Company registration number.. 03425954 Charitable company registration number.. 1065924 The Travel Foundation IA company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2020 Milsted Langdon LLP Chartered Accountants and Slatulory Auditors Freshford House Redcliffe Way Bristol BS1 6NL The Travel Foundation Contents Reference and Adminislralive Details Report of the Chair Trustees, Report 31011 Statement of Trustees. Responsibilits'es 12 Independent Auditors, Report 13to15 Statement of Financial Activities 16 Balan¢e Sheet 17 ststemenl of Cash Flows 18 Notes to the Financial Statements 19to39 The Travel Foundation Reference and Administrative Detsils Chief Executive Officer Mr J Sampson Ms S Felton Iresigned 4 September 20191 Mr N Josephides Mr R B Anderson Mr A M Rowland Mrs D A Hindle Mr J de Vial Trustegs Mrs J Ashton Ms H N Marano Ms E Dens {appointed 25 January 20211 Ms J Kuehnel lappointed 25 January 20211 Dr M S Kelig lappoinled 25 January 20211 Ms R Turner lappoinled 25 January 20211 Ms C A Ritter lappointed 25 January 2021) Secretary Mrs T J Quinn-Forgan Principal Office Create Centre Smealon Road Bristol BS16XN The charitable company is incorporated in England & Wales. Company Registratlon Number 03425954 Charitable company Registration Number 1065924 Auditor Milsled Langdon LLP Chartered Accounlanls and Slatulory Auditors Freshford House Redcliffe Way Bristol BS16NL Page 1 The Travel Foundation Report of the Chair For the Travel Foundation, as for most other tourism organisalions, this year has been deeply marked by the COVID-19 pandemic. 11 has been a year of change, of fast adaplalion and al times of great sadness. However, it has 81so been a year of resilience and of increased collaboration, which has led to an unparalleled opportunity lo reshape the future of tourism. Thanks to the dedication of the executive team and the support of the Iruslees, the organisalion survived a significant loss of funding this year caused by the travel restrictions imposed due lo the pandemic. This includes a 97¥. Ioss of expected private sector donab'ons and a 55-600 /0 overall reduction in income ag81nsl the original 2020 budget. Al the oulsel of the pandemic, we took great strides lo reduce every management, support, and fundraising cost possible, but sadly had lo make five redundancies, a third of our staff. In addition, 8 significant number of staff were fuAoughed for part of the year. under the UK'S job retention scheme, and many charitable activities were suspended. Our special thanks go lo TUI Care Foundation, which supported us through this difficult financial period by continuing to provide funding for projects, despite the suspension of activities, which will now take place in 2021 and 2022. Despite the many challenges we have faced, the organisalion has come through the year stronger and more determined, and the organisation's mission and vision is now more relevant than ever. The team members have enriched their synergies and expanded their individual capacities while adapting to new ways of Working 109elher in a more cross-functional manner. ImF>Ortantly, we realigned our strategy with the new challenges fa￿d by destinations and businesses. and are well positioned to be an integral partner for recovery. This is evidenced by the many new partnerships that were calalysed over the past year and the 10 additional income sources that have been secured for inilialives starting either al the end of 2020 or early in 2021. The Travel Foundation also helped lo spearhead the newly formed Future of Tourism Coalition, a firsl-of41s kind collaboration among NGOS with hundreds of signatories, which has been built around a framework of 13 Guiding Principles that puls communities and the environment al the heart of tourism sector recovery. As we go forward. we are focused on helping the industry lo both define what 'Build Back Better, really means and put in plaTr the necessary structures lo achieve this. We will be a catalyst for change, using our collaborative 8pproach, visibility, and global leadership lo help usher in a new era for the travel industry. Finally, I cannot close without expressing thanks and gratitude from the enkn.re team to our outgoing Chair, Noel Josephides, who has dediealed many years of his career lo the support of the Foundation, having been involved in it5 inception in 2003 and guiding the organisalion's development as Chair of the Trustees for 10 years. Noel has played an invaluable role in guiding the organisalion through this challenging year and thankfully will continue to contribute as a trustee. Hel Ch n Mara r of the Board of Trustees Page 2 The Travel Foundation Trustees. Report The Trustees, who are directors for the purposes of company law, present the annual report together th the financial statements and auditors, report of the charitable company for the year ended 31 De￿mtser 2020 which are also prepared to meet the requirements for a Trustees, report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities". Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffeclive January 20191. STRUCTURE. GOVERNANCE AND MANAGEMENT Organisational structure The charity is govemed by a Board of Trustee5 who carry overall ￿SponsIbl11ty for furthering the aims and objective5 of the Charity. The Trustee5 who held office during the financial year 8nd lo date of this report are as sel out in the reference and adminislralive details on page one. The Board of Trustee5 meets at least four b'me5 a year lo review operational performance and strategic issues, as presented by the Chief Executive and members of the senior management team. The respective roles and responsibilitie5 of Trustees and management have been clearly defined. All strategic and govemance decision5 are made al Board level, with input where appropriate from the Chief Executive and members of the senior management team. The day lo day running of the charity has been delegated by the Trustees lo the management team. Recrultment and appointment of Trustee$ The board's policy is lo aim lo have. and regularly review, the mix of skills, knowledge and experience il needs to govern, lead and deliver the charity's purposes effectively. It reflec15 this mix in its Iruslee appointments, balancing the need for continuity with the need lo refresh and diversify the board. The Travel Foundats'on has recruited by means of both exlemal competitive advertisement, and by approaching Individuals who have been identified as having appropriate specific skills and experience", in either case followed by an interview process and formal appointment by trustees. Trustees receive an appropriately resourced induction when they join the board. This includes meetings with senior management and covers all areas of the charity's work, and includes the Charity Commission written guidance for Iruslees. Trustees are given the opportunity lo have ongoing leaming and development. Governance costs Governance costs comprise all expenditure associated with the accountability of the charity and ils compliance with regulation and good practice. This includes costs related lo audit fees and the board of Trustees. In 2020, Governance costs were 1.650kn12019 - 1.10Q/ol of income. Page 3 The Travel Foundation Trustees, Report Trustees. remuneration The Trustees (who are directors for purpose of company lawl r￿1Ved no remunerab'on in the current or prior period. Expenses in the year lolalled £7612019 £1,253). Included within thi5 balance is £76 of expenses incurred lo facilitate Trustee meetings. Governing document The Travel Foundation is a Charity registered with the Charities Commission, governed by the Charities Act 2011 and the Comp8nies Act 2006, and is incorporated a5 a company limited by guarantee. The conslitulional documents are the Arb'cles of Associats"on. The Memorandum and Articles of Association were last reviewed and updated in 2016. Risk Management The Foundation maintains a risk ￿gIster covering all significant sour￿$ of risk lo the achievement of rts objectives, and recording any agreed mitigating action. The Foundation's risk register and policy was reviewed and approved by the board of trustees in September 2019. Intellectual property The Travel Foundation name, logo la5 updated in 20161 and slrapline are registered as a trade mark in the UK and EU. FINANCIAL REVIEW Overview and year-end posltlon Total income of £466,496 in 2020 12019 - £732,745) was down 36.30kn year on year. This decrease was the result of lower restricted income funding, due to the conclusion of Nvo initiatives that had been in place in 2019 and a significant loss in donations due lo the global pandemic and ils devastating impact on travel. However lo offset the k)ss of donations, 10 additional income sources were secured in the year for init181ives