnacht | Kaufmann Nic,Head of Communication, Allschwil | Keller-Giovanon Helene, Cook, Ossingen | Lemberg Susanne, Design Engineer, Zofingen | Lutz Béatrice,Pastor, Birsfelden | Mathies Andreas, Sourcer, Ettingen | Meier Nicole, Tourism Professional, Zurich | Meyer Stefan, Secretary, St. Gallen |Mottier André, Pensioner, Ste-Croix | Müller Karin, Movement Instructor, Bonstetten | Paliaga Luciano, Management Consultant, Contra |Paliaga Marco, Pensioner, Chur | Ramsperger Rolf, Secondary School Teacher/Principal, Neuhausen am Rhein | Rettenmund Anne-Marie,Commercial Clerk, Langnau i.E. | Sager Adrian, Manager, Interlaken-Unterseen | Scherler Jolanda, Registered Nurse, Schmitten | SchmidTheres, Occupational Therapist, Münsingen | Schwyter Faist Yolanda, Housewife/Registered Nurse, Zezikon TG | Städler-Bischof Esther,Chief Accountant, Wattwil | Steinmann Rolf, Civil Register Officer, Cham | Stiner Susanna, Businesswoman, Zurich | Toedtli Marc, Businessman,Boppelsen | Troendle Markus, Insurance Broker, Basel | Uhlemann Luzia, Housewife, Untervaz | Vogel Manon, Lawyer, Hinwil |Zulliger-Senn Annemarie, Home Economics Manager/Housewife, Volketswil9

Corporate governanceIn their reporting the Swiss Youth Hostels adhere to the standards of the Swiss Code ofBest Practice.The following elements characterise our corporate governance: good relationships withour members, effective co-operation between the organisation’s management and executiveboard, and a compensation system for employees and managers that is success-orientedand modern.Accounting by the Swiss Youth Hostels complies with the Swiss GAAP FER professionalrecommendations and gives a true and fair view of assets, liabilities, financial positionand profit or loss. The 2009 annual financial statement was prepared in accordance withthe Swiss GAAP FER 21 professional recommendations for charitable, social non-profitorganisations.Based on the corporate governance guidelines for non-profit organisations in Switzerland,the Swiss NPO code and the regulations for the ZEWO seal of approval for charitable organisations,the members of the executive board provide their services free of charge as ageneral principle. Any resulting actual expenses are reimbursed.If particularly time-consuming tasks or projects are assigned to one or several members ofthe executive board, compensation can be paid to them taking into account the non-profitnature of the organisation and following the applicable guidelines provided in the SwissNPO code. Services may not be compensated until the personal volunteer efforts exceed150 hours per calendar year.By way of compensation, delegates receive seven accommodation vouchers every year thatallow free usage of youth hostels along with reimbursement of their actual expenses forparticipation in the delegate assemblies; they do not receive any cash payments.Risk managementIn co-operation with the management, the executive board has carried out a risk analysisat the organisational level. A risk inventory was prepared that covers all of the businessareas/relationships and assesses the relevant risks, defines actions for minimising orcovering each risk, specifies responsibilities and verifies the effectiveness of the controlmechanisms.At the operative level, first-time risk analyses were prepared by the managers and departmentalsupervisors using the same specifications, and were reviewed by the organisation’smanagement.14

Product and service developmentMore transparency for guestsThe range of products and services offered by the Swiss Youth Hostelsis very broad. It extends from simple and functional accommodationsall the way to very comfortable hostels that are almost likehotels. If youth hostels were an industrial endeavour, one might saythat we enjoy good product diversification.This has advantages and disadvantages: it is clearly advantageousthat very diverse target groups can obtain what they want from us.This is true in terms of both the standard as well as the price. However,diversification can make it difficult for potential guests to discernthe “youth hostel” product. When booking accommodations,there are three main interests: location (“Where will I spend myholiday?”), standard (“What can I expect there?”) and price (“Howmuch will it cost me?”).In an age in which consumers have grown accustomed to findingout about things at a single glance and with two or three piecesof additional information, communication in advertising, sales andPR work is very challenging, involving much complexity and littleclarity. A clear system of product organisation is thus the only wayto improve communication in a lasting manner so we can offertransparency and quality to our guests.Using the classification system introduced in 2009 (top, classic,simple), we hope to respond appropriately to this situation.EU Eco-label and Ibex LabelThe EU Eco-label confirms that the enterprise to which the labelwas awarded reduces its consumption of energy, water and waste,uses environmentally friendly materials, and buys environmentallycompatible goods.This is complemented by the Ibex Label, which defines the full spectrumof sustainable operations in the areas of business management,business administration, environmental management, employees,regional added value and culture.The Swiss Youth Hostels have a stated goal of achieving certificationof all of its hostels by the end of 2010.Hostelling International Quality System HI-QHostelling International member associations are obliged to complywith the internationally agreed standards.The HI Quality Management System (HI-Q) is currently being introducedworldwide. HI-Q enables youth hostels to offer consistentlyhigh standards which can be improved on an ongoing basis so asto provide guests with the most enjoyable stay possible. HI-Q hastwo levels: level 1 is oriented towards the quality of all activitiesinvolving interaction with the guest, while level 2 focuses on managementand planning activities.Hostelling International’s objective is to see that all of the key hostelsworldwide are certified by the year 2012. At the end of 2009,there were 208 certified hostels and 30 countries under contract.All of the establishments managed by the Swiss Youth Hostels aswell as the Zurich administrative office are certified.The cleanest youth hostel in the worldGuests who use Hostelling International’s information and bookingplatform at hihostels.com have the opportunity to rate theirstay, and about 75,000 travellers do so every year. Based on theseratings, the “HI Best Hostel Awards” were presented just beforeChristmas. Grindelwald Youth Hostel was rated the “Cleanest Hostelin the World”.Quality. Our PassionThe quality seal of approval for Swiss tourism stands for the “software”in tourism, i.e. service quality. It distinguishes hostels thatwork continuously to ensure quality and offer their guests the bestpossible experience each and every day. All of the establishmentsmanaged by the Swiss Youth Hostels as well as the Zurich administrativeoffice are certified.Number of certified youth hostels 2007 2008 2009EU Eco-label 10 17 20... in processing 2 2 12Ibex Labelwith 2 ibexes – – –with 3 ibexes 8 12 13with 4 ibexes 2 5 7with 5 ibexes – – –... in processing 2 2 12Q Quality SealQ Quality Seal I 11* 38* 47*Q Quality Seal II 1 1 1Q Quality Seal III – 1 1HI-QHI-Q I – 38* 47*HI-Q II – – 2* including Zurich administrative office15

