TOURISM WHISTLER ANNUAL REPORT 2014 TABLE OF CONTENTS Tourism Whistler Overview3 Message from the Chair4 Message from the President & CEO 5 Board of Directors6 Overall Strategic Direction6 Paid Room Nights Versus Resort Inventory 7 Seasonal Occupancy7 Key Geographic Markets7 DEPARTMENTAL OVERVIEWS Marketing Services8 Partnerships and Events9 Market Development – Travel Trade 10 Market Development – Travel Media 11 Communications12 Research13 Member Relations14 Conference Sales15 OPERATIONS CENTRE OVERVIEWS Whistler Conference Centre16 Whistler Golf Club17 Visitor Services18 Whistler.com Central Reservations19 FINANCIALS Performance Indicators and Funding Breakdown 20 Audited Financial Statements 21 - 28 Tourism Whistler, in its ongoing efforts to reduce the organization’s environmental footprint, no longer prints the annual report. The full-length version is available online at www.whistler.com/members. A printed version is available upon request by emailing [email protected]. 2 Annual Report 2014 Purpose: “To connect the world to Whistler, and promote it as the year-round mountain resort of choice.” Mission: “To inspire the world to experience Whistler, time after time.” Vision: “To be the world’s most recognized, visited and valued four-season, sustainable, mountain destination.” TOURISM WHISTLER OVERVIEW • Legally known as the Whistler Resort Association, Tourism Whistler is a not-for-profit legislated membership organization representing more than 7,000 Members, Commercial Tenants and Affiliates who own, manage or conduct business on Resort Lands • Formed in 1979 in response to a recommendation by the provincial government to create a marketing and sales body to promote Whistler as a tourism destination • Responsible for developing coordinated strategies in the areas of marketing and sales to promote and drive room nights to the resort • Seven elected individuals and five appointees represent the various sector interests on the 12-member Board of Directors; the activities of Tourism Whistler are further directed by its membership through bylaws that are approved by the municipal council and the provincial Ministry of Municipal Affairs • Membership assessments are the primary source of funding for the world-wide marketing and sales initiatives that Tourism Whistler manages and directs, supplemented by net income from operating centers, sponsorship and funding 3 Annual Report 2014 MESSAGE FROM THE CHAIR PARTNERING TO PROVIDE VALUE TO MEMBERS As a resort, Whistler strives for excellence and it makes sense that as the marketing and sales organization representing the resort, Tourism Whistler is always looking for ways to raise the bar. Tourism Whistler’s Board of Directors and its executive team work tirelessly to engage industry leaders, ensuring that we are monitoring key trends and staying ahead of the curve – as difficult as that can be with limited resources and an extremely competitive environment. In 2014, we heard from some of our key tourism associates about the importance of partnerships when it comes to maximizing our reach and achieving our business goals. For example: • • • Representatives from Rocky Mountaineer shared thoughts on the importance of marketing investment – specifically reminding us of how marketing investments create strong returns and that partnership programs can result in greater investment and therefore, greater impact. Officials with the provincial tourism body – Destination BC – reminded us of the importance of true partnerships and that while there is no arguing the fact that partnerships pay off, we must remember to “walk the walk” – we have to create true partner interdependencies that are beneficial and rewarding to all parties. We learned that organizations like YVR are – for the first time – looking at growing their partnerships within the travel and tourism industry while the Vancouver Convention Centre is expanding into new fields of interest. At all levels, the board, executive and staff at Tourism Whistler concur with our partners and will continue to work together to maximize and leverage the best opportunities. Speaking of partnerships, we commend the Resort Municipality of Whistler mayor and council and the provincial government for their support of tourism through the Resort Municipality Initiative and the Economic Partnership Initiative. In Whistler, we see tremendous efforts between our local and provincial partners and we are seeing results. The EPI benefits Whistler and through this funding we have been able to realize tangible benefits such as the Rainbow Theatre renovation and the addition of programs like family après, expanded animation and growth in festivals like Cornucopia Whistler, presented by BlueShore Financial, which grew to 10 days in 2014. Funding continues to be a priority for the Board of Directors – not only in the partnerships that the team works on today, but also in finding new funding streams, as tourism is exceptionally competitive – and marketing effectively to international markets, and to both leisure and meetings segments, is expensive. We appreciate the investment our members make to the organization, but we are always committed to growing that investment through additional funding sources. Whistler recorded some significant results in 2014; marking back-to-back record-breaking seasons with winter 2013/14 and summer 2014 and partnerships played a significant role in this success. Our collective hard work is paying off but it will be important to continue to focus on building relationships that will lead us into the future. Saad Hasan, Chair, Tourism Whistler Board of Directors 4 Annual Report 2014 MESSAGE FROM THE PRESIDENT & CEO MAXIMIZING SUCCESS AND SHIFTING FOCUS TO NEED PERIODS Whistler is in the enviable position of having achieved strong results in recent years – marking record-breaking business levels in winter 2013/14 and summer 2014. It is important to note that while the resort was buoyed by industry trends such as resurging U.S. and U.K. economies, and an increase in consumer demand for travel, we did not come by our success by chance. Tourism Whistler delivers research-fueled, strategic initiatives that help grow awareness, engagement and sales – in collaboration with our resort partners. Whistler has successfully attracted visitors during peak periods, ensuring near-full capacity during high season months and weekends. Our focus in 2014 has therefore been to build mid-week and shoulder season business, in order to achieve the goal of increasing year-round occupancy, and paving the way for an economically sustainable resort. With this in mind, Tourism Whistler prioritized a