starting al the end of 2020 or in early 2021. Also included in the total income is £98,403 received from the job retention scheme. Representing a year on year decrease of 28.7%, total expenditure was £671,895 12019 £941,954) This reduction was lo counter the lower income level, largely achieved through the suspension of in-county activities because of the global pandemic, the furloughing of a number of staff for much of the year, some unavoidable Cuts lo staffing and 8 freeze on unreslricled spending wherever possible. Included In the total expenditure therefore is £98,403 for wage5 that were paid using the job retention scheme. A5 reported in our 2019 accounts, we budgeted to draw down from our unreslricled reserve5 in the year, and a greater than forecasted draw on these was then necessary within the year because of the pandemics significant impact on anlicipaled unrestn'cled income. We closed the year with a draw down on these of £205,399 loss 12019 209,209 lossl, leaving the organisation with closing unreslricled capital and reseNes of £236,637 12019 - £570,547) and restricted capital and reserves of £180.88812019 - £52,377). Page 4 The Travel Foundation Trustees, Report Reserves policy and goin9 con¢orn Our Reserves policy was updated in the year lo reflect the pressures that both the travel and chanty seelors were under 85 a result of the pandemic. Our reserves policy therefore requires that reserves be maintained al a level which ensures that The Travel Foundab'on could meet all it5 obligations in the event that the charity ceased operations. At 31 December 2020 the charity had lolal reserves of £417,525 {2019 - £622,924) of which £236,637 12019 £570,547) were unrestricted funds and £180,888 12019 £52,377) were reslricled funds. The free reserves of the charity were £226,39612019 - £558,￿91. In April 2021, when the policy was lully updated, a readily realisable reserves figure of £125k was calculated for the 2021 period, as the amount required to meet obligations should the charity cease operations. Projeeled closing reserves in December 2021 al that time were budgeted al £138k and al the time of the signing these accounts, this had grown lo a projected £180k. Looking to the future, the 8oard of Trustees will conduct a review of financial progress at each meeting in 2021 as a result of the crisi5 and will execute appropriate actions to reduce expenditure or change the reserve requirement as necessary lo ensure the long-lerm viability of the charity. PLANS FOR FUTURE PERIODS Looking fonvard In adopting a highly conseNative 8pproach in light of the global pandemic, all forecast income that would ordinarily be raised through holiday bookings has been reduced or removed from projected 2021 income budget whilst a number of committedl secured grants have been deferred from 2020 into the 2021 budget. Significant steps have been taken by The Travel Foundation to reduce costs in order lo meet this anlicipaled lower income, resulting in budgeted closing 2021 reserves of £278k. The draw down ot reserves for 2021 will be used once again to maintain and continue core aclivilies, including significant fundraising activities lo offset projected funding shortfalls. The Travel Foundation believe this view of the budget is the worst-case S￿narIO bul wished lo adopt a cautious approach lo both income and expenditure planning, lo sustain the organisabon through the ongoing crisis. Page 5 The Travel Foundation Trustees, Report KEY ACHIEVEMENTS AND PERFORMANCE During 2020, the Travel Foundation's year was characlerised by rapid adaptation lo the glob81 pandemic and the travel reslriclions put in place by governments around the world in response. Early in 2020, we developed and began to implement a new strategy lo ensure that tourism protec15 destination assets (heritage, culture, environmenll and bnngs greater benefits for communities, working under three objectives as follows.. Destination management.. Helping tourism actors lo plan, develop and govern with destination needs al the heart. Sustainable products.. Supporting the development of Innovative tourism products that create value for local communities. Thought leadership.. Advocating for change and developing a global ne￿Ork of partners in order to promote new understanding and innovation. When the pandemic hil, we conh'nued lo work tOW8rds these goals bul focus5ed our effort5 on activities that support destination recovery and encourage collabor8tion across the tourism Sector. We also priorilised secunng our funding sources so that we are able lo continue our important work into the future. Whilst many of our projects had lo be paused for a lime as a result of the pandemic, on restarting we have adapted many of our activities to reflect the new challenges faced by our project stakeholders. Below is a summary of progress and achievements under these areas of focus. More information about our funding can be found in the financial summary. Page 6 The Travel Foundation Trustees, Report Supporting destination recovery The impact of COVID-19 on destinations - particularly those dependent on international travel - has highlighted the need lo strengthen the tourism sector against ongoing and future shtscks. 11 is an opportunity lo reset and create a more balanced model, one that continues lo deliver economic benefits bul also addresses negalive environmentsl 8nd socio-cultural impacts. In response, we developed a range of capacity building initiatives to support a smarter, more communily-focused recovery. In 2020.. We delivered a tourism recovery programme called Roots to Recovery, in partnership with City Nation Place, for the Colorado Tourism Offi￿, the Edinburgh Tourism Action Group, Grenada Tourism Authority and Indigenou5 Tourism Ontsrio The programme supported these destinations 8$ they developed their recovery plans. with 8 focus on increasing opportunities for community livelihoods, strong and resilient local supply chains, protection of natural resources and overall destination management capacities. From this work, we have developed a recovery plan assessment fram&work, which will be rolled out in Mexico, the Caribbean and other destinations in 2021. Vve began a recovery and adaptation programme for micro-deslination5 through SMILO (small Islands organisalionl, supporting destinations to lake a more holistic approach lo product development by considering the impacts of tourism. We used an innovative methodology piloted in Tenerife in 2019 10 create an impact measurement framework, which enable5 destinations to Identify and compare the benefits and costs of different market segments lo establish the optimum market mix and align marketing and investment strategies accordingly. We delivered a new handbook and toolkit, 'Suslainable Tourism Implementation,, in partnership with the European Tourism Commission IETCI which represents 32 national tourism organisations across Europe and working alongside Good Place Slovenia and Green Case Consulting. The handbook pr@senls a framework of seven steps lo advancing sustainable tourism development and includes lips, best practice examples, checklists and more, supporting destinations to build back better. We entered into a partnership with SPTO {Ihe Pacific Tourism Organisalionl lo produce an 'Are you Ready for Recovery?, toolkit to be disseminated to small businesses across 20 destinations in 2021. We began work on a new project, through the European Bank for Reconstruction and Development IEBRDI, lo enable hotel chains in Croatia and Montenegro to support local communities through local procurement. offering work-based learning for young people and by building a more diver*, equitable and inclusive workforce. The pandemic more than halved guest nights in Croatia in 2020. In response, this project will enable hotels to build back more sustsinably lo emerge from the crisis more competitive and more resilient. "we￿ thrilled to be working with an int8rn8tionally-recognised organisation like The Travel Foundation to support our recovery planning and anticipate that their wod( with us will signilicantly strengthen the overall impaGI of Our￿COVeryplan." Andrew Gmssmann Director of Destin8tion Development, ColoTrdo Tourism Office Page 7 The Travel Foundation Trustees, Report Encouraging Collaboration Future of Tourism Coalib'on Decades of unfettered growth in travel have pul the world's treasU￿d places al risk - environmentally, culturally, socially, and financially. Now, in the wake of the COVID-19 pandemic, the industry faces a precarious and uncertain future and many travel industry leaders are talking about 'building back bettel. We aim lo ensure that such phrases are backed by substance and action, avoiding past mistakes and creating real change. In June 2020, we joined forces with five