Integrated quality management systemSince the revised Swiss Code of Obligations came into force on 1January 2008, there are new legal provisions that the Swiss YouthHostels must also fulfil. This primarily concerns management, accountingand the legally required financial auditing, which is to beperformed by statutory auditors registered with the Swiss government.The law requires companies that exceed a certain size limitto have an internal control system in place to prevent serious misuseof individual organisational processes.In order to comply with these legal requirements, the Swiss YouthHostels have introduced an integrated quality management system(IQMS) to supplement the subareas covered by the HI-Q qualitymanagement system with other legally stipulated processes.This ensures a certain level of service quality for our guests on theone hand, and the quality level in the areas of management andaccounting on the other hand.A new look for the Palagiovani Locarnoyouth hostelRenovation of the Palagiovani Locarno youth hostel with its threeconstruction stages is now complete. This multifaceted buildingnow has a completely new appearance with its modern architecture.Many of its rooms have added comfort, and there are manynew features in the background too. Significant investment wentinto ecological measures: energy-conserving renovations includingbuilding insulation, a solar energy system and connection to districtheating have reduced energy consumption by more than 35%.Modifications to ensure compliance with fire protection specificationsand the new electronic lock system provide even greatersafety and security for guests. Thanks to the redesign of the groundfloor and the surroundings, it was possible to complete the workprior to the start of the season. The Swiss Foundation for SocialTourism invested a total of about CHF 9.3 million for the purchaseand renovation.basel St. Alban Youth Hostel sets new standardsThe renovation and expansion of Basel St. Alban Youth Hostel byarchitects Buchner Bründler has moved forward on schedule. Afterthe start of construction on 1 December 2008, some surprises werediscovered in the existing construction, with additional requirementsto be managed. With its 234 beds, the youth hostel openedon 15 March 2010. It will no doubt become known as a masterpiecefor its architectural and operational aspects.Maintenance work in existing youth hostelsDuring the year under review, the Swiss Foundation for Social Tourisminvested about CHF 1.06 million into regular maintenance ofits own properties. Moreover, roughly CHF 300,000 was investedin Brienz Youth Hostel to fully renovate the sanitary systems andprovide handicapped access. Accordingly, Brienz Youth Hostel withits lovely lakeside location now again fulfils the minimum requirementsfor a simple hostel.No youth hostel on TwannbergDuring the year under review, the Swiss Youth Hostels were involvedin the “Twannberg Youth Hostel” project after the TwannbergHoliday Village Foundation was unable to secure the necessarylong-term financing. Intensive project work revealed that the buildingvolume involved in the Twannberg Holiday Village is significantlytoo large to allow operation of a youth hostel there withoutenormous investment; the infrastructure would require fundamentaladaptation. Moreover, it would not be possible to finance themedium- to long-term investments into the infrastructure from theoperations due to the large building volume.85 years of youth hostels in SwitzerlandIn 2009, the Swiss Youth Hostels celebrated their 85 th anniversary.As a prelude to the anniversary year, we published a special issueof “MyHostelNews” with a summary of the organisation’s historyand many special offers for the anniversary year. The large printrun of 500,000 copies was distributed as an anniversary issue toour members and also inserted in various family-oriented magazinesdistributed in Switzerland. Included with the issue was ananniversary coupon worth CHF 8.50, and coupons worth a total ofCHF 39,186 were redeemed.The internationally renowned animated film festival Fantoche wasour partner for celebrating the anniversary of the youth hostelmovement. For this event we collaborated to hold a unique animatedfilm competition.Media reports targeting the family segment appeared in “SchweizerFamilie”, “Spick” and “Kidy Swiss Family”. The anniversary yearincluded live reports on DRS 3 and DRS 1, and during 2009 morethan 1,000 news items made their way into the radio, TV and printmedia throughout Switzerland.Youthpalace Davos now under our ownershipIn early January 2009 the purchase option for the Youthpalace inDavos was exercised and ownership was transferred to the SwissFoundation for Social Tourism. This allowed us to secure an importantpillar in our long-term locations strategy.Modern technology as an essential toolA youth hostel operation without modern technology is inconceivablenowadays. Advanced information technology using both Internetand Intranet is now an important part of our business. More than3,300 visitors stop by our website at www.youthhostel.ch every dayand open some 30,000 pages. The Intranet system has been rebuiltfor our employees and executive board members and is now ourmost important internal communications platform. All of our usershave access to a central database, and documents are guaranteedto always be up-to-date.16

Online booking systems now represent an essential sales channel.Accommodation in all of our youth hostels can be booked viawww.youthhostel.ch, www.hihostels.com, www.hostelworld.com,www.hostelbookers.com and www.hostelsclub.com. In 2009, werecorded 41,743 bookings generating sales of about CHF 6.4 million.Compared with the previous year, this represented a decline of5.1% due to a drop in bookings from overseas markets.2007 2008 2009Visitors towww.youthhostel.ch 860,628 1,088,679 1,208,885Ø visitors per day 3,484 2,982 3,310Number of pages opened 7,347,567 10,391,284 11,295,145Number of bookings viaonline systems 38,596 45,673 41,743Overnight stays resultingfrom online bookings 139,857 168,092 152,797Sales resulting fromonline bookings 5,307,016.25 6,752,793.45 6,405,344.45High customer satisfaction motivates topperformanceAll guests are asked to evaluate their stay. The questionnaire canbe completed onsite or online. The rating system has scores of“very good” (100 points), “good” (75 points), “satisfied” (50 points)and “not satisfied” (1 point). Ratings for the whole network were asfollows:2007 2008 2009Employees N/C 85 pts 86 ptsRooms N/C 73 pts 72 ptsShower/WC N/C 70 pts 71 ptsLounge N/C 72 pts 71 ptsMeals N/C 78 pts 79 ptsCleanliness N/C 82 pts 82 ptsAtmosphere N/C 77 pts 77 ptsComfort N/C 68 pts 68 ptsPrice/performance N/C 72 pts 70 ptsOverall rating N/C 75 pts 75 pts(N/C: Not Collected)Systematic analysis of the large number of guest evaluations (and,in some cases, direct contact with guests) is helping us to continuallyimprove the quality of our products and services. Individualguest ratings are also published in real time on the Intranet soeach and every employee can see them.17

Hygiene Consistent implementation of hygiene concept AchievedZero tolerance for dirt; no complaints by food inspectorAchievedImage Examination/revision of correspondence templates in accordance with CI/CD AchievedAccounting Further development of IQMS AchievedConsistent usage of checklists as per IQMS specificationsLargely achievedWeekly forwarding of creditor invoicesLargely achievedMonthly reconciliation of all asset accountsAchievedMonthly updating of acquisitions of moveable assets and annual updating of disposalsAchievedQuarterly inventory by 5 th of following month at the latestAchievedIntroduction of “ABACUS archiving”AchievedTreasury Daily counting of cash on hand; counting at each shift change in large hostels Largely achievedWeekly counting of cash in vaultAchievedWeekly reconciliation of bank balancesAchievedTransparent disclosure of all cash discrepanciesAchievedReservation management – Daily updating of entire sales offeringLargely achievedE-commerceDaily release of bed availabilityLargely achievedEnsure bookability 12 months in advanceAchievedData administration Active usage of new MemberExchange AchievedCreation of a single database with selection facilitiesNot achievedSimple maintenance Regular and systematic checks Largely achievedZero tolerance for defective parts and damages due to scribblesLargely achievedMaintenance of a logbookLargely achievedComplaint management Complaint response within 48 hours AchievedNew Technology Central database administration with direct transfer of financial data to ABACUS AchievedCentral, real-time ASSD guest profile databaseDocumentation of software programming/applicationsDocumentation of lock systemsManagement information system: Concept, programming and introductionGuaranteed IT hotline 365 days/yearAchievedAchievedAchievedAchievedAchieved100 years of youth hostelsworldwide – 85 years of youthhostels in Switzerland Special activities, packages, PR campaigns Achieved19

Valbella Youth Hostel (GR)

Social developmentPositive membership trendDiversity of guests in youth hostelsAs at 31 December 2009, the Swiss Youth Hostels had 103,404members. This is equivalent to an increase of 8.6% compared withthe previous year.2007 2008 2009Junior members 28,715 30,124 32,395Senior members 40,041 41,888 46,182Family members 18,155 18,655 19,869Group members 4,587 4,569 4,958Total 91,498 95,236 103,404100,000 th member joins the Swiss Youth HostelsFor the first time ever in the 85-year history of the Swiss YouthHostels, the membership count surpassed the hundred thousandmark: Christoph Schmid, from Birrwil/AG, who took out a familymembership in July, was duly welcomed as our 100,000 th member.A good mixture of target groups and age profiles, combined with thestrong domestic market, is helping to achieve optimum seasonaloccupancy of our hostels. This is a goal we have pursued for years,and it definitely proved its worth during the challenging economicconditions prevailing in 2009, as the Swiss rediscovered their owncountry and took advantage of the attractive price/performanceratio of our products and services.2007 share 2008 share 2009 shareIndividualguests 459,561 50.00% 475,782 48.23% 451,094 47.21%Groups 156,189 16.99% 173,498 17.59% 184,865 19.35%Schools 137,349 14.94% 139,843 14.18% 128,083 13.40%Families 165,953 18.06% 197,348 20.01% 191,508 20.04%Total 919,052 100% 986,471 100% 955,550 100%Age profile of guestsA new look for MyHostelNewsIn 2009, our member magazine “MyHostelNews” was given a newlayout with an illustrated cover page. A greater emphasis is nowalso placed on youth hostel offerings so that readers are more fullyaware of the benefits. “MyHostelNews” is published quarterly and70,000 copies are distributed in printed form to the members. Theelectronic version is sent to 36,903 e-mail addresses.2007 2008 2009Up to 20 years 37% 36% 34%20 to 25 years 13% 13% 7%26 to 34 years 12% 13% 9 %35 to 44 years 19% 18% 20%Over 45 years 19% 20% 30%Origin of guestsMemberAddressExchange for added convenienceA significant advance was achieved for our guest service (contactcentre) and also for the individual youth hostels with the implementationof the MemberAddressExchange programme. Retrievalof complete address data for our members entails major time savingsand allows faster recording and modification when required.Members who don’t have their member card with them whenchecking into a youth hostel can now also be handled quickly andwithout much hassle. Compliance with applicable security anddata protection regulations was given top priority in implementingthis service.2007 share 2008 share 2009 sharearrivalsarrivalsarrivalsSwitzerland 267,266 57.32% 271,366 54.77% 280,619 58.25%Germany 61,808 13.26% 68,817 13.89% 65,948 13.69%France 11,393 2.44% 14,021 2.83% 15,102 3.13%USA 11,792 2.53% 12,191 2.46% 12,518 2.60%Great Britain 10,477 2.25% 13,212 2.67% 11,380 2.36%Spain 10,533 2.26% 11,753 2.37% 9,105 1.89%Italy 7,453 1.60% 9,393 1.90% 8,682 1.80%Netherlands 7,605 1.63% 9,350 1.89% 8,231 1.71%China 6,231 1.34% 5,785 1.17% 5,007 1.04%Japan 4,789 1.03% 5,424 1.09% 4,838 1.00%Austria 3,618 0.78% 3,888 0.78% 4,421 0.92%Canada 4,920 1.06% 5,027 1.01% 4,382 0.91%Australia 5,410 1.16% 5,338 1.08% 4,145 0.86%Belgium 3,709 0.80% 3,815 0.77% 3,612 0.75%Other countries 49,289 10.58% 56,119 11.33% 43,742 9.08%22