number of strategic initiatives to drive occupancy during need periods. Leisure: • Provided sales training and co-operative marketing support to international travel trade partners, promoting ski vacations and summer touring in our destination markets of Canada, the U.S., U.K., Germany, Japan, China, Mexico and Brazil – markets which drive longer lengths of stay and fill mid-week periods. • Launched awareness-building marketing campaigns into National Canada, National U.S., Washington State, California, Texas, U.K. and Australia, promoting winter and summer experiences. • Created two new niche marketing programs, in partnership with member hotels and businesses, to attract Nordic and Luxury travellers. • Applied to Destination BC’s new Cooperative Marketing Program to access incremental funds for a regional mountain biking campaign promoting the Sea to Sky Corridor. Events: • Proactively supported and marketed shoulder season events (World Ski and Snowboard Festival in April, Go Fest in May, Tough Mudder in June, Gran Fondo and Beer Fest in September, and Cornucopia in November) • Worked with Subaru IRONMAN Canada to move IRONMAN from late August, to the more optimal date of late July when there is greater hotel availability. • Helped secure a new spin-off, female-oriented Tough Mudder event, called Mudderella, beginning September 2015. Meetings & Incentive: • Focused our efforts on growing conference and group business in spring, summer and fall, securing large incentive groups, such as ADP, and large association and corporate groups, such as Godzilla, in concert with member hotels. • Secured and hosted two important technology conferences in 2014, TEDActive and GROW, which will help put Whistler on the map as a leading edge, connected destination. As a result of these and other efforts, we are well on our way to achieving our goal of increased year-round occupancy, seeing a yearover-year increase in paid occupancy of two points in winter 2013/14, and four points for summer 2014. Beyond Whistler, we know that driving tourism is a nation-wide issue. Working with a National Tourism Roundtable, we helped lead the Deloitte-commissioned Tourism Advantage Report through 2014. The report, delivered to the federal government in early 2015, outlined key challenges facing tourism in Canada, regarding air access, visitor visas and national marketing, and provided specific recommendations for economic growth. So far, the report has been applauded by both the federal Minister of Tourism, and the Chair of the National Tourism Caucus. We could not achieve our goals without the leadership of our Board of Directors, the efforts and investment of our valued partners (RMOW, WB, hotels, DBC, and more), the commitment of our talented staff, and the support of our membership. I would like to thank each of you for your ongoing efforts and contributions! Barrett Fisher President & CEO, Tourism Whistler 5 Annual Report 2014 BOARD OF DIRECTORS Tourism Whistler is governed by a 12-member Board of Directors – seven elected and five appointed. On behalf of Tourism Whistler Members, the Board of Directors establishes the vision, mission, objectives, key areas of focus and overall priorities for Tourism Whistler, contributes to and approves the annual business plan, approves operating and capital budgets and ensures continued financial viability and the fulfillment of the organization’s mission. ELECTED: APPOINTED: Single-Managed Small Lodging: Saad Hasan (Chair) Whistler Blackcomb: David Brownlie Stuart Rempel Multi-Managed Other Lodging: Ian Lowe Single-Managed Large Lodging: Norman Mastalir Multi-Managed Benchlands Lodging: Sue Chappel Multi-Managed Village Lodging: Jim Allard Resort Municipality of Whistler: Councillor Roger McCarthy (replaced by Mayor Nancy WilhelmMorden, following November, 2014 municipal election) Mike Furey Tourism Whistler President & CEO: Barrett Fisher Director-at-Large: Tony Cary-Barnard Commercial: Duane Hepditch OVERALL STRATEGIC DIRECTION 2014-2017 6 • Grow our Funding • Remove Barriers to Travel • Grow Destination Markets • Grow New Segments • Attract New Events • Attract Large Groups • Deliver Innovative & Effective Marketing Campaigns Annual Report 2014 PAID ROOM NIGHTS VERSUS RESORT INVENTORY Winter Room Nights Summer +10% +3% -16% +2% +8% -4% 98/99 99/00 00/01 01/02 +21% -2% -8% +13% -1% -8% +6% +18% -8% -1% +3% -7% -4% +5% +3% -17% +12% +2% +14% +6% -6% +6% -2% +1% +4% +8% +8% 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Inventory KEY GEOGRAPHIC MARKETS WINTER SUMMER Other 6% Other 5% †† Canada † United 13% ††Canada States 15% †United 11% States 11% Europe 11% Europe 8% Aisa Pacific 11% Aisa Pacific 7% Regional Market 43% Regional Market 58% (Washington State and British Columbia) (Washington State and British Columbia) † Does not include Washington State †† Does not include British Columbia CORE MARKETS SECONDARY MARKETS EMERGING MARKETS Canada Germany China United States Mexico India United Kingdom Japan Brazil Australia Alberta Quebec Texas 7 Annual Report 2014 “At Origin, we work with outdoor and tourism brands from around North America, and I can honestly say that working for Tourism Whistler is one of our greatest privileges. It is an organization that truly understands what it takes to create a world-class brand …” Danielle Kristmanson Principal and Creative Director Origin Design + Communications MARKETING SERVICES Tourism Whistler’s Marketing Services department executes the organization’s direct-to-consumer marketing programs and leads the Whistler brand strategy. Through integration of advertising, collateral, promotions, web, social media and email marketing tactics, the department drives resort familiarity and room nights. Greater effort has focused on partnerships and through cooperative efforts, Tourism Whistler developed niche partner campaigns in the areas of luxury, events, golf, bike and Nordic. HIGHLIGHTS: • Provided tools and support for Whistler brand guidelines to provide strong consistency across all departments, channels and seasons • Achieved over 2.98 million annual web visits to whistler.com, an increase of 6% over 2013 • Achieved over 8.1 million video views of the summer commercial, and over 9.2 million video views of the winter commercial • Supported 27 promotions through third party partners, generating exposure valued at over $1,727,000 • Added 31,000 new names to the email database • Published 88 blog posts, generating over 334,000 pageviews (25% increase over 2013) • Grew social following across all channels: Facebook growing by over 25,000 new fans for a total 86,293 fans at year end; Twitter added almost 6,000 new