other leading international tourism NGOS lo agree on a vision for the fulure and work together to achieve it, launching the ground-breaking Future of Tourism Coalition. How it works The six founding organisalions, including the Travel Foundab"on, created and aligned behind a set of 13 guiding principles which provide a vision for how tourism could 8nd should be managed. By the end of 2020, over 400 tourism organisalions have signed up lo these principles. The coalition seeks to amplify the message of sustainable recovery at a critical time. Together, we launched a new website and promoted the Future of Tourism Coalition around the worfd. During the 18St half of 2020, 140 articles about the Coalition and our goals appeared in the travel trade and consumer press, with a potential reach of over 290 million viewers. We are now creating a series of resources 10 5UPPQrt tourism organisalions to align their recovery plans with the co81ition's guiding principles, including a webinar series which will run throughout 2021, covering topics such a5 destination stewardship, measuring impacts and local supply chains. The Future of Tourism coalib'on is just getting started and in 2021, we aim to grow the community and work with our partners to rebalance the tourism model so that people, places, the planet and our industry benefit. "We now find th81 sharing our eXpe￿￿n￿S and gaining b8St pr8clice examples fmm other countries will be the key to successfully navigate the post-corona tourism universe. This is where th& mle of the Future of Tourism Coalition will be vital The ST8 is looking fonvard to cooperating with the Coalition and to pmgress further with the reset of tourism, especially in this new reality. where sustainability and destination needs, 8s well as trust, will have to be placed at the ￿nIer of tourism s future. Maja Pak Dir&ctor at the Slovenian Tourist Board (STB). Page 8 The Travel Foundation Trustees, Report Re-aligning existing projects to meet new challengos We began 2020 with active projects in Jamaica, Turkey, Cyprus, Saint Lucia and Mauritius, where we were working Wlth a range of tourism stakeholder5 from small business owners serving the tourism market, lo small-sc8le producers creating products for sale to hotels and accommodation providers themselves. These projects were pul on hold for much of 2020, as the industry and communities grappled with the health crisis created by COVID-19. All of these projects are now back up and running and providing new and vital support to the stakeholders they serve. BiLUp. Small Business Jamaica This prtsjecl, funded by TUI Care Foundation, is creating new opportunities for up to 150 small-business entrepreneurs in Jamaica, so that more people can ljenefil from tourism. With the right conditions, tourism h8s g￿al potential lo enable small businesses such as reslauranls. accommodation providers, allraclions and excursion providers lo prosper, but these businesses have been amongst the hardest hit by the pandemic. Having delivered markel-readiness workshops lo 190 small business owners the previous year, we switched our support in 2020 to focus on on-line training and resources that support business recovery. We created a guide lo the financial scheme5 available lo small, tourism businesses and a gui(Je lo marketing, which were both launched early in 2021. We also renewed our partnership with TPDCO (Jamaica's Tourism Product Development Company) and aim to deliver online recovery webinars with them in the coming year. Kee Our Sand and Se8 Plastic Free Cy. rus. This initiative, funded by TUI Care Foundation, brings together lourisls, tourism businesses and residents across the Fam8gusla region of Cyprus to cut consumption of single-use plastic. The pandemic has increased the importance of this project as hygiene measures mean that more plastic is being used and could potentially finds ils way lo the marine environment. We have been committed lo ensuring that one crisis does not aC￿lerate another and have been working with local stakeholders lo engage them in plastic reduction measures. Nearly 50 hotels and over 35 bars are now signed up to the project and have committed lo make changes to reduce plastic use. Awareness raising campaigns have reached over twenty thousand residents and around 200 school children have participated in project activitie5. We have also increased the resources available on the project website. which now include guidan¢e and facts for hotels, a hotel training toolkit and an animation for use schools and hotels. -Flavours From The Field5 Turke This project, also funded by TUI Care Found81ion, aims to improve the livelihoods of farmers and small-scale producers in the Mu)la region by facilitating the local supply of traditional ingredients and delicacies lo hotels. 2020 saw a 79Q/o decrease in international lounsm lo the region and as a result our project activities were pul on hold. However, by the end of the year all hotels h8d re-engaged with the project and we have widened our nel to include smaller hotels, bars and restsuranls. We have also engaged more suppliers and, lo dale, 9 produelion units representing 95 farmers have sold products to tourism businesses. The training programme for suppliers, which will be rolled out In 2021, has also been adapted including a stronger focus on hygiene and sanitation. International Climate Initl81ive - Transformin -￿ value Chains Saint Lucia and Mauritius This ambitious project, led by UN Environment, is finding ways lo reduce carbon emissions, as well as water-use and waste from tourism across four island stales. The Travel Foundation is leading the implementation of the initiative in Mauritlus and Saint Lucia, where this year, despite a pause in activities as a result of COVID-19, we worked with stakeholders to develop implementation plans and developed training packages for delivery in 2021 which will support businesses to improve their procurement and waste management praelices. Page 9 The Travel Foundation Trustees. Report O_nline Irainin initiatives Alongside the training focussed on recovery highlighted above, we delivered a number of online courses in 2020 including.. A training package on sustainable product development for managers of protected areas, in partnership with IUCN Med and the Global Footprint Network. 85 part of the MEET Network for Mediterranean Protected Areas. Four online courses for lour guides focussing on sustainable guiding of heritage, marine, safari and nalure-based tours. 132 guides look the course in 2020. The courses were developed following the success of the origin81 'Leaciing the Way, training developed for ANVR (the Dutch Travel Association). Thought leadershlp and advocacy Throughout the year, we have continued our work lo advocate for ch8nge and lo promote a new, enhanced understanding of destination management and sustainable products. In 2020.. We presented at over 40 events, spreading the word about sustainable recovery to tourism industry professionals and destination management organisalions all around the wodd. These include Phocu5wrighl Europe, Colorado Tourism Conference, IT8 Asia, City Nation Place Global, ECM annual meeting of CEOS, the European Commission's European Tourism Convention, and the launch of the UN Global Tourism Plasb'cs Initiative al FITUR, amongst others. We communicated OLrr work and our case for change in 483 media articles around the worfd with a potential reach of over 840 million viewers. We have over 9000 followers on Twitter and have grown our presence on Linkedln, also reaching nearly 9000 followers. We jointly hosted a round-lable event with the Pacific Asia Travel Association IPATAI and Harvard's International Suslain8ble Tourism Iniliolive called 'Building Back Better.. ReconstrLJCting Governmentsl Systems and Policie5 for Sustainability., The event brought policy experts from around the wodd together to discuss how tourism can Improve ils governance and the recovery of deslinalion5 hil hard by the spread of COVID 19. Al the event, we presented early findings from our research into future scenarios for destination stewardship and the governan￿ structures that would best promote it, which has been conducted in p8rtnership with the European Tourism Futures Inslilule and the Wortd Travel and Tourism Council IvvfTCI. Looking to the future In the wake of the pandemic, the tourism industry stands at a crossroads, with a unique opportunity lo improve ils impact. A better future for tourism relies on the industry creating new ways of measuring success, taking action lo create real change aTrd ensuring a more inclusive and equitable environment. Working with our partners, we aim lo be a catatyst for change. We will support destinations and travel companies to lake a systemic approach that will enable