Average length of stay of guests (days)Management by Objectives2007 2008 2009Switzerland 1.99 2.01 1.98Germany 2.17 2.22 2.16France 1.89 1.88 1.80USA 1.71 1.76 1.70Great Britain 2.37 2.27 2.30Spain 1.70 1.75 1.82Italy 1.93 2.04 1.87Netherlands 1.85 1.96 1.88China 1.34 1.38 1.52Based on the mission statement, the medium-term strategies ofthe Swiss Youth Hostels are defined by the executive board andthen further specified in terms of their content and timing withinthe context of the management’s annual operating goals.As part of the annual target formulation and agreement process,the annual operating goals are derived for the different levels andoperationalised with concrete target formulations. Following thistop-down process, both co-ordination and consolidation are donebottom-up.This systematic process provides all of the employees with thenecessary understanding of the organisation’s objectives whilefulfilling the relevant prerequisites for active participation.Japan 1.74 1.66 1.65Austria 1.91 1.99 2.04Canada 1.74 1.71 1.78Australia 1.87 1.88 1.83Belgium 1.97 1.82 2.14Average 1.97 1.99 1.98Obstacle-free youth hostelsAfter a comprehensive concept was developed in 2008 for obstacle-freeyouth hostels, we were able to begin work on the implementationin various subareas during the year under review. InBasel and St. Moritz, more stringent construction requirementswere taken into account in the planning and in Brienz, the sanitaryfacilities were designed to be obstacle-free.The main focus was to sensitise and motivate all of our employeesthrough courses provided by specialists as well as a presentationduring the autumn employee conference. One major weakness isthe scant information for disabled guests. Thanks to the informationupgrade by two persons performing their civil service, it is nowpossible to provide comprehensive information on disabled accessand on arrivals for all of the youth hostels.Contemporary wage systemFor years now, a wage system has been in place for the managersof the youth hostels that is based on a wage- and revenue-sharingmodel. While the wage components are specified according to uniformstandards, the revenue-sharing is derived from the extent towhich the budget is complied with and the objectives are met.Employees are compensated in accordance with the specificationsof the trade associations. For years now, all of our employees havereceived pay for a 13 th month, which was still not part of the collectiveemployment agreement in the hotel and restaurant sectorin 2009.TrainingBasic and advanced training of our employees represents a keyelement of our efforts to boost the quality of experience for ourguests and employees. Accordingly, we carried out internal trainingevents on an ongoing basis. The focus was on occupational safetyand professional topics. Responsibility for internal basic and advancedtraining is assumed by the hostel managers or by the headsof the sectors or departments.Specific professional courses, in some cases held by external experts,were offered throughout the organisation for all employees.The content of these courses was co-ordinated to meet the everydayneeds of the Swiss Youth Hostels. Management modules werealso offered to hostel managers as well as their assistants andemployees. The contents were oriented towards personal development,and the insights gained are universally applicable in thehotel and restaurant industry.The three-day autumn conference for the management teams andall employees at the Locarno office was dedicated to two subjects:“Promoting communication and a culture of feedback – Buildingconfidence“ and “Intoxicated guests – Handling and prevention”.In addition, two-day regional meetings were held for the East, Centraland West/South management teams. Here, the main subjectswere “Sales activities, care of regular customers” and “Max Havelaarproducts”.In 2009, the focus of advanced training for employees of the Zurichadministrative office was on enhancing knowledge about the individualyouth hostels. The management teams helped to deliver therelevant information in three courses.As an organisation with Swiss/international activities, languageskills are very important. Qualified language teachers are availableto the employees of the administrative office on a weekly basis. In2009, a total of 426.5 lessons were provided for French and 191lessons for English in individual and group tuition.2007 2008 2009Payroll in CHF 12,950,860 14,202,581 14,299,898Social securitycontribution in CHF 2,109,976 2,298,138 2,388,245Profit-sharing in CHF 432,900 589,207 459,611Employees who foresee spending their career with the Swiss YouthHostels can complete a promotional programme. Over the course ofone to two years, candidates work in different positions and participatein project teams in order to acquire the skill set needed for adifferent/higher position in the future. By actively supporting youngtalent, we are able to repeatedly recruit future managers from withinour own ranks.23

External basic and advanced training is given financial support,provided the knowledge that is gained will benefit the person’s everydaywork. Depending on the amount of financial support, a minimumemployment duration is stipulated in an agreement.In 2009, we employed two apprentices (business administration)and two trainees from professional tourism schools in our Zurich office.A total of 11 apprentices/trainees worked at the youth hostels.2007 2008 2009Advanced training courses offered 35* 34* 31*Number of participants 320* 386* 368*Total hours of in-company advancedtraining 4,220 4,694 4,442Number of persons in promotionalprogramme 4 3 3Number of apprentices and trainees asat 31.12. 13 18 15Number of persons involved in externalbasic/advanced training 1 4 3* plus individual and group tuition in English and FrenchCase management and social counsellingAccidents and illnesses experienced by our employees are handledin a professional manner in co-operation with an external businesspartner, and all relevant measures are taken to ensure the reintegrationof affected employees.An external social counselling service is also available to all employees,free of charge. The availability of competent support onpersonal, health-related, financial, legal or administrative mattersis much appreciated.2007 2008 2009Case management: employees under care 16 22 15Inability to workup to 5 days 6% 9% 0%6–14 days 31% 9% 13%15–30 days 19% 36% 27%31–60 days 19% 23% 27%61–90 days 6% 9% 20%91–365 days 13% 14% 13%Special services for employees, voluntary executiveboard members and delegatesEmployees, voluntary executive board members and delegates receiveaccommodation coupons allowing free usage of youth hostelsfor themselves and their family members every year:- Employees: 14 coupons (1 st to 4 th year of employment)or 21 coupons (starting from the 5 th year of employment)- Executive board members: 14 coupons (1 st term of office)or 21 coupons (starting from the 2 nd term of office)- Delegates: 7 couponsIn 2009, benefits worth CHF 89,804 were provided in this manner.Pandemic preparednessIn the interest of protecting the health of our employees, we arerequired to undertake all measures that are necessary accordingto our experience and the conditions prevailing in the hostels. Inresponse to the worldwide outbreak of pandemic influenza (H1N1),we developed a pandemic preparedness plan in early summer2009 and introduced all of the relevant measures. For example,protective masks were provided for all of our employees, a specialinformation page was set up on the Intranet and a 24-hour hotlinewas established. Thankfully, we did not experience any cases ofH1N1 influenza.Retirement pension foundation of the Swiss YouthHostelsThe Swiss Youth Hostels have their own retirement pension foundation.The board of trustees is composed of four employee representativesand four employer representatives.Employee representatives: Granacher Bernhard | HollensteinChristine | Lutz Walter | Zollinger Markus (Vice President)Employer representatives: Dobler René | Gmür Fredi (President) |Hitz Ursula | Müller ChristophThe Swiss Youth Hostels’ pension fund has a cover ratio of 106.14%,which is considered very healthy. In view of this favourable financialposition, the board of trustees was able in the year under reviewto pay interest on the employees’ retirement credit balance ata rate that is 1 percentage point higher than the minimum BVG ratestipulated by the Federal Council.over 365 days 6% 0% 0%Social counselling: questions/consultationpersonal / family-related 0 1 1health 1 2 1work-related 1 0 3financial 1 3 0professional consultation 0 0 12007 2008 2009Retirement assets in CHF 11,899,266.00 12,701,004.70 13,440,297.60Available funds in CHF 684,544.70 818,238.20 840,325.60Cover ratio 105.75% 106.44% 106.14%Active insured persons 364 381 390Pensioners 23 22 2324