followers for a total 27,265 followers at year end • Executed integrated campaigns utilizing a variety of media channels to engage with key target audiences and markets • Expanded video and photo library for campaign, member and media use To view the latest print, television and online ads produced by Tourism Whistler, visit whistler.com/members 8 Annual Report 2014 “It is a great achievement for Whistler that – with all the wonderful ski resorts in the world to choose from – Ultratravel readers have voted Whistler as the best in the 2014 reader survey.” Nick Perry Chairman Ultratravel Unlimited PARTNERSHIPS AND EVENTS The Partnerships and Events department is responsible for establishing and building strategic alliances with key corporate, resort and industry partners, and for successfully securing targeted event, marketing and communications opportunities to grow Whistler’s brand awareness as well as marketing reach and frequency. The department is the first point of contact for third-party event producers, assessing applications via the Whistler Event Toolkit, leading the Whistler Events Working Committee, implementing the Whistler Event Tourism Strategy, liaising with the Events Whistler Executive Committee and participating in the RMOW’s Festivals, Events and Animation (FE&A) Working Group. In 2014, efforts were focused on growing partnerships and events that would drive mid-week and shoulder season business to the resort, along with increased support for ‘homegrown’ events that are endemic to Whistler’s core competencies. HIGHLIGHTS: • Assisted event producers to deliver successful events in Whistler by facilitating resort-wide support for more than 100 events. Major accomplishments include: • Supported the launch of the inaugural GO Fest, Whistler Great Outdoor Festival in May on the Victoria long weekend • Facilitated the hosting of a successful Subaru IRONMAN Canada in Whistler, including the shifting of the event into July from August • Supported & promoted the expansion of RBC GranFondo Whistler from one day to two days • Supported the continued growth and development of Cornucopia across two weekends in November • Created opportunities for Tourism Whistler member businesses to maximize the potential benefits of events through the business engagement program (e.g. IRONMAN restaurant voucher program) • Continued to improve the suite of tools for consumers, event producers and resort partners including the events calendar and event toolkit on whistler.com, as well as an interactive event listing on the member website • Worked in collaboration with Whistler merchants for the revamp of Dine in Whistler to encompass more resort products and launch Indulge in Whistler as a May promotional period to drive occupancy during the shoulder season • Negotiated and secured contra exchanges that delivered more than $225,000 of advertising value (e.g. Pacific Newspaper Group, Outside TV, Innovation & Tech) 9 Annual Report 2014 “Thank you all for a wonderful trip, and all the work you guys put into making our time in Whistler so amazing was much appreciated. The itinerary was brilliant, we really got to experience the best of the village, on and off the mountain… The hotels we inspected really gave us a wonderful indication of the many options available to our clients. Whistler certainly is a mountain for everyone – and skiing is only the start of it. As we have learnt there is so much for guests of all ages and abilities to enjoy and I am sure I am speaking on all our behalf when I say that I can’t wait to share my enthusiasm and knowledge with my clients.” Toni Long Travel Plan (Australia) MARKET DEVELOPMENT – TRAVEL TRADE In 2014, the Travel Trade department focused on activities that resulted in the highest rate of return by not duplicating member efforts while adding value to member activities. Sales efforts were focused on high-producing, engaged tour operators, travel agents and online partners in key destination markets: United States, Canada, United Kingdom, Australia, Japan, Germany and Mexico. Sales efforts grew in the emerging markets of Brazil, China and India through specific ski agent training with key accounts in Brazil; launching the Book Early and Save ski packages in China, attending the International Luxury Travel Market; attending the Canadian Tourism Commission’s Showcase Canada in China as well as their Focus India event; and hosting in-resort FAM opportunities. The team continues to lead the strategic, resort-wide winter promotion strategy, which is well received by partners in destination markets as well as our members. Through all sales activities; the team strived to generate leads and referrals for members. HIGHLIGHTS: • Invested $265,000 in marketing coop campaigns with 25 key account partners. On average, dollars were leveraged 1:5 through industry partners • Hosted 56 familiarization tours for more than 520 clients from top-producing tour operators and travel agents • Conducted 8 sales missions • Participated in 6 trade shows and 5 consumer ski shows in primary markets • Hosted client receptions at two large travel trade shows: Rendezvous Canada and Canada’s West Marketplace • Hosted two receptions at Mountain Travel Symposium 2014 in preparation to host the event in Whistler in April 2015 10 Annual Report 2014 “Thank you forever for the wonderful trip to Whistler! What a perfect experience from beginning to end. Loved it! Such a lovely place with totally amazing people. I look forward to writing the story.” Cynthia Calvert Editor and Owner Tribune Newspapers Houston, TX MARKET DEVELOPMENT – TRAVEL MEDIA The Travel Media department aligns well with the Travel Trade department in generating excitement for Whistler by working to enhance the profile and awareness of Whistler to consumers, through travel media coverage. The department focuses on generating positive editorial coverage for Whistler in print, broadcast, online and social channels and attempts to capture multi-channels in each visit. Key programs include hosting in-resort media visits, story pitches to media and creating efficient and effective communications tools such as the online media room and image libraries. Attention is placed on leveraging Whistler’s relationships among existing media, new media contacts, and industry partners. In 2014, the team continued to take a strategic and proactive approach with media to deliver target results. HIGHLIGHTS: • Hosted 371 media outlets (313 people) in-resort with the support from members • Conducted in-market media missions in Seattle, Mexico, Germany, New York, Washington DC, Toronto, Calgary • Generated over $30 million in ad