a better, faI￿r type of tourism that improves long-lerm outcomes for destination communities and environments. This year saw us enter into new partnerships and sign Mous with a range of national and International organisalions around the world which will help us lo expand our reach, this includes.. Women in Travel, the Institute of Tourism Croatia, Thompson Okanagan Tourism Associ8tion ITOTAI, Suslentur, IUCN and GFN and a major intemalional hotel chain. Page 10 The Travel Foundation Trustees, Report Alongside these and other partners, we wll work lo truly 'build back betterf, creating a new model for tourism lor a more sustsinable, equitable and inclusive future. Disclosure of information to auditor Each Trustee has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that infofmab'on. The Trustees confirm that there is nts relevant information that they know of and of which they know the auditor is unaware. Reappointment of auditor In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Milsled Langdon LLP as auditors of the charitable company is lo be proposed al the forthcoming Annual General Meeting. The annu81 report was approved by the Trustee5 of the charitable company on 1410712021 signed on its behalf by.. and Mr N ¥&ephides Trustee Mrs T J Quinn-Forgan Company Secretary Page11 The Travel Foundation Statement of Trustees. Responsibilities The Trustees (who are also the d1￿ctOrS of The T¥avel Foundation for the purposes of company lawl are responsible for preparing the Trustees, report and the financial 51atemenls in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Poct1￿) and applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial slalements unless they are satisfied that they give a true and fair view of the stale of affairs of the chari18ble company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select $vilable accounting policies and apply them consislenlly., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stalemenls., and prepare the financial statement5 on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accuracy at any lime the financial position of the charitable company and enable them lo ensure that the financial statements comply wlh the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financi81 information included on the charitable company's website_ Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislal¢on in other jurisdictions. Approved by the Trustees of the charitable company on 1410712021 and signed on its behalf by.. Mr ￿JOsephide5 Trustee Mrs T J Quinn- organ Company Secretary Page 12 The Travel Foundation Independent Auditor's Report to the Members of The Travel Foundation Opinion We have audited the financial statements of The Travel Foundation Ithe 'Charitable Company'l for the year ended 31 December 2020. which comprise the Statement of Financial Aclivilies. Balance Sheet, Statement of Cash Flows, and Notes lo the Financial Slalements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Aceounling Sl8ndards, comprising Charities SORP FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the stale of the charitable company's affairs as al 31 December 2020 and of ils results for the year then ended., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice". and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applirable law. Our responsibilities under those slaridards are further described in the Auditor's responsibilities for the audit of the financi81 statements section of our report. We are independent of the charitable company in accordance with the ethical requiiemenls that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical S18ndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Matgrial un¢grtalnty related to going concern We draw attention lo the going concern paragraph in Note 2 in the financial statements which indicated that the charitsble company h85 continued lo operate since the financial year end bul is facing Significant uncertainity due to the Covid-19 outbreak and the effect this is specifi'cally having on the travel industry and the wider economy. These conditions and events, along with other matters as set out in Note 2, indicate th81 a material uncertainty exists that may cast sigificanl doubl on the charitable eompany's ability to continue as a going concern. Our opinion is not modified in respect of this matter. Other Infonnatlon The Trustees are responsible for the other information. The other information comprises the information included in the annual report. other than the financial slalemenls and our auditor's report thereon. Our opinion on the financial slalements does not cover the other information and, except lo the extent otherwise explicitly staled in our report, we do not express any form of 8ssuran conclusion thereon. In connection with our audit of the fi'nancial slalements, our responsibility is to read the other informab'on and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent matenal misstalemenls, we are required lo determine whether there is a material misslatemenl in the finarTrcial statements or a material misstatement of the other information. If, based on the work we have performed. we conclude that there is a material misslatemenl of this other information, we are required to report that fact. Page 13 The Travel Foundation Independent Auditor's Report to the Members of The Travel Foundation We have nothing lo ieport in this regard. Opinion on other matters prescribed by the Companie$ Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the Information given in the Trustees, Report lincorporating the Directors, Report) for the financial year for which the financial statements are prepared is consislenl with the financial slalements," and the Trustees, Report (incorporating the Directors. Reportl has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the company and ils environment obtained in the course of the audit. we have not identified material misslalemenls in the Trustees. Report. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion". adequate 8ccounb.ng records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and relums", or certain disclosures of Trustees remuneffttion specified by law are not made,. or we have not received all the information and explanation5 we require lor our audit. Responsibilitigs of Trustees As explained more fully in the Stslement of Trustees, Responsibilities, Isel out on page 121, the Trustees (who are also directors of the ch8rilable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is ￿e￿ssary to enable the preparation of financial statements that are free from material misslalemenl, whether due to fraud or error. In preparing the financial stslements, the Trustees are responsible for assessing the ¢harrtable company's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis of accounting unless the Trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic allernalive but lo do so. Audltor's responslbllities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financi81 statements as a whole are free from material misslatemenl, whether due to fraud or error, and to issue 8n auditoff s report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordan￿ with ISAS IVKI will always delecl a material misslalement when it exists. Misslatemenls can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial stalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, lo delect material misslalements in respect of irregularities, including fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud. the audit engagement team". Page 14 The Travel Foundation Independent Auditor's Report to the Members of The Travel Foundation Obtained an understanding of the nature of the industry and sector. including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regul810ry framework,. Inquired of management, and tho* charyed with governance, about their own idenlificalion and assessment of the risk5 or irregularities. including known and actU81, suspected or 811eged instances of fraud., Discussed mallers about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. However, it is the primary responsibility of management, with the oversight of those charged with govemance, lo ensure that the enlily's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. A further description of our respon$ibilits'es for the audit of the financial statements is located on the Financial Reporting Council's website at véww.frc.org.ukjauditorsresponsibililies. This description forms part of our audilorfs report. Use of our report This report is made solely lo the charitable company's Trustees, as a body, in accordan￿ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale to the charitable company's trustees those matters we are required lo stale lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not aC￿pt or assume responsibility to anyone other than the charitable company and ils trustees as a body, for our audit work, lor this report. or for the opinions we have formed. Mrs S R Jenkins (Senior Stalulory Auditor} For and on behalf of Milsled Langdon LLP, Fre5hford House Redcliffe Way Bnstol BS1 6NL Date.. Page 15 The Travel Foundation Statement of Financial Activities for the Year Ended 31 December 2020 Total 2020 Total 2019 Unrestri¢tgd Restrlcted Note Income and Endowrnents from: Donations and legacies Chari18ble activities Investment income Other income 27.156 27,156 332,001 1,177 106,162 127,025 599,558 3,068 3,094 332,001 1,177 106,162 Total Income 134,495 332,001 466,496 732,745 Expenditure on: Raising funds Charitable activities (100,3321 1368,0731 1100,3321 571,563 {98,1091 843,845 203,490 Total Expenditure Net lexpenditurellincome Nel movement in fvnds 468,405 1203,490 671,895 941,9541 209,2091 333,910 128,511 205.399 1333,9101 128,511 1205,3991 1209,2091 Reconciliatlon of funds Total funds brought forward Total funds carried forward 570,547 52,377 622.924 832,133 622,924 19 236,637 180,888 417,525 All of the chantable company's activities derive from continuing operations during the above hvo periods. The funds breakdown for 2019 is shown in note 19. The note5 on pages 19 10 39 fomi an integral part of these financial slatemenls. Page 16 The Travel Foundation (Registration number.. 03425954) Balance Sheet as at 31 December 2020 2020 2019 Note Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 14 10,241 12,478 15 29,794 413,965 443,759 81,588 567,159 648,747 Creditors: Amounts falling due within one year Net current assets 16 36,475 38,301 407,284 610,446 622,924 Net assets 417,525 Funds ofthe charitable company: Restricted income funds Restricted funds 19 180,888 52,377 Unrestricted income funds Unreslricled funds 236,637 570,547 Total funds 19 417,525 622,924 The financial statements on pages 16 to 39 were approved by the Trustee5, and authorised for issue on .1.41.0.7J2Q2J.. and signed on their behalf by.. Mr N'uosephides Trustee Mrs T J Quinn- organ Company Secretary The notes on pages 19 to 39 form an integral part of these financial statements. Page 17 The Travel Foundation Statement of Cash Flows for the Year Ended 31 December 2020 2020 2019 Note Cash flows from operating activtties Nel expendrture 1205,3991 1209,2091 Adjustments to tash flows from non4ash items Depreciation Investment income Loss on disposal of tangible fixed assets 10 3.779 11,1771 2,759 13,0681 943 1202,7971 1208,5751 Working capital adjustments Decrease in debtors Decrease in creditors 15 16 51,794 1,826 28,388 28,005 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income Purchase of tangible fixed assets Net cash flows from investing activities Nel decrease in cash and cash equivalents Cash and cash equivalents al 1 January Cash and cash equivalen15 at 31 December 152,829 208,192 1,177 1,542 3,068 2,810 14 365 258 1153,1941 567,159 1207,9341 775,093 413,965 567,159 All of the cash flow5 are derived from continuing operations during the above period5. The notes on pages 19 10 39 form an integral part of these fin8ncial statement5. Page 18 ## **The Travel Foundation** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **1 Charitable company status** The charitable company is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charitable company in the event of liquidation. The address of its registered office is: Create Centre Smeaton Road Bristol BS1 6XN These financial statements were authorised for issue by the Trustees on 14 July 2021. ## **2 Accounting policies** ## **Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **Statement of compliance** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011. ## **Basis of preparation** The Travel Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. ## **Going concern** There is significant uncertainty surrounding the charitable company's outlook following the Covid-19 pandemic, which started in early 2020. The pandemic has had a major impact on the travel industry to the date of signing and is expected to have an ongoing impact on the industry. Due to the above matter, there is material uncertainty that casts significant doubt upon the charitable company's ability to continue as a going concern. At the time of approving the financial statements, the Trustees have reasonable expectation that the charitable company will have adequate resources to continue in operational existence for the foreseeable future as detailed on page 6 of the Trustees report. Therefore, the Trustees continue to adopt the going concern basis in preparing the financial statements. Page 19 The Travel Foundation Notss to the Financial Statements for the Year Ended 31 December 2020 Key sources of estimation uncertainty In the application of the charitable company's accounting policies, the trustees are required lo make judgements, eslimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are ba*d on historical experience and other factors that are considered to be relevant. Actual results may differ from these eslimales. The estimates and underlying assumptions are ￿vieWed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate 15 revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and lulure periods. Having given due consideration lo estimates and assumptions that form part of the carrying amounts of assets and liabilities within the financial statements, the Iruslees are of the opinion that significant judgements relate lo gifts-in-kind. The cash value of in-kind receipts is subjeelive and based on reference lo external sources al the point of re￿ipt. The value of gifts-in-kind received in the year was £16,94012019 - £38.1281. The carrying amount is £-12019 -£-1. Income and endowments All income is recognised once the charitable company has enlillement to the income, it is probable that the income will be received and the amount of the income re￿1vable can be measured reliably. Donations and legacies Donations are recognised when the charitable company has been notified in writing of both the amount and settlement dale. In the event that a donation is subject to condiliorss that require a level of performance by the charitable company before the charitable company Is entiled lo the funds, the income is deferred 8nd not recognised until either those conditions are lully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is probable that these conditions will be fulfilled in the reporting period. Grants reeeiTvable Grants are Included in the Statement of Fin8n¢ial Acts'vilies on a receivable basis. The balance of income ￿ceiVed for specific purposes bul not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-relaled conditions there is not unconditional enlillemenl lo the income and its recognition is deferred and included in creditors as deferred income until the performance-relaled conditions are mel. Where enlillemenl occurs before income is received, the income Is accrued. Government grants comprise the fair value of consideration received or receivable in respect to government provided funding lo the entity. Government grants have been recognised in line with the Accruals model where grants relating lo revenue have been recognised as other Income on a systematic basis over the periods in which the entity has recognised related costs for which the grant is intended lo compensate. Page 20 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 Grfts in kind In kind support has been recognised al the Commercial value of grftslservi￿S re￿ived, less the amount p8id by the Charity. Donations in kind are recognised when the receipt of the benefit is probable and the economic benefit can be me2sured reliably, being the amount the clients would have been willing to pay for the services or facilities received. A corresponding amount is recogniserj in expenditure in the period of receipts. Invgstment income Investment income is recognised using the effective interest method. Expendituie All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated lo the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed lo particular headings they have been allocated on a basis consistent with the use of resources, with central stsff costs allocated on the basis of lime spent, and ojeprecialion charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Raising funds These are costs incurred in attracting voluntsry income, the management ol investments and those incurred in trading activities that raise funds. Charitable activities Charitable expenditure comprises those costs incurred by the ch8rilable company in the delivery of ils 8Ctivilies and services for its beneficiaries. 