Partnerships bear fruitVarious types of partnerships form a fixed component of our activities.Our proven co-operation with CSS Insurance again includeddiverse communications-related activities, with the 19 “Wasserperlen”youth hostels forming the basis as in the past. Our membersalso have access to insurance services under special terms,and CSS members can take advantage of special offers in ouryouth hostels.We publicised various special offers in co-operation with IKEA.Moreover, IKEA FAMILY members were able to stay in youth hostelsat member rates using their FAMILY Card. We also launched partnershipswith Pro Infirmis, REKA, Coop and Rent a Bike.MembershipsThe Swiss Youth Hostels are a member of the ZEWO Foundation,the Swiss Certificating Authority for Charitable and DonationfundedOrganisations, of Hostelling International (HI), the EuropeanUnion Federation of Youth Hostel Associations (EUFED), theWorld Youth Student & Educational Travel Confederation (WYSE),Switzerland Tourism, the Swiss Hotel Association, GastroSuisse,the Swiss Tourism Federation, öbu (the sustainable business networkin Switzerland), WWF Climate Group and the Energy Agencyfor Industry (EnAW).Social objectives 2009 – EvaluationMembers Membership base 95,000 AchievedEmployeesEnsure agreement on objectives, performance evaluation and individual developmentplan for each employeeAchievedAttendance of at least two internal or external basic/advanced training coursesLargely achievedConsistent implementation of legal regulations for occupational safetyAchievedRetain seasonal employees and register in job poolLargely achievedEmployees wear employee uniforms and have nametagsNot achievedTime recording is signed, checked and initialled by employees and supervisors everymonthAchievedEfficient usage of case management; immediately report health-related absencesand provide doctor’s certificateAchievedConsistent paid leaveLargely achievedMake good use of Movis social counsellingAchievedPersons performing civil Fully utilise allotment of 20 persons performing civil serviceAchievedserviceUtilisation planning for persons performing civil service in accordance with requirementspecificationAchievedObstacle-free youth hostels Building surveys AchievedModification of website and extension of offeringPartly achieved25

Ecological developmentEnvironmental managementThe Swiss Youth Hostels have introduced a comprehensive environmental management programme during recent years. Ecological issuesshould also be taken into account, as it is a matter of course in today’s business management. To this end, we focus on the highest measurablestandards and labels and co-operate with extremely ambitious business partners.In construction, the Minergie and Ecobau standards are used as guidelines in the areas of energy and material selection. All of our hostelswill receive the EU Eco-label and Ibex Label by the end of 2010. In food purchasing, Max Havelaar products satisfy the most demandingfair trade expectations. With the Energy Agency for Industry (EnAW) and the WWF Climate Group, two ambitious partners, lofty objectivesfor energy efficiency were agreed upon on a mandatory basis. Moreover, myclimate guarantees compliance with the highest standardsfor climate compensation projects. We also benefit from a large amount of input from the öbu company network. For instance, the administrativeoffice took part in the “bike to work” effort for the first time with two teams. Our Sustainability Report 2008 was submitted forthe “Best sustainability report” awards and we applied for the “Sustainability prize for small- and medium-sized businesses” offered byZürcher Kantonalbank.Key elements in the environmental management programme include motivating and informing all of the employees. Training mainly takesplace as part of the certification process for the EU Eco-label and the Ibex Label. We also took advantage of specific internal and externalprofessional training opportunities.Efficiency analysisWe have maintained detailed energy accounting since 1996. Thisis used primarily to verify the effectiveness of the measures weundertake and to recognise any negative developments early on.Various analysis tools are used to determine the highest usagecategories, allowing us to concentrate our efforts on the most efficientmeasures. An energy certificate was prepared for all of thebuildings. This provides new insights based on comparison valuesas well as important information about the new instrument of theSIA and the cantons. In the year under review, Mr Michael Kellerfrom the Swiss Federal Institute of Technology Zurich computedemission profiles of youth hostels and hotels in various categoriesas part of his master’s thesis. The main findings include the verylow level of emissions produced by youth hostels compared to hotelsin higher categories as well as the high share of emissions associatedwith restaurant purchasing. Procurement of 100% Swisshydroelectric power results in a significant reduction in emissions.SYH Zurich (UCTE – actual)SYH Zurich (H 2O – actual)36% Production (electricity)29% Heating (gas)25% Restoration5% Waste & Water2% Cleaning (RHV)2% Emissions Administrative office1% Traffic & transport46% Heating (gas)40% Restoration7% Waste & Water3% Cleaning (RHV)2% Traffic & transport2% Emissions Administrative office0% Production (electricity)Emission profile, Zurich Youth Hostel (UCTE power)Emission profile, Zurich Youth Hostel (Swiss hydroelectric power)26

Reduction in consumptionCompensationThe primary emission factor for youth hostels is space heatingalong with purchasing. In 2009, it was possible to keep up the veryhigh increase of energy efficiency of youth hostels in this area. Wewere able to reduce the specific CO 2emissions for space heatingby 27.9% compared to 2000 (previous year: 28.3%). This means thatthe mandatory value for 2009 (7.6%) that was agreed with EnAW isfulfilled by far. The overfulfilment in the amount of 478 tons of CO 2could be sold to the Climate Cent Foundation. At the beginning ofthe year, on the occasion of a second tendering by the Climate CentFoundation, a new agreement was concluded for an additional CHF75,000 for the sale of target overfulfilments. It appears that our pioneeringrole will pay off in the future. The intention of the Federalgovernment to retain the CO 2levy and the possibilities of exemptioneven after 2012 suggests favourable prospects in this area.The most important measures in the study year was the energy facadeupgrade of the south gable and the conversion of the districtheating system from oil to wood, both at the Locarno Youth Hostel.Space heating – specific CO 2loadingFirst of all, we are attempting to realise all of the savings that maybe accomplished in the areas of construction and operation. Withregard to consumption that cannot be reduced, our guests havehad the opportunity since 2008 to voluntarily compensate for theemissions. Our guests, participation in voluntary CO 2compensationincreased to over 57%, which corresponds to compensation ofabout 3,200 tons of CO 2.The emission profiles for our youth hostels were analysed andcomputed in detail (scope 1–3). The findings from this analysisalong with the increased energy efficiency are allowing the voluntarycompensation amount to be decreased to CHF 0.50 perovernight stay. For practical reasons, the Swiss Youth Hostels havetransferred administration of the resulting climate fund to theSwiss Foundation for Social Tourism. In the year under review, thisfund was used to finance a systematic check of all showers, toiletsand sinks along with the necessary improvements to reduce ourwater consumption. Using the contributions made by youth hostelguests, the myclimate foundation financed a project for solarcookers in Madagascar.Specific CO2 loading(t/unit floor area)403530252015105099 00 01 02 03 04 05 06 07 08 09 10 11 12Specific CO2 loadingTarget course2007 2008 2009*% compensated overnight stays – 27.8 57.2Compensation for overnight stays in CHF – 130,813 254,979Own projects realised in CHF – 33,287 13,454Payments to myclimate from compensationby guests in CHF – 65,406 127,490Payment to myclimate from compensationfor car and air kilometres in CHF – 1,800 2,175* starting 1.12.2009: decrease in compensation from CHF 0.60 to CHF 0.50In the year under review, the average electricity consumption couldnot be reduced. This is hardly a surprise despite our great effortsto reduce consumption. A negative effect comes from the buildingsthat comply with the Minergie standard (ventilation, heat pumps)and various standard improvements such as conversion to usageof duvets as well as from the upgrading of previously inadequatelighting in living areas and rooms. Thanks to continuous effortsthis extra consumption could be compensated for. It was possibleto minimise emissions by purchasing 100% Swiss hydroelectricpower.In the areas of water consumption and waste/recycling, reductionsare achieved through specific operating adjustments related to theEU Eco-label and the Ibex Label. In the year under review, amongother steps, 19 hostels were fully outfitted with water-saving valvesor existing installations were inspected. All other youth hostels willfollow in 2010. Although continuous standard improvements regardingthe sanitary facilities, the average water consumption perovernight stay was pratically held stable.(See table Resource consumption/emissions, page 37)FutureThe tools and standards that we use are now very comprehensive.They will be further expanded in the future only in certain cases.For example, in 2010 a mobility management system will be developedwhich will also encompass handling of guest arrivals. In viewof the large overfulfilment of the EnAW targets, the internal targetswill be raised to a significantly higher level after 2012. The new targets,however, will only be determined based on precise analysisof the opportunities and consequences. We hope to continue servingas a role model in this area and sharing our experiences withinterested parties. In the year under review, various presentationswere given for partners and interested third parties. We will alsomaintain our support for the efforts and initiatives undertaken byassociations and other organisations. In this connection, we congratulatedSwiss tourism organisations on their SustainabilityCharter in a full-page advertisement and we underlined our convictionsconcerning lofty environmental objectives in various Swisspolitical initiatives.27