equivalency, reaching 1.9 billion circulation. Highlights include: • Print: The Telegraph, Globe and Mail, Vancouver Sun/Province, Ski Magazine, New York Times, National Geographic Traveller USA, Hemispheres Magazine, Best Travel Media (China), El Gourmet (Mx), Daily Mail (UK), Golf Magazine, Golf Digest, Washington Post, Travel + Leisure China, Miami Herald • Broadcast: Canada AM, ET Canada, etalk, Canada AM, CCTV Discovery Channel China, Rick Mercer Report, NBC Sports (Redbull Joyride), Breakfast Television • Online: USA Today, New York Time, Vancouver Sun/Province, Huffington Post (UK, CA, USA), Yahoo! News, The Telegraph (UK), Pinkbike • 11 Blogs: New York Times, Forbes Travel Guide Annual Report 2014 “When you think of British Columbia, Whistler may be one of the first places that come to mind; given the town’s natural beauty and incredible mountains, it’s not surprising.” Natasha John USA Today COMMUNICATIONS The Communications department is responsible for overseeing organizational-wide communications for Tourism Whistler on corporate, resort and public relations issues. The department’s role is to ensure aligned, organizational and resort-wide messaging and communications efforts are in place to maximize positive exposure for Whistler, manage and mitigate negative perception issues that may create barriers to travel, and build an understanding and support of Tourism Whistler’s role, initiatives and results. In 2014 the Communications department continued its focus on initiating proactive news media outreach tactics, producing media releases and messaging documents while responding to and tracking all news media enquiries including the coordination of media interviews and information gathering. HIGHLIGHTS: • Produced and distributed 40 media releases on a variety of topics to targeted media outlets • Supported internal departments, resort partners and event producers with ongoing communications issues and outreach • Provided editorial support for Tourism Whistler marketing initiatives such as the This Week in Whistler advertorial project, as well as organizational-wide messaging documents • Facilitated numerous news media interview requests with local, regional, national and international print, broadcast and online media on a variety of resort and tourism-related topics. • Hosted the annual Editorial Board Session with local media representatives • Led local, national and international issues management efforts on behalf of resort • Represented Tourism Whistler on a number of resort-wide committees, providing communications leadership and support • 12 Created resort-wide strategic messaging documents Annual Report 2014 ““… Walk down the Village stroll. Hear the voices heading toward the gondola: Chinese, Russian, Japanese. Lean in, though, and you’ll also hear a babel of young ski bums who give the place its real vibrancy: Poles. Aussies. Kiwis. Brits. South Africans …” Christopher Solomon New York Times RESEARCH The Research department collects, analyzes and shares information that provides Tourism Whistler members and internal departments with research to help develop effective business, sales and marketing strategies. Based upon key business indicators and research findings, opportunities to enhance and expand Whistler’s tourism offerings are identified, with the aim of attracting new guests to the resort and increasing repeat visitation. Research resources are focused in two distinct areas: tracking the performance and economic health of the resort; and understanding target markets, trends, attitudes and perceptions. In 2014, the Research department continued to focus on evaluating pace and resort performance, understanding the visitor experience and identifying opportunities for improvement, monitoring key competitors (pricing, programs and performance) and increased awareness of economic indicators and industry trends. HIGHLIGHTS: • Resort performance and visitation trends were monitored through seasonal visitor surveys, monthly performance tracking, festival surveys and forward booking tracking. In 2014, significant emphasis was on evolving these programs to provide greater and more accurate insight into consumer behaviour and resort performance. Some of the highlights include: • More than 9,000 visitors were surveyed in the resort, to understand the demographics, behaviour, attitudes and satisfaction of visitors • Custom research projects were undertaken for six different festivals and events • Additional research programs were developed to support the Resort Municipality of Whistler’s Festival, Events and Animation program • To support Tourism Whistler’s entry into the Texas market, a research study was undertaken to better understand the brand perceptions, preferences, travel behaviour and demographics of Texan skiers and snowboarders • Tourism in Canada — Seizing Economic Advantage study, conducted by Deloitte and funded by Tourism businesses and organisations from across Canada, was project managed by the research department • The team conducted a complete redesign of the Seasonal Forecast Model and the Visitor Estimation Model, ensuring the models reflect shifting global trends and growth in resort business levels • The Research department continued to participate and present at appropriate member and association meetings. A substantial amount of research has now been made available to members via the website at www.whistler.com/ members 13 Annual Report 2014 “As a new member of Tourism Whistler, I’ve been amazed at the wealth of information that TW offers! Thanks! ” Anonymous comment received through member survey MEMBER RELATIONS The Member Relations department is responsible for conducting effective two-way communications between Tourism Whistler and all of its members (including commercial tenants, affiliates and property owners). The team is an advocate of Tourism Whistler when interacting with members, and represents members’ interests in discussions on Tourism Whistler directions and strategies. In 2014, the Member Relations department expanded efforts to more effectively address the unique needs of both commercial and private members. The team connects Members to the staff and resources that can help them best enhance the guest experience, drive room nights and effectively leverage the actions and projects of Tourism Whistler. HIGHLIGHTS: • Member satisfaction of Tourism Whistler and services provided, as measured through the annual member survey, increased to 86% for business members • Redesigned the member website to include more intuitive navigation, improved tracking, and better access to information and tools for member usage • Created the new