THE TOURIST RESORTS

Taranaki Daily News, 3 October 1932, Page 9

THE TOURIST RESORTS

JONGARIRO AND WAITOIVIO

SALE OR CLOSING DOWN.

SAVING ROTORUA LOSSES.

The expenditure on tourist resorts is severely criticised, in the report of the National Expenditure .Commission, and proposals are made for closing some of New Zealand’s best-known tourist facilities. The net logs for the year was £89,273. Figures for 1930.-1931 showed that, without exception, the tourist activities resulted in very substantial losses. Under certain circumstances, tourist trade might be an important branch of commerce, ■ but it was open to question whether the benefits derived by New Zealand from the tourist traffic counterbalanced the substantial loss .incurred by the Crown in the operation of the various resorts. The commission was of opinion that the cost was far in excess of the value of the additional tourist traffic secured by State activities.

ANNUAL LOSS OF £3OOO.

The Chateau, Tongariro National Park, was now the property of the Government, states the report, and it was estimated that, without allowing for depreciation and interest on capital, there would be an annual loss of £3OOO. It was obvious that the property should be disposed of to private enterprise, if at all possible, but, failing' this, it would be more economical to close the Chateau and to appoint caretakers to look after the asset. As an alternative the possibility of utilising the building for one of the social service activities of the Government should be explored. Members of the commission expressed their conviction that the development of tourist traffic and the running of hostels should be left to private enterprise. Therefore . every effort should be made to dispose of the resorts, either by sale or lease. The Tc Aroha Springs resort should be handed over to the local authority, to which most benefit accrued, or else it should be sold.

ROTORUA OPERATIONS.

The Rotorua activities for 1930-1931 showed a loss of £25,000, minus £5831, profit on the electric system. It was evident that the town was substantially dependent upon the activities of the Government, and some contribution should be obtained from the local authority as a set-off against the loss borne by the. Crown. The water and drainage system should be handed over to the borough and the capital invested in the system be deemed to be a loan, on which interest and sinking fund should be paid. The Rotorua .Sanatorium should be amalgamated with King George V. Hospital. The Waitomo Caves Hostel was earning only a very small interest return. It should be sold.

Lake House, Waikaremoana, should also be sold, and, in the meantime, every endeavour should be made to minimise the loss.

Every effort should be made to render the Morere hot springs undertaking wholly self-supporting. The Mount Cook Hermitage was at present leased,-but the rental return did not cover interest. There Was an annual loss of £l5OO, but no remedy appeared possible..

QUEENSTOWN ■ GARDENS.

Queenstown Gardens and grounds should be delegated to the control of the local authority receiving most benefit from them. The available tourist traffic at Glade House, Milford Hotel, and the Milford Track did not justify either the capital which had been expended or the annual operating loss incurred. Every effort should be made to dispose of the properties, but failing this, the hostels should be closed.. An annual loss of £6500, of which £3OOO was in respect of operating costs, could not be justified. Getierallv speaking, the expenditure, both capital and revenue, had been too lavish, and not justified by results. The tourist offices at Auckland, Wanganui, Rotorua, Wellington, Christchurch, Dunedin and Invercargill should be closed, and the work be left to the Railway Department and interested organisations. This should result in. a direct saving of £4700. ’ The necessity for an efficient publicity service was realised, but there was a tendency to undue extravagance. The publicity service should be reduced by at least 25 per cent., a saving of £5OOO.