11 includes both costs that can be allocated directly to SLJch activities and those costs of an indirect nature necessary lo support them. Governance costs These include the costs attributable to the charitable company's compliance with eonslitulional and statutory requirements, including audit, strategic management and Trustees, meetings and reimbursed expenses. Tangible fixed assets Tangible assets are initially recorded al cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciation and amortisatlon Depreciation is provided on tangible fixed assets so as lo wite off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows.. Asset class Office equipment Depreciation method and rate 20Okn reducing balance Page 21 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 Trade debtors Trade debtors are amounts due from customers for services performed in the ordinary course of charitable activities. Trade debtors are ￿cOgniSed initially al the transaction price. They are subsequently measured al amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charitable ompany will not be able lo collect all amounts due according to the original terms of the ￿ceIvables. Cash and Cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible lo a known amount of cash and are subject to an insignificant risk of change in value. Trade ereditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the charitable company does not have an unconditional right, al the end of the reporting period, to defer settlement of the creditor for al least tsvelve months after the reporting dale. If there is an unconditional right to defer settlement for al least Nvelve months after the reporting dale, they are presented as non-currenl Trade creditors are recognised initially al the transaction price and subsequently measured at amorh'sed cost using the effective interest method. Foieign oxchange Transactions in foreign currencies are recorded at the rale of exchange al the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet dale ale reported al the rates of exchange p￿v811lng at that dale. The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets al the rates ruling al the balance sheet dale. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity lattribuled lo non-conlrolling interests as appropriate). Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for.. 11 exchange differences on transactions entered into lo hedge certain foreign currency risks (see abovel", 2} exchange differences arising on gains or losses on non-monelary items which are recognised in other comprehensive income., and 31 in the case of the consolidated financial slalements, exchange differences on monetary items receivable from ol payable lo a foreign operation for which selllemenl is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operalionl, which are recognised in other comprehensive income and reported under equity. Page 22 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 Fund structure Unrestricted income funds are general funds that are available for use at the Trustees. discretion in furtherance of the objectives of the charitable company. Restricted funds are fvnds which are lo be used in accordance with specific reslriclions imposed by the donor or which have been raised by the Charity tor particular purposes. The Cost of raising and administering such funds are charged against the specific fund. The aim and use of each Restricted fund is sel out in the notes lo the financial slatemenls. Hire purchase and finance leasey Leases in which substantially all the risks 8nd rewards of ownership are relained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activit￿ on a str8ighl line basis over the lease term. Pensions and other post rgtirement obligations The Charity participates in a defined contribution pension scheme which is 8 pension plan under which fixed contributions are paid into a pension fund and the Charity has no legal or constructive obligation lo pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee seNice In the current and prior periods. Contributions lo defined contribution plans are recognised in the Statement of Financial Aelivilies when they are due. If contribution payment5 exceed the contribution due for setvice, the excess is recognised as 8 prepayment. Redundaney Pay Redundancy pay is recognised immediately as an expense when the charity can demonstrate ils commitment to lerminale the employment of an employee or to provide termination benefits in accordance with conlraclual arrangements. Payments are calculated in accordance with stslulory redundancy guidelines published by HM Government. Othor employee bengfits The cost of any unused holid8y entitlement is recognised as an expense in the period in which the employees service is received. Page 23 The Travel Foundation Notss to the Financial Ststements for the Year Ended 31 December 2020 3 Income from donatlons and legacies Unrestrictgd funds General Total 2020 Total 2019 Donations and legacies., Donations from companies, trusts and similar proceeds 27,156 27,156 27,156 127,025 127,025 27,156 Unrestricted Funds Restricted Total Funds Total Funds Funds 2020 2019 Donatlons Donations in kind 16,940 16,940 36,129 40,000 9,544 10,261 22,363 2.801 5,927 127.025 Travel Counsellors Sunvil Holidays Holiday Extras Midcounties Co-operative Travel ECEAT Training Others 3,279 2,347 3,279 2,347 4,590 27,156 4,590 27,156 Donations Include conlributsons made by customer5 travelling andlor booking holidays belween January 8nd December 2020, 8$ well as donations passed from other organisalions, of £10,21612019 £90,8961. Donations in kind of £16.940 12019 £36,1291 were received during the year in the form of Iravelling costs, accomodalion. meeting room facilities and other Servi￿S. Companies that in kind support was received from include Four Communications, Impact, BTO, BehaviorSMART, Good Tourism, The Urban Nomad, A28 Consulting. Confluence SLJslainability and Tomas George. The Charity is grateful for all such support. particularly in such a difficult year. £27,156 12019 - £127,025) of the income was attributable lo unrestricted funds and £nil 12019 £nil} was attributable to restricted funds The reduction in unreslricled funds is as a result of a significant loss in donations as a result of the global pandemic and Ils devastsling impact on the travel industry. Page 24 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 4 Income from charitablè activlties Restri¢ted funds Total 2020 Totsl 2019 TUI Group United Nations IUCN EBRD European Travel Commission Caribbean Tourism Organisation US Embassy SMILO Project 253,534 25,678 18,449 17,340 5,170 4,000 6,330 1,500 253,534 25,678 18.449 17,340 5,170 4,000 6.330 1,500 332,001 448,025 134,903 4,350 12,280 332,001 599,558 £nil 12019 £160,000) of the income was attributsble to unreslricled funds and £332,001 12019 £439,558) was attributable to reslrieted funds. S Investment income Unrestricted funds General Total 2020 Total 2019 Interest receivable and similar income., Interest receivable on bank deposits 1,177 1,177 3,068 £1.177 {2019 - £3,068) of the income was attributable lo unreslricled funds and £nil12019 - £nill was attributable lo reslricled fLJnds. 6 Other incomg Unrèstricted Total 2020 Total 2019 Gengral Furlough income Other income Employer's allowance 98,403 3,759 4,000 98,403 3,759 4,000 106,162 94 3,000 3,094 106,162 £106,162 12019 £3,094) of the income was attributable lo unrestricted funds and £nil 12019 £nill was attributsble lo restricted funds. Page 25 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 7 Expendituro on raising funds Costs of generating donations •nd lggacies Unrestricted Total 2020 Total 2019 Goneral Other fundraising costs Employment costs 3.790 96,542 100,332 3,790 96,542 6,157 91,952 100,332 98,109 £100,332 {2019 - £98,109} of the expenditure related to unreslricled funds and £nil {2019 £nill was attributable to restricted funds. 8 Expendituro on charitable activities ActSvFty undertaken dlreetly Activity support costs 2020 2019 De51inalions Capacity Building & Advocacy Research & Scoping Other Project Funds Governance Costs 143,011 129,969 60,605 16,940 24,690 40,841 24,638 123,194 7,675 167,701 170,810 85,243 140,134 7,675 462,961 135,992 198,757 38,066 8,069 350,525 221,038 571,563 843,845 £368,073 12019 £426,2361 of the above expenditure was attributsble to unreslricled funds and £203,49012019 - £417,609) was to reslricled funds. Page 26 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 Unrostricted funds General Restricted funds Total 2020 Totsl 2019 Deslinab'ons Capacity Building & Advocacy Research & Scoping Other Project Funds Redundancy Costs Govemance Costs 167,701 33,279 2,510 167,701 170,810 85,243 117,250 22,884 7.675 462,961 135,992 198.757 38.066 137,531 82,733 117,250 22,884 7,675 388,073 8,069 203,490 571,563 843,845 9 Anatysis of governance and support ¢￿t$ Charitable activities expenditure Unrestricted Total 2020 Total 2019 General Staff costs Redundancy costs Premises Communications and IT General office Human resources Depreciation Disposals and wrile-offs Other office costs Governance costs 156,614 22,884 19,274 1,511 2.884 5,937 3,779 156,614 22,884 19,274 1,511 2,884 5,937 3,779 93,730 28,831 1,514 8.472 21,749 3,190 944 720 8,069 480 7,675 480 7,675 221,038 221,038 167,219 Page 27 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 Governance eosts Unrgstrlcted funds General Total 2020 Total 2019 Audit fees Audit of the financial statements Other fees paid to auditors Other govemance costs 5,250 2,349 76 5,250 2.349 76 5,400 1,416 1,253 8,069 7.675 7,675 10 Net incomingloutgoing resources Nel outgoin9 resources for the year include.. 