online Business Directory tool allowing businesses to manage and update their customer facing information on whistler.com • Assisted in the creation of the Whistler Association of Retailers & Merchants to represent the large commercial sector lacking a unified voice • Improved systems for Commercial Tenant declarations leading to increased engagement • Increased involvement and engagement with members and member sectors: • Hosted 4 All Member meetings with 100+ attendees • Attended monthly sector meetings with sector-specific associations including the Hotel Association of Whistler, the Whistler Restaurant Association, the Whistler Bar and Nightclub Association and the Whistler Association of Retailers & Merchants 14 • Conducted 85 one to one meetings with current and prospective members • Two newsletters per month to approximately 1000 subscribers – average 35% open rate • 19,205 web visits on the member website in 2014, an increase of 2.6% Annual Report 2014 “Though Whistler’s majestic mountain views and glacial lakes are a serene summer backdrop, I, like most, didn’t come here for a lazy mountain retreat, but for a taste of adventure …” Kathleen Rellihan Travel Channel online CONFERENCE SALES The Conference Sales team achieved 2014 production sales (actualized business in 2014) of $2.6M in Whistler Conference Centre revenue versus a goal of $2.4M. The team also assisted in generating 60,555 room nights to a target of 59,000 room nights. Both revenue and room night targets for 2014 and all future years were achieved for a grand total of 88,264 room nights to a goal of 87,000 room nights. For all future years, the team generated $2.8M for Whistler Conference Centre revenues versus a target of $2.4M. ADP, a large incentive program for August of 2015, is responsible for over $600K of this revenue. Results improved over 2013 measures with increased interest in Whistler as a meetings destination primarily by corporate and incentive markets, however, Whistler is also popular with association business. Barriers such as air access, flight costs, distance from Vancouver International Airport to Whistler and value perception continue to impact the sales team’s ability to close the sale. New in 2014, however, Tourism Whistler received financial support through the Resort Municipality of Whistler’s Economic Partnership Initiative, which allowed the organization to offset some of the financial barriers in attracting large groups. An additional 11 groups – representing 14,775 room nights – were secured due to these incentive funds. The strengthening U.S. economy and a weakening Canada dollar also helped grow room nights and revenue for the resort. HIGHLIGHTS: • Hosted 78 groups (including 10 festivals) at the Whistler Conference Centre • Hosted and participated in 18 successful client events and sales missions in key markets • Facilitated approximately 30 site inspections and hosted & participated in 6 familiarization tours • Attended 9 major networking conferences • Exhibited at 12 industry tradeshows • Achieved a 50% lead conversion rate and secured the following significant business in 2014: • Jack in the Box representing 1,736 room nights for June 2014 • Smashing Conference representing 1,392 room nights for December 2014 • BC Principals & Vice Principals Association representing 1,250 room nights for May 2015 • Automated Data Processing representing 10,467 room nights for August 2015 • TRIUMPH representing 1,329 room nights for September 2015 • Gamestop, Inc. representing 1,000 room nights for September 2015 • Omeract representing 1,015 room nights for May 2016 • Canadian Association of Emergency Physicians representing 2,450 room nights for June 2017 • 15 Financial Executives International Canada representing 1,000 room nights for June 2017 Annual Report 2014 “Next month, when some of the world’s brightest technology entrepreneurs and investors arrive for B.C.’s fifth annual GROW Conference, local leaders will meet with them to discuss how to make Whistler the most connected resort community in the world.” Rick Spence Financial Post WHISTLER CONFERENCE CENTRE The Whistler Conference Centre is owned by the Resort Municipality of Whistler and is managed and operated by Tourism Whistler. The conference centre is a vital asset to Whistler, driving resort-wide event business that benefits Whistler as a whole and provides meeting space to those hotels that do not have sufficient space to house “under-one-roof” business. HIGHLIGHTS: • Completed a $500K renovation to Rainbow Theatre. Upgrades included new carpet, theatre style seats, acoustic paneling, built in retractable screen, surround sound system, LCD projector and state of the art video conferencing equipment • Continued energy reduction initiatives successfully reduced electrical and natural gas consumptions by 7.9% over 2013 figures • The operating teams at Whistler Conference Centre and maintained a 90% landfill diversion rate despite an increase in business at WCC • Finalized ‘Enteliweb’ digital monitoring system for the conference centre HVAC systems to enhance client comfort and facilitate further potential for energy reductions 16 Annual Report 2014 “We played the course with our friends who were visiting from the US. The day began with a phone call telling us that there was a frost delay and to take our time arriving. When we arrived at the course, the staff in the pro-shop and on the course was extremely pleasant, helpful and professional. We had a great day on the course which was in excellent condition and the pace of play moved well, even though the course was very busy. The staff is well trained and committed to making the golfers enjoy their day. I would highly recommend playing at Whistler Golf Club.” Randy Youngman, California Golf WHISTLER GOLF CLUB Tourism Whistler manages and operates the municipally-owned Whistler Golf Club. The Whistler Golf Club continues its commitment to increasing Whistler’s golf market by offering exceptional guest service, improved facilities, and by participating in targeted marketing and sales initiatives, including an engaging social media program. The Whistler Golf Club works with Nicklaus North Golf Course, the Fairmont Chateau Whistler Golf Club, Big Sky Golf and Country Club and in-resort partners to enhance Whistler’s reputation as the premier mountain golf destination in North America. In 2014 exceptional weather, great course conditioning and guest experience scores lead to strong financial results for the facility. HIGHLIGHTS: • Hosted 23,038 golf rounds • Secured 4,235 group rounds for the season • Achieved overall guest satisfaction scores of 91.8% in 2014 • Implemented