Basel St.Alban Youth Hostel (BS)

International involvement100 years of youth hostels worldwideIn 2009, youth hostels celebrated their 100 th anniversary. The ideaof youth hostels had been brought to life in Germany by the teacherRichard Schirrmann, who also opened the first youth hostel at BurgAltena in 1912. This event was celebrated around the globe witha number of diverse activities. At the official anniversary celebrationat Burg Altena, our President and Vice President as well as ourmanagement offered congratulations from Switzerland.Hostelling International with Swissrepresentation (HI)Youth hostels are united across the globe by the Hostelling Internationalassociation. It is headquartered in Welwyn GardenCity (GB) and is run by a nine-member board. Our executive boardmember Heinz Lüdi is a member of this board and serves as its VicePresident.Key facts about Hostelling International in 2009:• 68 member associations• 9 associated organisations• 4,000 youth hostels• 38 million overnight stays annually• 350,000 beds• Active in 89 countries• 3.7 million national members• 13 million annual visits to hihostels.com• Estimated annual revenue of CHF 1 billion in HI networkFull membership in the European Union Federationof Youth Hostel Associations (EUFED)The Swiss Youth Hostels were an associated member of the EUFEDfor many years. With the redefinition of the future orientation andresponsibilities, the statutes were revised and new member categoriesspecified. Following this change, we obtained full membership,as a consequence we have to pay a higher yearly membershipfee in 2010. With that we gained all rights and responsabilities(voting- and entitlements rights).Hostelling International Marketing GmbHon targetHostelling International Marketing GmbH is headquartered in Zug.The Swiss Youth Hostels and their Dutch counterpart each own a50% share. The managing directors of this organisation are the tworespective CEOs Fredi Gmür (SYH) and Marijke Schreiner (Stayokay).Its business activities are focused on the HI-Quality project(see page 15). Following its launch in 2007, the organisation is nowon target and in the year under review it also covered its own costsfor the first time.Expertise transfer for the sake of our membersOn the international stage, the Swiss Youth Hostels are consideredto be a leading organisation in terms of construction, operation andmanagement. In the interest of our members who also visit youthhostels outside of Switzerland, we are eager to share our knowledgewith partner organisations.Tours of hostels and workshops in Switzerland:January DJH Landesverband BayernJune Arabic Union with representatives from Bahrain,Lebanon, Saudi Arabia, Syria, Sudan and TunisiaJuly Tunisia YHASeptember YHA England & WalesOctober HI CanadaDecember FUAJ FranceDelegation trips outside of Switzerland:November LebanonDecember Germany, DJH Landesverband BayernSustainability Charter for international youthhostel organisationsAs requested by Hostelling International (HI), René Dobler prepareda Sustainability Charter for Hostelling International in cooperationwith a representative of the Australian association. Thischarter covered all of the major hurdles so that it can be voted onduring the 2010 HI World Conference in China.31

Market and financial developmentMultifaceted market canvassingSwitzerland Tourism has been one of our most important partnersfor many years now. We enjoy close co-operation, especiallyin the family sector. In addition, we contributed a substantial sumto the impulse campaign 2009/10. Switzerland Tourism used thiscampaign to respond to the fiercer competition in the worldwidetourism market and was able to further stimulate the summer andwinter seasons with a total budget of CHF 15 million.Our international sales activities were concentrated on WYSTC inManchester where the entire youth travel industry came together,as well as Holiday World in Prague, ITB Berlin and the TNT TravelShow in London. On the international stage, we worked in close cooperationwith Switzerland Tourism, Hostelling International and, insome instances, with tourism organisations such as Zurich Tourism.We no longer attended any holiday tradeshows in Switzerland.However, we were still present with a bookable summer productas a main partner of IG Schweiz Mobil. At the Gurtenfestival, wecontinued to make an appearance as the largest youth hostel inthe world. For the first time, we became involved in Freestyle.ch.Being the largest fun sport event in Europe for snowboarding, skiing,skating and FMX, it took place over three days on Landiwiese inZurich. The Swiss Youth Hostels were represented at the event withtwo activities. The winners of the “Best Move Award” and “Best DesignAward“ received their prizes from Olympic snowboard championGian Simmen at Zurich Youth Hostel after the event.Good results despite worldwide crisisWith a total of 955,550 overnight stays, we could not quite reachthe record high achieved in the previous year (-3%). However, ithas to be kept in mind that the Basel St. Alban and Dachsen youthhostels were closed the whole year for renovations (roughly 40,000overnight stays in previous year). Moreover, the franchise agreementin Maloja was terminated at the end of 2008, so that Malojano longer features in the statistics (4,000 overnight stays). A morerealistic comparison reveals a gain of 1.3% for last year’s results.The average bed occupancy was 53.4%.Despite the missing revenue from Basel St. Alban and Dachsen, itwas still possible to almost match the total sales from the previousyear at CHF 40.5 million. At CHF 8,254, the income per bed is 5.2%above the previous year’s level and the average operating incomeper overnight stay also increased by CHF 2.39 to CHF 54.19. Thecash flow generated totals CHF 10.58 million, which is 1.1% higherthan in the previous year.Optimised operating processes, strict cost management, productmodifications/improvements and also the impulse campaignlaunched by Switzerland Tourism all had a positive influence on ourbusiness development, allowing us to increase our capital base in2009 as well (CHF 4.1 million as at 31 December 2009).Expansion of the Contact Centre has worked out well. More than1,000 additional calls were handled every month during the hourswhen the youth hostel receptions are closed. Cross-selling wasalso further expanded, resulting in sales and bookings worth morethan CHF 100,000.32

Market and financial objectives 2009 – EvaluationBed occupancy 52% AchievedOvernight stays 724,810 (without franchise hostels) AchievedTotal sales CHF 37,873,892 AchievedRevenue, member contributions CHF 2,019,700 AchievedRevenue, daily memberships CHF 900,000 Not achievedRevenue, incoming CHF 400,000 Not achievedRevenue, E-commerce 20% of total revenue booked via E-commerce Not achievedRevenue, cross-selling 5% of total revenue from cross-selling bookings Not achievedCash flow 40% of cash flow covers all investments AchievedResult 3% of total revenue (before return on equity) AchievedReturn on equity 2% return AchievedProfit margin ll Profit margin ll at least covers costs Largely achievedEmployee productivity CHF 156,000 on corporate level AchievedPersonnel cost share 45% in small hostels Largely achieved40% in medium-sized hostels Achieved36% in large hostels Largely achievedMinimum margins 72% kitchen Achieved55% drinks Achieved25% kiosk non-food AchievedPurchasing Consistent purchasing from contractual suppliers AchievedFinancial planning Preparation of a three-year budget AchievedRisk management Assessment of risks and definition of measures to minimise risks at operative level Achieved33

Grindelwald Youth Hostel (BE)