2020 2019 Operating leases- other assets Audit fees Other non-audil services Loss on disposal of tangible fixed assets Depreciation of fi'xed assets 18,060 5,250 2,349 27,608 5,400 1,416 943 2,759 3,779 11 Trustees remuneration and expenses During the year the charitable company made the following transactions with Trustees.. £Nil12019 - £1,253) of expenses were reimbursed lo the Trustees during the year. During the year the number of Trustees that were paid expen*s was Nil12019 - 11. Travel and subsistence costs were paid Its Trustees in order to attend Trustees meetings. Expenses lo facilitate Trustee meetings of £7612019 ~ £9891 were incurred. No Trustees, nor any persons connected with them, have received any remuneration from the charitable company during the current or prior year. No Iruslees have received any reimbursed expenses or any other benefits from the Charity during the year. Page 28 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 12 Staff costs The aggregate payroll costs were as follows.. 2020 2019 Staff costs durlng th¢ year wore: Wages and salane5 Social security costs Pension ¢osls Redundancy cost5 Other staff costs 472,665 45,551 17,555 22,884 61 530,254 50,678 24,400 1,406 558,716 606,738 The monthly average number of persons (including senior management leaml employed by the charitable company during the year was as follows.. 2020 No 2019 No 12 Charitable activities Fundraising Support 10 18 During the year, the charitable company made redundancy payments which lolalled £22.88412019 £Nill in compensation for loss of office. Included within this amount was £Nil 12019 £Nill, representing ex-gratia payments. The numtr)er of employees whose emoluments fell within the following bands was.. 2020 No 2019 No £60,001 - £70,000 13 Taxatlon The charitable company is a registered charity and is therefore exempt from taxation on income and gains to the extent that they are applied lo ils charitable objects. Page 29 The Travel Foundation Notes to the Financial Statsments for the Year Ended 31 December 2020 14 Tangible fixed assets Office equipment Total Cost At 1 January 2020 Additions 28,C62 1.542 28,062 1,542 At 31 December 2020 29,604 29,604 Depreciation Al 1 January 2020 Charge for the year At 31 December 2020 15,584 3,779 15,584 3,779 19,363 19,363 Net book value Al 31 December 2020 10,241 10,241 At 31 December 2019 12.478 12,478 15 Debtors 2020 2019 Trade debtors Accrued income 21,995 7,799 29,794 162 81,426 81,588 16 Credltors: amounts falling due within one year 2020 2019 Trade creditors Other t8xation and social security Other creditors 1,162 10,349 24,964 36,475 5,574 12,144 2Q,583 38.301 Page 30 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 17 Obllgatlons undèr leases and hire purchase eontracts Operating lease commltments Total future minimum lease payments under non 1100,6401 18,8861 14,3501 12,280 11,1701 89,284 83,647 115,100 22,912 11,218 18,247 3,987 8,886 4.350 12,280 Total restrl¢ted funds 31,598 439,558 417.609 1,170 52,377 Total funds 832.133 732,745 941,954 622,924 Page 33 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 General Fund This fund represents the charity's free resetves and is u$ed to develop and deliver sustainable tourism initiatives without restrictions on the basis of trustees. decisions. These funds are used betsveen the following categories.. Deslinaiions, Sustainable Practice. Research & Scoping. Other Project Funds, Governance & Fundraising Costs. TCF Turkey, Flavours From the Field (Destinations) This project, a TUI Care Foundation initiative delivered by the Travel Foundation. is helping rural, small-scale producers in soulh-wesl Turkey lo benefit from lour¢sm. The aim is lo improve the livelihood5 of farmers and small-scale producers in the Mu Jla region by facilitating the local supply of traditional ingredients and delicacies to hotels, restaurants and gift shops. The area is famous for its honey, olives. citrus frltil, almonds, hefb5, pomegranates and fresh vegetsbles. Traditional delicacies made from this fresh produce, such as oils, vinegars and jarns. will be bought by hotels for their kitchens and gift shops. We will support local producers to develop a range of goods that appeal lo hotels and customers, and we will encourage hotels to buy locally, and promote local products to their customers. TCF Jamalca, Big Up Small Business (Destinations) Our Big up Small Business project, Mth the TUI Care Foundation, is creating new opportunitses for up 10 150 small business entrepreneurs in Jamaica, $0 that more people can benefit from tourism. Small business entrepreneurs are a vital part of any economy, most people rely on them for employment and they drive innovation and opportunity. With the right conditions, tourism has great potential to enable small businesses lo prosper. Bars, restaurants, shops and acts"vities can be enjoyed by visitors and residents alike and in tum they create jobs, prosperity and contribute lo a thriving local economy. We're giving a helping hand lo a whole range of excitin9 small business in Jamaica, so they can better connect with tourists and lake advantage of the opportunities that tourism brings. Small businesses including artisans, accommodation providers, community enterprises, craft and food producers and micro excursion providers wtll receive training and marketing support lo improve their business and better understand inlemational market requirements. Ten of these small businesses, selected by a panel of experts, will receive intensive, bespoke support. TCF Cyprus, Sand, Sea and Plastic Frge (Destinatlgnsj This initiative with TUI Care Foundation aims lo bring together tourists. tourism businesses and residents across Ayia Napa. Protaras and the wider Famagusta ￿gion of Cyprus lo cul consumption of single-use plastic so that less enters the wasle stream. The project campaign Keep Our Sand and Sea Plastic Free will initially be delivered in the popular neighbouring ￿SOrtS of Ayia Napa and Protaras. We are focusing on reducing the amount of single4use plastics waste generated and discarded in resort, as well as promoting recycling. We are working with the tourism sector to reduce demand and consumption of single-use plastics such as plastic straws. cups, cutlery and hotel toiletries. The project will raise awareness of the issije with residents, school children and tourists in order lo reduce demand, and work with tourism businesses lo Change procurement practices. Vve are also collaborating with regional authorities to embed longer-lasting change. Page 34 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 IKVUNE Project (Do$tinatlons) This project, 'Transforming Tourism Value Chains ir¢ developing countries and Small Island Developing Stales {SIDSI lo accelerate more resilient, resource efficient, low caTbon development. is finding ways lo reduce tourism's carbon footprint and make il a more efficient industry in terms of water and energy use. The project Is led by UN Environment and supported by É6 million from the International Climate Initiative IIKII on behalf of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety. The four-year project aims to transform activities and serviTrs along the whole supply chain, looking al three areas Wlthin the tourism sector.. accommodation, foodlbeverages, and events. We are collaborating with UN Environment. the Waste and Resources Action Programme IWRAPI, the Technical University of Denmark IDTUI, and local partners including tourism ministries lo deliver this project in Saint Lucia and Mauritius IUCN (Sustainable Practice) Commissioned by the International Union For Conservation of Nature Mediterranean Center for Cooperation, we funds these used lo support the development of a capacity building report describing the capacity building activities conducted with Local Ecotourism Clusters,. and support the delivery of a transferability plan demonstrating how the DestiMED project