an early booking strategy • Attended the International Association of Golf Tour Operators (IAGTO) convention 17 Annual Report 2014 “Long known as a powder junkie’s utopia, the town’s gorgeous terrain – not to mention a buzzing culinary scene and more wallet-friendly prices – make it well worth an off-season visit.” Blane Bachelor New York Magazine VISITOR SERVICES Tourism Whistler’s Visitor Services department is responsible for operating the Whistler Visitor Centre, providing visitor information and support to conference groups, working with resort partners to resolve guest service issues should they arise and to help improve overall guest service. In 2014, the Whistler Visitor Centre continued to play an important role in welcoming guests to Whistler, and providing information on the many attractions Whistler has to offer. The Whistler Visitor Centre is one of the busiest Visitor Centres in the B.C. Visitor Centre network and continues to achieve high visitor experience scores. HIGHLIGHTS: • Served 140,930 visitors (84,562 parties) at the Whistler Visitor Centre • Achieved $1,497,445 in combined sales for the Visitor Centre and offsite event ticket sales, representing a 3% decrease over the previous year • Coordinated two resort-wide product knowledge sessions for resort front line staff and business owners, hosting a total of 650 attendees at each event • Supported conference groups with the “Flash Your Badge” delegate specials and provided information desks where required • Supported events by providing ticket sales, will-call and information for events such as: World Ski and Snowboard Festival (WSSF), International Bobsleigh and Skeleton Federation (FIBT) and luge events, New Year’s Eve and Subaru IRONMAN Canada • Participated on the service committee with the Whistler Chamber of Commerce • Scored 97% overall in the Whistler Chamber of Commerce ServeUs Challenge • 80% of the team completed four online World Host courses • Achieved strong results on Trip Advisor reviews with an average score of 4.5/5 18 Annual Report 2014 WHISTLER.COM CENTRAL RESERVATIONS Whistler.com Central Reservations (WCR) provides the call centre and online booking engine for Tourism Whistler. Whistler.com aims to enhance the guest experience by providing a superior one-stop-shop for Whistler, where visitors can complete the entire consumer path-to-purchase journey, from discovering Whistler to planning their vacation and finally to booking their trip. WCR has ultimate responsibility for converting leads generated by marketing initiatives into room nights for the resort. Profits are reinvested back into marketing Whistler. WCR generated positive results in 2013-14, with sales increasing 13% year-over-year to $14.7 million. The continued positive momentum in sales can be attributed to some key factors, including improved economic conditions, increased tactical and digital marketing, enhanced online booking features and increased Travel Consultant training. HIGHLIGHTS: • An increase of 141% year over year in marketing reinvestment, supporting Tourism Whistler’s resort-wide marketing and sales initiatives • Launch of the new website and continued improvement to the customized booking funnel, resulting in an increase in online sales • Fulfillment of the successful resort-wide packaging strategy, showing a significant improvement in the booking window. The book early campaigns (with ‘book by’ deadlines of August 31 and November 15) resulted in an increase of 10% and 19% respectively in room nights year over year • Whistler.com continued to work hand in hand with Tourism Whistler and the Resort Municipality of Whistler Festivals, Events & Animation Committee to provide a one stop shop with unbiased information • 19 Scored 99% overall in the Whistler Chamber of Commerce ServeUs Challenge Annual Report 2014 TOURISM WHISTLER FINANCIAL STATEMENTS 2014 PERFORMANCE INDICATORS AND FINANCIAL RESULTS Overall, Tourism Whistler’s 2014 financial results were strong, with the net surplus from operations of $758K, as a result of salary savings, additional partner revenues, additional Municipal and Regional District Tax contribution, outside service contract negotiations and other miscellaneous savings (before amortization of capital or deferred contributions), coming ahead of budget by $200K. Surplus in excess budget will be incorporated into the 2015 budget to enhance marketing initiatives. In 2014, the organization continued to strive for streamlined administration and responsible capital expenditure, while ensuring a maximum investment in targeted, effective marketing and sales initiatives. PERFORMANCE INDICATORS TOURISM WHISTLER HIGHLIGHTS 2014 2013 2012 Sales and Marketing Expenditures $ 8,797,235 $ 8,287,194 $ 8,197,245 Administrative Expenses $ 1,844,245 $ 1,738,811 $ 1,677,845 WHISTLER RESORT HIGHLIGHTS 2014 2013 2012 1,187,945 1,143,538 1,100,779 Hotel Occupancy 58% 55% 53% Average length of stay (in days) 2.67 2.66 2.64 Room Nights 20 Financial Statements 2014 TOURISM WHISTLER FINANCIAL STATEMENTS 2014 INDEPENDENT AUDITOR’S REPORT To the members of Tourism Whistler Grant Thornton LLP Chartered Accountants Management Consultants (Whistler Resort Association) We have audited the accompanying financial statements of Tourism Whistler (Whistler Resort Association) (the “Association”), which comprise the statement of financial position as at December 31, 2014 and the statements of operations and changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Association’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Tourism Whistler (Whistler Resort Association) as at December 31, 2014 and the results of its operations and cash flows for the year then ended, in accordance with Canadian accounting standards for not-for-profit organizations. Vancouver, Canada March 5, 2015 21 Chartered Accountants Financial Statements 2014 TOURISM STATEMENTS OF FINANCIAL POSITION WHISTLER FINANCIAL December 31, 2014 STATEMENTS Assets 2014 Current $ Cash 1,569,957 December 31, 2013 $ 1,556,849 1,464,104 1,469,589 Prepaids and other 245,779 298,949 Inventory 195,358 156,018 3,475,198 3,481,405 Receivables (Note 3 and 10) 169,375 169,375 Investment in partially owned companies (Note 5) 1,241,323 1,240,314 Capital assets (Note 6) 9,015,242 9,431,770 Advances to partially-owned companies (Note 4) $ 13,901,138 $ 14,322,864 $ 1,376,329 $ 1,256,695 Liabilities Current Payables and accruals Unearned revenue and deposits Current portion of term debt (Note 7) 607,912 772,336 559,384 1,947,987 2,543,625 3,977,018 Term debt (Note 7) 1,443,699 543,420 Deferred contributions related to capital assets (Note 8) 3,976,691 3,859,531 7,964,015 8,379,969 Net Assets 5,937,123 Unrestricted net assets $ 13,901,138 5,942,895 $ 14,322,864 Commitments (Note 11) On behalf of the Board Director Director See accompanying notes to the financial statements. 