Summary of key figures1992 1) 1996 2) 2000 3) 2005 2006 2007 2008 2009Operating informationNumber of own hostels 64 56 47 45 45 46 46 44Number of franchise hostels 16 17 16 16 14 12 12 11Total including franchise hostels 80 73 63 61 59 58 58 55Number of beds 7,272 6,813 6,359 6,501 6,220 6,455 6,396 6,119Rental charges 1,745,099 2,680,000 3,679,080 5,602,489 6,104,176 7,647,780 9,138,263 9,197,267MembersTotal members 78,522 65,855 66,277 85,379 87,276 91,498 95,236 103,404Overnight staysIn own hostels N/C 562,543 573,248 590,386 657,292 727,236 785,209 747,798Including franchise hostels 920,524 744,777 814,075 866,790 881,408 919,052 986,471 955,550Satisfaction rating (scale: 1–100 points; see page 17)Guests N/C N/C N/C N/C N/C N/C 75 75Employees N/C N/C N/C 93 95 96 95 97EmploymentEmployees, hostels N/C 363 345 338 365 426 418 410Full-time posts, hostels N/C 175.7 163.0 179.5 195.5 215.6 225.0 219.2Employees, administrative office N/C 29 27 28 31 34 37 37Full-time posts, administrative office N/C 21.4 22.6 23.2 24.3 24.7 27.6 30.8Employees, total N/C 392 372 366 396 460 455 447Full-time posts, total N/C 197.1 185.6 202.7 219.8 240.3 252.6 250.0Fluctuation rate N/C N/C N/C N/C N/C 9.3% 9.1% 9.5%Staff profileAverage age N/C N/C N/C 36.4 37.0 37.2 37.2 37.8Overall percentage of women N/C N/C N/C N/C 63% 68% 66% 66%Percentage of women in managementpositions N/C N/C N/C N/C 52% 57% 55% 56%Accidents, days of absenceOccupational accidents N/C N/C N/C 17 23 26 21 16Non-occupational accidents N/C N/C N/C 17 18 19 25 36Days of absence due to accident,illness or maternity N/C N/C N/C N/C N/C N/C 5,281 2,914Direct cost of days of absence in CHF N/C N/C N/C N/C N/C N/C 276,554 348,375Wage spreadMinimum gross wages in CHF N/C 2,250 2,360 3,100 3,130 3,200 3,250 3,350Ratio of highest wages to minimum(wage spread) N/C > 3.92 > 4.24 > 4.03 > 3.99 > 3.91 > 4.15 > 4.0336

1992 1) 1996 2) 2000 3) 2005 2006 2007 2008 2009Resource consumption / emissionsSpace heating (oil/gas):Reduction in specific CO 2loading N/C N/C 0% 13.8% 15.7% 20.3% 28.3% 27.9%Power consumption per overnight stay (kWh) N/C 5.5 4.9 4.7 4.6 4.6 4.4 4.5Water consumption per overnight stay (liter) N/C 168 166 146 146 145 136 137CO 2compensationPercentage compensated overnight stays – – – – – – 27.8% 57.2%Compensation contribution to myclimatein CHF – – – – – – 65,406 127,490RevenueOperating revenue in millions CHF 17.51 20.45 23.89 28.69 32.16 36.29 40.68 40.53Bed revenue in CHF 2,319 2,560 4,709 6,160 6,612 6,865 7,843 8,254Revenue per overnight stay in CHF N/C 36.44 41.68 48.60 48.93 49.90 51.81 54.19Bed occupancy (own hostels) 43.3% 38.2% 43.9% 45.1% 49.1% 49.5% 52.4% 52.7%ResultCash flow in millions CHF 4) 1.78 2.00 4.28 6.53 7.16 8.95 10.45 10.58Liquidity ratio III 174% 133% 98% 127% 130% 132% 112% 123%Organisational capital 18.7% 1% 7.4% 31.2% 33.8% 30.6% 24.6% 31.7%Return on equity in % – – – – 1% 2% 3% 3%Return on equity in CHF – – – – 709,638 1,397,389 2,327,983 2,476,313ProductivityProductivity per employee in CHF 81,455 88,470 125,926 143,090 149,626 154,557 161,046 162,097Total value creation in CHF N/C 10,782,865 13,096,859 15,311,628 17,158,077 19,603,603 21,194,567 21,405,379Value creation for employees in CHF 9,140,613 10,324,851 11,643,355 13,421,261 14,881,066 16,987,504 18,112,930 18,301,369Value creation for the public sector in CHF N/C 1,134,541 1,046,925 1,179,031 1,420,486 1,757,230 2,025,707 2,006,482Value creation residual in the organisationin CHF N/C - 676,527 406,578 711,336 856,525 858,869 1,055,930 1,097,529Legal compliancePunished legal violations N/C 0 0 0 0 0 0 01) First fiscal year following merger of 14 independent districts2) Start of reorganisation3) Initial implementation of strategic planning4) Before allocations and depreciationsN/C Not collected37

Balance sheetAs at 31 December Notes in 2009 2008Assetsannex in CHF in % in CHF in %Current assetsLiquid assets 9,096,054.65 70.7 9,835,247.34 70.1Receivables from third parties 518,735.64 4.0 515,959.12 3.7Receivables from related parties 6,994.75 0.1 19,098.25 0.1Delcredere -76,007.00 -0.6 -43,299.00 -0.3Accounts receivable trade 1 449,723.39 3.5 491,758.37 3.5Other receivables 290,811.19 2.3 334,910.84 2.4Inventories, goods 377,926.96 2.9 373,222.46 2.7Inventories, fuel 265,152.18 2.1 355,311.82 2.5Allowance, inventories -128,615.00 -1.0 0.00 0.0Inventories 2 514,464.14 4.0 728,534.28 5.2Prepaid expenses 240,459.58 1.9 177,223.88 1.3Current assets 10,591,512.95 82.3 11,567,674.71 82.5Fixed assetsVehicles 106,190.60 0.8 159,262.70 1.1Equipment 929,735.05 7.2 967,866.10 6.9Tangible assets 3 1,035,925.65 8.0 1,127,128.80 8.0Holdings 2.00 0.0 4.00 0.0Financial assets 4 2.00 0.0 4.00 0.0Free assets 1,035,927.65 8.0 1,127,132.80 8.0Loan “Valbella” to related party 203,490.00 1.6 232,560.00 1.7Loan “Davos” to related party 1,040,000.00 8.1 1,100,000.00 7.8Earmarked loans to related parties 5 1,243,490.00 9.7 1,332,560.00 9.5Earmarked assets 1,243,490.00 9.7 1,332,560.00 9.5Fixed assets 2,279,417.65 17.7 2,459,692.80 17.5Assets 12,870,930.60 100.0 14,027,367.51 100.038

As at 31 December Notes in 2009 2008Liabilitiesannex in CHF in % in CHF in %Outside capitalThird-party liabilities 1,623,784.70 12.6 2,598,247.35 18.5Liabilities to related parties 1,752,607.23 13.6 2,473,317.48 17.6Accounts payable trade 6 3,376,391.93 26.2 5,071,564.83 36.2Prepayments from guests 2,526,069.50 19.6 2,591,275.20 18.5Miscellaneous short-term liabilities 7 362,541.00 2.8 306,560.05 2.2Other liabilities 2,888,610.50 22.4 2,897,835.25 20.7Deferrals, member contributions 1,144,801.25 8.9 1,056,661.10 7.5Other transitory deferrals 1,206,483.70 9.4 1,296,802.75 9.2Deferrals 8 2,351,284.95 18.3 2,353,463.85 16.8Short-term outside capital 8,616,287.38 66.9 10,322,863.93 73.6IT developments 0.00 0.0 40,000.00 0.3Assurance of guarantee risks 175,500.00 1.4 175,500.00 1.3Provisions 9 175,500.00 1.4 215,500.00 1.5Long-term outside capital 175,500.00 1.4 215,500.00 1.5Outside capital 8,791,787.38 68.3 10,538,363.93 75.1Accumulated capitalFunds for climate projects 0.0 0.0 32,743.05 0.2Earmarked funds 10 0.0 0.0 32,743.05 0.2Accumulated capital 0.0 0.0 32,743.05 0.2Organisational capitalCapital as at 1 January 2003 1,465,631.02 11.4 1,465,631.02 10.4Acquired free capital 1,990,629.51 15.5 1,423,945.62 10.2Free funds 0.00 0.0 0.00 0.0Association capital 3,456,260.53 26.9 2,889,576.64 20.6Annual result 622,882.69 4.8 566,683.89 4.0Organisational capital 4,079,143.22 31.7 3,456,260.53 24.6Liabilities 12,870,930.60 100.0 14,027,367.51 100.039

Sta.Maria Val Müstair Youth Hostel (GR)