acb.ons will be transferred. These activities were done to support the DesliMED project, which is a project co-financed by the European Regional Development fund that brings together protected areas to collectively develop, manage and promote ecotourism products in the Mediterranean b8sin. EBRD. Regional: Mapping supply and demand potential for tourism fsustalnable Practice) This work. commissioned by the EBRD, was to support their Inclusive Tourism Framework in the Eastern Mediterranean {ICTVVI programme. Within this, we reviewed and calegorised products typically used in tourism operations in the Medilerr8nean region and target countries befop conduct a mapping of locallregional supply-side potential of ￿levant products and developed a demand-side mapping of tourism procurement operations. ETC Project (Sustainable Practicttj The Europe8n Travel Commission IETCI is an inlernalion81 non-profit-making organisalion, whose members are the 33 National Tourism Organisalions INTOSI of Europe, whose role is lo promote tourism lo Europe. This fund was for the Travel Foundation lo draft the ETC Handbook European Sustainability Schemes. SMILO Prole¢t This fund from the Small Islands Organi5ation ISMILO) was for the Travel Foundation to develop and deliver training on Sustainable Tourism within the framework of the project 'Women on islands, leaders of sustainable tourism" CTO Prole¢t This fund, from the Caribbean Tourism Organisalion ICTOI, was lo deliver a series of Smart Recovery Planning Virtual Workshops Supporting Resilient Regrowlh for the Caribbean, a5 a partnership project of the Travel Foundation and the Caribbean Tourism Organisation. US Embassy Projeet This fund, from the Pacific Tourism Organisalion, was part of the Building Resilient Tourism Futures Project, for the SPTO and The Travel Foundation lo together develop a practical Are you Ready for Recovery Toolkit lo help the region's experience and excursion SMES adapt and connect successfully lo US and other international tourism marketplaces. Page 35 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 TCF MB Jamoi¢a (Destinations) This project, funded by TUI Care Foundation, successfully increased the number of tourists exploring and spending money outside their hotels, increasing opportunities for local businesses lo benefit economically from tourism. Using the city of Montego Bay as the demonstration model, we worked with the public sector to build the capacity of local small, medium and micro enterprises ISMME'sl such as local attractions and craft producers so that they can meet international requirements. This included reducing tounst hassle by developing customer service skills and ensuring tourists gel a warm welcome. In parallel, we worked lo improve the quality and quantity of information available for visitors on what lo see and do in Montego Bay with the aim of increasing footf811 outside hotels and spreading the economic benefits locally. This included facilitats'ng market aC￿$S for local SME'S through their inclusion in intemational excursion programmes. Lionfi$h on the Menu Project, Waterfoo Foundation {Destinations) Funded by a grant from the Waterloo Foundation, the proje¢l's goal is lo contribute to the eradication of the invasive lionfish species, supporting the conservation of native reef fish stocks around Saint Lucia. To achieve this, we aim to demonstrate the economic value of catching and selling Iionfish by building supply-chain links be￿een fishing co-operatives and tourist reslauranls. A decrease in lionfish populations will help to conserve one of the island's main tourist attractions - the coral reef, which is Saint Lucia's largest marine protected area. In the longer term, population5 of native reef fish should increase. In addition, hotels and restaurants involved will be able lo demonstrate their commitment to conservation to their customers and the project wll also benefit fishing communities. through increased incomes and conservation of local fish stocks. ECEAT Training (Sustainable Practicej Commissioned by the European Centre for Eco and Agro Tourism, this fvnd was L+sed to produce specialised guiding modules for an online training course for lour operators and guides. lo illuslrale members, COTnmilmenls to being responsible businesses and lo improve l)olh the quality of products and tourism supply chain in destinations worldwide. EBRD Croatia and Montenegro {Destinations This fund was from the Europèan Bank for Reconstruction and Development Ithe EBRD" or the 'Bank"l as part of the Inclusive Tourism Framework in the Eastem Mediterranean. Ithe 'lTFW'I. The Travel Foundation's role within this project was lo provide technical assistance lo identified benefi'ciaries, to assist them in t)ecoming more inclusive in their practices and policies, in partiCLblar by ensuring equal opportunities to young people and women,. andlor encouraging linkages with local suppliers. Page 36 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 20 Analysis of ngt assets between funds Unrestricted funds General Total funds at31 December 2020 RgstrSct9d funds Tangible fixed assets Current assets Current liabilities 10,241 262,872 36,475 10,241 443,759 36,475 180,887 Total nel assets 236,638 180,887 417,525 Unrestricted funds Goneial Total funds at31 Decèmber 2019 Restricted fund$ Tangible fixed assets Current assets Current liabilities 12,478 596,370 38,301 12,478 648,747 38,301 52,377 Tolal net assets 570,547 52.377 622,924 Page 37 The Travel Foundation Notes to the Financial Statements for the Year Ended 31 December 2020 21 Related party transactions During the year the charitsble company made the following related paty Iransaclions.. TUI Care Foundation (Chair of the Advisory Committee for TUI Care Foundation was Jane Ashton who is a Tnjslee of The Travel Found8tionl During the year. the TUI Care Foundation made available £253,534 12019 £448,0251 in grant funding for the Foundation. At the balance sheet d8le the amount due from TUI Care Foundation was £20,70012019 - £NIll. TUI Group (Chair of the Advisory Committee for TVI Care Foundation Jane Ashton is a Trustee of The Travel Foundation) During the year, TUI Group provided in-kind support valued al £nil12019 £nill. Al the balance sheet date the arnounl due lolfrom TUI Group was £Nil12019 - £Nill. The Midcounties Co-operative (Director Alislair Rowland Is a Iru51ee of The Travel Foundalionl During the year, this company and ils subsidiaries collected £2,347 12015 £22.3631 in customer donations and provided in-kind support of £Nil 12019 £6201 for The Travel Foundation. Al the balants sheet date the amount due from The Midcounties Cothoperative was £1,28912019 - £19,8011. Sunvil International Salgs Llmited (Director Noel Josephides Is a trustee of The Travel Foundation) During the year, this company and its subsidiaries collected £Nil 12019 £9,544) in customer donations for the Foundation. At the balance sheet date the amount due tolfrom from Sunvil Intemational Sales Limited was £Nil12019 - £9,544). ABTA Ltd IDireclor5 John de Vial, Alistsir Rowland and Noel Josephides are Iruslees of The Travel Foundation) During the year ABTA provided gifts in kind valued al £Nil12019 - £1,250). At the balance sheet date the amount due lolfrom ABTA Ltd was £Nil12019 - £Nill. Four Communicatlon$ Limited (Director Debbie Hindle is a trustee of The Travel Foundation) During the year this company provided in-kind support valued at £1,000 12019 £1,250). At the balance sheet d?le the amount due tolfrom Four Communications Limited was £Nil12019 - £Nill. Covoperative Holidays Limlted IDireclor Mark Alistsir Rowl8nd is a trustee of The Travel Foundation.) During the year this company provided in-kind support valued 8t £Nil 12019 £6841. Al the balance sheet dale the amount due lolfrom Crj-operab've Holidays Limited was £Nil12019 - £Nill. GSTC IDireclor Jane Ashton is a trustee of The Travel Foundation.) During the year this company provided In-kind support valued al £Nil 12019 £5711. At the balance sheet dale the amount due tolfrom GSTC was £Nil12019 - £Nil}. Page 38 The Travel Foundation Notss to the Financial Statements for the Year Ended 31 December 2020 Eulopean Travel Commlssion (Chairman of mart(eting group Elke Dens is a Iruslee of The Travel Foundation on 25 January 20211 During Ihe year, European Travel Commission made available £5.17012019 £Nill in grant funding for the Foundation. At the balance sheet date the amount due lolfrom European Travel Commission was £Nil (2019 £Nill. Impact Travel Alliance (Board member Elke Dens is a trustee of The Travel Foundation on 25 Januray 20211 During the year Impact Travel Allian￿ provided gifts in kind valued al £131 12019 £Nill. Al the balance sheet date the amount due tolfrom Impact T￿ye1 Alliance was £Nil12019 - £Nill. Page 39