22 Financial Statements 2014 TOURISM STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS WHISTLER FINANCIAL STATEMENTS 2014 2 0 14 Year Ended December 31 2013 Revenue Membership assessments $ 8, 2 9 6,1 0 2 $ 8,2 2 1 ,6 0 9 Marketing and sales 3 , 3 07,786 3 ,1 91 ,6 59 Conference Centre 1 , 80 1 ,70 0 1 ,71 5 ,2 37 Golf course 3 , 0 55, 392 2 ,837,83 3 1 2 8, 662 285,764 1 6, 589 , 64 2 1 6 ,2 52 ,1 0 2 Other income Expense 1 , 84 4 , 24 3 1 ,73 8,80 5 Marketing and sales 1 0 ,175, 3 4 9 9,53 4 ,4 4 6 Conference Centre 1 , 0 80 ,4 0 3 989 ,6 5 0 Golf course 2 ,732 , 0 41 2 ,6 0 9 ,0 5 5 1 5, 832 , 0 36 14 ,871 ,9 56 757, 60 6 1 ,3 80 ,14 6 ( 1 , 375, 84 4 ) ( 1 ,3 53 ,6 56 ) 4 83 , 673 4 39 ,3 14 1 3 , 9 50 1 0 5 ,6 1 8 1 14 , 84 3 - Administration Excess before items below Amortization of capital assets Amortization of deferred contributions (Note 8) Gain on disposal of capital assests Gain on settlement (Note 9) (Deficiency) excess of revenue over expense Net assets, beginning of year $ $ $ 571 ,4 2 2 5, 94 2 , 89 5 $ 5 ,371 ,473 ( 5,7 72 ) (Deficiency) excess of revenue over expense Net assets, end of year ( 5,7 72 ) $ 5, 937,1 2 3 571 ,4 2 2 $ 5,94 2 ,89 5 See accompanying notes to the financial statements. 23 Financial Statements 2014 TOURISM STATEMENT OF CASH FLOWS WHISTLER FINANCIAL 2014 Year Ended December 31 STATEMENTS Cash provided by (used in) 2014 Operating activities (Deficiency) excess of revenue over expense $ (5,772) 2013 $ 571,422 Amortization of capital assets 1,375,844 1,353,656 Amortization of deferred contributions (483,673) (439,314) (13,950) (105,618) (1,009) (83,853) 871,440 1,296,293 5,485 (129,023) 53,170 (91,994) (39,340) (35,698) Gain on disposal of capital assets Share of net earnings of partially-owned companies Change in non-cash working capital Receivables Prepaids and other Inventory 119,634 1,013 (164,424) 83,505 845,965 1,124,096 (561,374) (540,409) 600,833 253,883 39,459 (286,526) - 158,400 Purchase of capital assets (872,316) (551,598) Net cash used in investing activities (872,316) (393,198) 13,108 444,372 Payables and accruals Unearned revenue and deposits Net cash generated through operating activities Financing activities Repayment of term debt Deferred contributions related to capital assets Net cash provided by (used in) financing activities Investing activities Proceeds on disposition of capital assets Net increase in cash 1,556,849 Cash, beginning of year Cash, end of year 1,112,477 $ 1,569,957 $ 1,556,849 $ 73,050 $ 222,840 Non-cash financing and investing activities not included in cash flows Purchase of capital assets by assumption of capital lease obligations See accompanying notes to the financial statements. 24 Financial Statements 2014 TOURISM NOTES TO THE FINANCIAL STATEMENTS WHISTLER FINANCIAL December 31, 2013 STATEMENTS 1. Nature of operations 2014 Whistler Resort Association (the “Association”), doing business as Tourism Whistler, is a not-for-profit association incorporated pursuant to the Resort Municipality of Whistler Act. The purpose of the Association is to promote, facilitate and encourage the development and ongoing operations of the Whistler resort. The Association is a nonprofit organization for purposes of the Income Tax Act. 2. Summary of significant accounting policies Basis of presentation These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. Use of estimates In conformity with Canadian accounting standards for not-for-profit organizations, management is required to make estimates and assumptions that could affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the year. Actual results could differ from those reported. Revenue recognition Tourism Whistler follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Restricted contributions related to capital assets are deferred and amortized over the economic life of the asset. Unrestricted revenues are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Membership assessments are recognized as revenue on the due date of the related invoice. Marketing and sales revenues in connection with events are recognized when events are held. Sponsorship revenues are recognized over the term of sponsorship agreements. Conference Centre rent and commission are recognized as revenue when functions are held. Golf course fees are recognized as revenue when the related services are provided. Retail sales revenue is recorded when the goods are sold. Unearned revenue and deposits Unearned revenue and deposits represent membership assessments received in advance, payments received in advance for events to be held in the future, or the unamortized portion of the sponsorship revenues received. These amounts will be recorded in earnings as earned. Cash and cash equivalents Cash and cash equivalents includes cash on hand, bank accounts and those items which are readily convertible into cash that mature in three months or less. Inventory Inventory is valued at the lower of average cost and net realizable value. Investments in partially-owned companies The Association uses the equity method of accounting for its investments in partially-owned companies over which it exercises significant influence. Capital assets Capital assets are recorded at cost. Capital assets are amortized over their estimated useful lives as follows: 25 Golf course 5 to 30 years, straight-line Conference Centre renovations 3 to 20 years, straight-line Conference Centre furniture, fixtures and equipment 5 to 10 years, straight-line Administration 3 years, straight-line Financial Statements 2014 TOURISM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) WHISTLER FINANCIAL 2. Summary of significant accounting policies (continued) STATEMENTS Impairment of long-lived assets 2014 The Association tests long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of the asset exceeds the sum of the undiscounted cash flows resulting from its use and eventual disposition. The impairment loss is measured by the amount by which the carrying amount of the long-lived asset exceeds its fair value. Financial instruments The Association initially measures its financial assets and financial liabilities at fair value. The Association subsequently measures all of its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash and cash equivalents, receivables, and advances to partially-owned companies. Financial liabilities measured at amortized cost include payables and accruals and term debt. 3. Receivables December 31 December 31 2014 $ Assessments 573,560 Conference Centre Resort Municipality of Whistler (“RMOW”) 2013 $ 807,851 14,825 67,068 436,654 225,677 54,276 19,607 384,789 349,386 $ 1,464,104 $ 1,469,589 Whistler.com Other 4. Advances to partially-owned companies The advances to partially-owned companies are unsecured, non-interest bearing, and have no set terms of repayment. 