NEW HOTEL FOR FRANZ JOSEF

Press, Volume XCI, Issue 27638, 20 April 1955, Page 12

NEW HOTEL FOR FRANZ JOSEF

Cabinet Approves £670,000 Plan

REPLACEMENT OF FIRE LOSS

(New Zealand Press Association) WELLINGTON, April 19. Cabinet has approved Works Ministry plans for the building of a new modern hotel at the Franz Josef Glacier, to replace the building destroyed by fire last year. . This was announced today by the Minister in charge of Tourist and Health Resorts (Mr E. H. Halstead) The Minister said the total cost, including electricity supply and water am s ge system, would be £670,000. The cost included furnishings valued at £32,000. Works Minister supervision costing £48,000, and a hydro-electric scheme which would cpet 100,000, and would supply part' of the Waiho Valley as well as the hotel.

The hotel would accommodate 130 guests, said Mr Halstead. “The Franz Josef Glacier is a key point in the toprist trade in the South Island, and a new hotel is essential if the tourist potential is to be maintained and developed,” said Mr Halstead.

The capital cost at first sounds high, but excluding the need for power and water supply, and fire prevention in an isolated locality, and taking into account the high transport costs of building materials. capital cost a square foot is compare i e with that of first-class hotels recently erected in New Zealand.

“The , accommodation, of excellent class, will allow of three or four tariff rates, and it is considered that there are reasonable prospects of meeting direct working expenses, with a sufficient margin to cover interest and depreciation.” Mr Halstead concluded.