Statement of accountsFrom 1 January to 31 December Notes in 2009 2008Operating revenueannex in CHF in % in CHF in %Restaurant revenue 13,825,016.90 34.1 13,998,169.71 34.4Merchandise revenue 1,178,000.73 2.9 1,158,074.66 2.8Restaurant and merchandise revenue 15,003,017.63 37.0 15,156,244.37 37.3Lodging revenue 22,228,349.72 54.8 22,385,341.77 55.0Other service revenue 586,846.61 1.4 528,098.63 1.3Service and lodging revenue 11 22,815,196.33 56.3 22,913,440.40 56.3Annual member contributions 2,033,816.19 5.0 1,899,289.58 4.7Single-day member contributions 706,939.19 1.7 934,655.85 2.3Member contributions 12 2,740,755.38 6.8 2,833,945.43 7.0Benefactor contributions 79,704.00 0.2 47,744.55 0.1Earmarked contributions 361,995.32 0.9 200,000.00 0.5Benefactor contributions 13 441,699.32 1.1 247,744.55 0.6Franchise fees 186,210.24 0.5 173,247.02 0.4Administrative contribution, related parties 70,000.00 0.2 70,000.00 0.2Miscellaneous operating revenue 33,570.56 0.1 40,973.40 0.1Other operating revenue 289,780.80 0.7 284,220.42 0.7Allowances -416,470.39 -1.0 -410,220.78 -1.0Commissions, credit cards and Reka -225,410.11 -0.6 -261,851.85 -0.6Reservation provisions -65,828.73 -0.2 -71,597.74 -0.2Losses from receivables -56,917.73 -0.1 -11,712.39 0.0Decrease in profits -764,626.96 -1.9 -755,382.76 -1.9Operating revenue 40,525,822.50 100.0 40,680,212.41 100.042

From 1 January to 31 December Notes in 2009 2008Operating expensesannex in CHF in % in CHF in %Restaurant expenses -4,004,335.19 -9.9 -3,914,272.84 -9.6Goods expenses -941,911.80 -2.3 -940,985.65 -2.3Material expenses -595,625.41 -1.5 -587,070.50 -1.4Third-party services -667,089.82 -1.6 -740,491.36 -1.8Expenses for materials, goods and third-party services 14 -6,208,962.22 -15.3 -6,182,820.35 -15.2Wages -14,759,508.79 -36.4 -14,791,787.56 -36.4Social benefits -2,388,245.40 -5.9 -2,298,137.65 -5.6Other personnel expenses -468,189.75 -1.2 -448,091.13 -1.1Work services, third-party -685,424.65 -1.7 -574,913.95 -1.4Personnel expenses 15 -18,301,368.59 -45.2 -18,112,930.29 -44.5Rental and leasing expenses, third-party -438,601.15 -1.1 -389,063.25 -1.0Rental and leasing expenses, related party -9,197,267.00 -22.7 -9,138,263.35 -22.5Other space expense -29,689.70 -0.1 -12,087.55 0.0Maintenance of buildings and installations -522,634.95 -1.3 -826,027.33 -2.0Employee contributions, lodging 550,899.10 1.4 561,341.15 1.4Space expenses 16 -9,637,293.70 -23.8 -9,804,100.33 -24.1Maintenance, repairs, replacements and leasing -708,086.76 -1.7 -715,351.58 -1.8Vehicle and transport expenses -140,418.55 -0.3 -151,741.11 -0.4Property insurance and taxes -262,792.95 -0.6 -268,901.93 -0.7Energy and disposal expenses -1,826,304.63 -4.5 -1,904,846.08 -4.7Administrative expenses -1,329,849.93 -3.3 -1,201,701.92 -3.0Advertising expenses -1,033,761.36 -2.6 -1,131,135.88 -2.8Miscellaneous operating expenses -43,297.46 -0.1 -241,296.80 -0.6Other operating expenses -5,344,511.64 -13.2 -5,614,975.30 -13.8Depreciation 3 -474,646.15 -1.2 -489,246.22 -1.2Operating expenses 17 -39,966,782.30 -98.6 -40,204,072.49 -98.8Operating result 559,040.20 1.4 476,139.92 1.2Result due to disposal of tangible assets 1,800.00 0.0 0.00 0.0Financial expense -44,898.33 -0.1 -59,246.51 -0.1Financial revenue 106,940.82 0.3 149,790.48 0.4Financial result 62,042.49 0.2 90,543.97 0.2Regular annual result 622,882.69 1.5 566,683.89 1.443

Cash flow statementFrom 1 January to 31 December 2009 2008in CHF in CHFAnnual result 622,882.69 566,683.89Depreciation 474,646.15 489,246.22Allowances for inventories 128,615.00 0.00Allowances for financial assets 2.00 0.00Allowances, earmarked loans to related parties 29,070.00 29,070.00Creation/liquidation of provisions -40,000.00 -40,000.00Earmarked donations for climate projects 0.00 130,813.25Earmarked contributions for climate projects -32,743.05 -98,693.60Increase/decrease in accounts receivable trade 42,034.98 -116,694.67Increase/decrease in other receivables 44,099.65 -93,397.89Increase/decrease in inventories 85,455.14 -156,167.58Increase/decrease in prepaid expenses -63,235.70 -33,555.80Increase/decrease in accounts payable trade -1,695,172.90 2,819,367.79Increase/decrease in other liabilities -9,224.75 696,347.28Increase/decrease in deferrals -2,178.90 512,774.02Cash flow from operating activities -415,749.69 4,705,792.91Investments in tangible assets -383,443.00 -722,925.70Disposals of tangible assets 0.00 0.00Investments in earmarked loans to related parties 0.00 -1,100,001.00Disposals of earmarked loans to related parties 60,000.00 0.00Cash flow from investment activities -323,443.00 -1,822,926.70Net change in liquid assets -739,192.69 2,882,866.21Holdings of liquid assets on 1 January 9,835,247.34 6,952,381.13Holdings of liquid assets on 31 December 9,096,054.65 9,835,247.34Net change in liquid assets -739,192.69 2,882,866.21Statement of variation in capitalOpening balancein CHFAllocationin CHFInternal fundstransfer in CHFUsagein CHFClosing balancein CHFFunds from equity financingCapital as at 1 January 2003 1,465,631.02 0.00 0.00 0.00 1,465,631.02Acquired free capital 1,423,945.62 0.00 566,683.89 0.00 1,990,629.51Free funds 0.00 0.00 0.00 0.00 0.00Annual result 566,683.89 622,882.69 -566,683.89 0.00 622,882.69Organisational capital 3,456,260.53 622,882.69 0.00 0.00 4,079,143.22Funds from accumulated capitalFunds for climate projects 32,743.05 0.00 0.00 -32,743.05 0.00Accumulated capital with restrictive earmarking 32,743.05 0.00 0.00 -32,743.05 0.0044

Annex to the annual financial statementGeneral informationThe Swiss Youth Hostels’ accounting complies with the Swiss GAAP FER professional recommendations and gives a true and fair view ofthe assets, liabilities, financial position and profit or loss.The 2009 annual financial statement was prepared in accordance with the Swiss GAAP FER 21 professional recommendations for charitable,social non-profit organisations.In order to increase transparency, a new classification of the items was introduced in the 2009 annual financial statement. Figures for theprevious year were adjusted accordingly.Related partiesThe Swiss Foundation for Social Tourism, the Foundation for Youth Hostels in Switzerland and Hostelling International Marketing GmbHare deemed to be related parties. All substantial transactions are disclosed in the annex to the annual financial statement.No contractual relations of any sort exist with members of the executive board of the Swiss Youth Hostels, the trustees of the Swiss Foundationfor Social Tourism, the trustees of the Foundation for Youth Hostels in Switzerland and Hostelling International Marketing GmbH.Valuation methodsLiquid assetsLiquid assets include cash on hand, postal cheque and bank account balances as well as checks assessed at their nominal values. Foreigncurrency balances are converted using the end-of-year conversion rate of the Swiss Federal Tax Administration.ReceivablesReceivables for services provided to third parties are understood after discounting the necessary allowances for delcredere risk.InventoriesInventories are valued at cost prices or lower market prices. The goods risk is taken into account with an allowance of 20% of the respectiveyear-end balance.Tangible assetsValuation occurs at procurement costs minus any applicable business depreciation. Depreciation is calculated on a straight-line basiswith the following useful life:Machines and equipmentFurnitureSmall itemsITVehicles8 years8 years3 years3 years5 years45

Scuol Youth Hostel (GR)