5. Investment in partially-owned companies 2014 $ 49% ownership of Tourdex.com, at cost 454,255 2013 $ 454,255 370,725 370,725 (101,597) (99,928) 517,940 515,262 $ 1,241,323 $ 1,240,314 Cost Accumulated amortization 2014 Net book value 2013 Net book value $ 7,905,528 $ 5,547,028 $ 2,358,500 $ 2,572,055 11,896,413 6,983,845 4,912,568 5,488,209 3,311,663 1,786,453 1,525,210 1,187,686 881,143 662,179 218,964 183,820 $2 3,994,747 $ 14,979,505 $ 9,015,242 $ 9,431,770 49% ownership of Whistler.com, at cost Cumulative share of net losses of Tourdex.com since acquisition Cumulative share of net earnings of Whistler.com since acquisition 6. Capital assets Golf course Conference Centre renovations Conference Centre furniture, fixtures and equipment Administration Assets under capital leases with a cost of $1,990,943 (2013 - $1,949,841) and accumulated amortization of $1,314,752 (2013 - $1,100,144) are included in capital assets. 26 Financial Statements 2014 TOURISM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) WHISTLER FINANCIAL 7. Term Debt STATEMENTS Royal Bank of Canada loan bears interest at 3.55% per annum, 2014 repayable with monthly payments of principal and interest December 31, 2014 of $32,577. Loan repayable in full on September 1, 2018 $ December 31, 2013 1,397,084 $ 1,750,489 605,999 740,918 2,003,083 2,491,407 Obligations under capital leases consists of several equipment leases with interest rates ranging from 2.86% to 5.35% and maturing between May 2015 and April 2018 559,384 Less: current portion $ 1,947,987 1,443,699 $ 543,420 Loans with Royal Bank of Canada are secured by a first charge over all assets of the Association, a mortgage of lease, and a floating charge on land. The land is leased from the RMOW (Note 11). Interest expense on term debt in 2014 was $85,118 (2013 - $105,124). Annual principal repayments for the next four years are as follows: $ 2015 559,384 2016 551,093 2017 555,905 2018 336,701 $ 2,003,083 8. Deferred contributions related to capital assets Beginning balance Additions Amount amortized to revenue Ending balance December 31 December 31 2014 2013 $ 3,859,531 $ 4,044,962 600,833 253,883 (483,673) (439,314) $ 3,976,691 $ 3,859,531 9. Contingent gain During the year, the Association settled a long-standing claim against a vendor for faulty repairs. The Association does not anticipate further dealings relating to this matter. 10. Related party transactions Included in receivables are amounts owing from Whistler.com, a partially-owned company, of $54,276 (2013 - $19,607). During the year, the Association invoiced Whistler.com $485,498 (2013 - $433,700) for an allocation of shared labour costs and other expenses incurred by the Association. The Association also reimbursed Whistler.com $31,594 (2013 $33,516) for management services in connection with the peak ratings program. Included in revenues during the year are greens fee sales for the Whistler Golf Course, less commissions, made by Whistler.com in the amount of $34,646 (2013 - $24,980). These transactions were made in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. 27 Financial Statements 2014 TOURISM NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) WHISTLER FINANCIAL 11. Commitments STATEMENTS Golf course and Conference Centre 2014 In November of 1989, the Association entered into a long-term lease agreement for ten renewable terms for ten years each with the RMOW in which the Association received operating rights to both the Whistler Golf Course and the Conference Centre in return for nominal annual rent and assuming all risks and obligations associated with ownership of the facilities. As part of this agreement, the RMOW agreed to provide the Association with one-half of the hotel tax it collects, to a maximum of $350,000 per annum adjusted annually for inflation since 1989 (2014 - $631,104; 2013 $629,528). These amounts are included in revenues in the statement of operations. 12. Financial instruments The carrying amount of financial assets measured at amortized cost is $3,203,436 as at December 31, 2014 (2013 $3,195,813). The carrying amount of financial liabilities measured at amortized cost is $3,379,412 as at December 31, 2014 (2013 $3,748,102). Credit risk The Association is exposed to credit risk on accounts receivable from its members and customers and its advances to partially-owned companies. The Association performs credit risk evaluations on its members and customers and considers its risk to be acceptable and appropriately managed. At December 31, 2014, the maximum exposure to credit risk is equal to the carrying amount of financial assets of $1,633,479 (2013 - $1,638,964). Liquidity risk Liquidity risk is the risk that the Association cannot meet a demand for cash or fund its obligations as they come due. The Association’s management monitors cash flows on a regular basis to ensure the Association has enough readily available funds to cover its financial obligations as they come due. Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. For purposes of disclosure, the Association segregates market risk into two categories: interest rate risk and currency risk. Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Association incurs currency risk on financial instruments denominated in currencies other than their functional currency, which includes cash and cash equivalents. At December 31, 2014, the Association has USD $255,450 (2013 - USD $169,617) included in cash. Interest rate risk Interest rate risk is the risk that changes in interest rates will affect future cash flows or fair values of financial instruments. The Association’s debt bears fixed interest rates. The Association is not exposed to interest rate risk on this debt. Interest revenue The Association earned $97,077 (2013 - $150,455) in interest revenue on its financial assets. The amount is included in revenue in the statements of operations. 13. Comparative amounts Certain prior period amounts have been reclassified to conform with the financial statement presentation in the current period. 28 Financial Statements 2014 Photography by Mike Crane, Tourism Whistler whistler.com/members 1.604.932.3928 or 1.888.869.2777 (within Canada & U.S.) Annual Report 2014
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