Explanatory notes on the balance sheet1. Accounts receivable tradeIn the del credere accounting, receivables that were older than 60 days on the balance sheet date were value-adjusted in full, while theremaining receivables were adjusted at a flat rate of 5%.2. InventoriesRisks associated with the storage of goods were valued in the amount of 20% of the goods inventory at year-end and fully deferred as anallowance.3. Tangible assets Book valueas at 01.01.Acquisitions Disposals Depreciation Book valueas at 31.12.Vehicles 159,262.70 0.00 0.00 53,072.10 106,190.60IT 203,356.25 81,179.75 0.00 147,029.50 137,506.50Machines / equipment 209,654.75 85,939.00 0.00 63,396.50 232,197.25Furniture 455,467.00 148,376.60 0.00 114,898.30 488,945.30Small items 99,388.10 67,947.65 0.00 96,249.75 71,086.00Tangible assets 1,127,128.80 383,443.00 0.00 474,646.15 1,035,925.654. Financial assetsIn September 2006, Hostelling International Marketing GmbH was founded with its headquarters in Zug. The Dutch hostel associationStichtig Stayokay and the Swiss Youth Hostels each hold a 50% share of this company. The nominal capital totals CHF 20,000, of which theSwiss Youth Hostels have a share of CHF 10,000. This nominal capital is valued at CHF 1 and is included in the holdings of related parties.Hostelling International Marketing GmbH is an organisation that is barred from full consolidation since it was founded exclusively for thepurpose of providing services to the national youth hostel associations.5. Earmarked loans to related partiesIn 2007, a loan earmarked for Valbella Youth Hostel was made to the Swiss Foundation for Social Tourism. It is amortised yearly by CHF29,070.In 2008, a loan earmarked for the purchase of Davos Youth Hostel was made to the Swiss Foundation for Social Tourism. This loan is subjectto regular interest and is amortised at an annual rate of CHF 60,000.6. Accounts payable tradeThe liabilities to related parties primarily include liabilities to the Swiss Foundation for Social Tourism.7. Miscellaneous short-term liabilitiesThe miscellaneous short-term liabilities primarily include liabilities to social security institutions.8. DeferralsThe deferrals for member contributions for the following year arise due to the rolling membership year.9. ProvisionsThe provision for future IT developments from 2008 was terminated in 2009 since it was possible to conclude further development of thevarious IT applications.The provision for guarantee risks remains in place for the assurance of contractual relations.10. Earmarked fundsThe fund created in 2008 for climate projects was terminated and transferred in full to the Swiss Foundation for Social Tourism, which itwill use exclusively for climate projects in Switzerland.48

Explanatory notes on the statement of accounts11. Service and lodging revenueIn 2009, 373,757 guests were lodged in our own hostels. On this basis, 747,798 overnight stays were recorded.12. Member contributionsThe membership as at 31 December 2009 (key date) totalled 103,404 persons.13. Benefactor contributionsThe earmarked contributions include CHF 261,995 for voluntary CO 2compensation paid by lodging guests of the Swiss Youth Hostels. Halfof the contributions are transferred to the myclimate foundation for financing climate protection projects worldwide and half to the SwissFoundation for Social Tourism for climate projects of the Swiss Youth Hostels.Moreover, a contribution of CHF 100,000 from the State Secretariat for Economic Affairs SECO (Innotour) is included for financing thecertification with the EU Eco-label and the Ibex Label, which is part of the consistent implementation of the Swiss Youth Hostels’ sustainabilitystrategy.14. Expenses for materials, goods and third-party servicesThe expenses for third-party services primarily include expenditures for external laundering and for management of the member database.15. Personnel expensesIn 2009, 250 full-time workloads were distributed among 375 permanent positions. Moreover, 72 temporary staff members were employed.16. Space expensesThe rental and leasing expenses to related parties include the rental expenses paid to the Swiss Foundation for Social Tourism (SFST). In2009, a return on the invested equity capital SFST of 3% (CHF 2,480,405) was factored into the calculation of the rental expenses.49

Further information17. Expense for service provision in accordance with Swiss GAAP FER 21 2009in CHFOperating expenses2008in CHFExpenses for materials, goods and third-party services - 6,208,962.22 - 6,182,820.35Personnel expenses - 16,093,392.82 - 16,140,127.60Space expenses - 9,314,938.15 - 9,312,841.08Other operating expenses - 4,726,685.17 - 4,819,545.53Depreciation - 358,986.70 - 375,676.37Total operating expenses - 36,702,965.06 - 36,831,010.93Administrative expensesPersonnel expenses, administration - 2,207,975.77 - 1,972,802.69Other administrative expenses - 940,182.02 - 1,286,689.02Depreciation - 115,659.45 - 113,569.85Total administrative expenses - 3,263,817.24 - 3,373,061.56Total - 39,966,782.30 - 40,204,072.49Administrative expenses as % of operating revenue 8.1% 8.3%Fire insurance value of tangible assets 2009in CHF2008in CHFEquipment in administrative office 500,000 500,000IT, office equipment, communications equipment 802,000 830,000The remaining tangible assets are insuredas part of a joint policy with theSFST in the amount of CHF 15,910,000 16,491,000Liabilities to pension schemes 2009in CHF2008in CHFOccupational pension plan Credit 487,227Compensation to executive board membersIn 2009, compensation consisting of fees and reimbursement of expenses was paid to executive board members in the amount of CHF93,551. Of this amount, the President received CHF 63,457.Expense for fundraisingIn 2009, the expense for fundraising was CHF 7,500.Risk assessmentThe executive board and the management have instituted internal precautions in order to ensure conformity of the organisation’s annualaccounts with the applicable financial reporting requirements and to guarantee proper reporting. These precautions relate to modern accountingsystems and procedures as well as the preparation of the annual accounts. During the past fiscal year, the executive board andthe management did not identify any risks which could lead to a lasting or substantial impairment of the organisation’s assets, liabilities,financial position and profit or loss.50

Davos Youthpalace (GR)

Outlook and priorities for 2010The Swiss Youth Hostels expect to encounter a challenging business environment in 2010.Due to the strength of the Swiss franc, we expect that foreign demand will again be morestrongly impacted than demand from the Swiss market. Nevertheless, total sales as wellas overnight stays are still expected to increase slightly. Modifications to our products andservices, attractive package deals, quality-assurance measures and consistent implementationof our sustainability strategy are expected to make a contribution to this end.One priority is to attain complete certification of all of the youth hostels with the EU Ecolabeland the Ibex Label.Construction projects oriented towards sustainabilityAfter 16 months construction period, the Basel St.Alban Youth Hostel opened in March2010. In April 2010, St. Moritz Youth Hostel is closing for three months in order to realise acomplete energy-related renovation combined with expansion. During the summer months(July to October), part of the hostel will be open. Starting in December 2010, the renovatedyouth hostel will return to full operation with a capacity of 306 beds.In spring 2010, Dachsen am Rheinfall Youth Hostel is reopening after a one-year interruption.The castle grounds with access to the Rhine Falls as well as individual buildings werereconfigured and renovated. Unfortunately, however, no funds were made available to theyouth hostel as part of this major investment. We still hope that youth hostel guests, too,will enjoy some benefits during a subsequent investment phase by the Canton of Zurich.Renovation of Berne Youth Hostel represents another important project. Since responsibilityfor operating Berne Youth Hostel was taken over by the Holiday & Leisure Associationin 2007, we have worked along with the city of Berne to find solutions that would allow continuedoperation of this youth hostel in need of renovation. In recent months, the municipaland city councils have agreed to an application for partial funding. The cost of the entirerenovation project is estimated at around CHF 7 million. The planning phase will begin inthe coming months. Renovation and new construction are projected to begin in the autumnof 2011, with the youth hostel expected to reopen in the spring of 2013.For several other locations, our feasibility studies have generated clear results that are tobe developed into specific projects in 2010. In Saas-Fee, the only gap among our A locationswill be eliminated, and in Figino the main building will be entirely renovated and theadjacent building replaced. In the Bernese Oberland, project ideas are advancing towardsthe decision-making stage in parallel at the Adelboden, Bönigen-Interlaken, Lenk, Saanenand Zweisimmen locations. In other words, a year of very intensive planning is to be expected.54

Swiss Youth Hostels.Schaffhauserstrasse 14, 8042 Zurich.Phone 044 360 14 14. Fax 044 360 14 60.www.youthhostel.ch

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