DEPARTMENT OF TOURIST AND HEALTH RESORTS AND PUBLICITY (ANNUAL REPORT OF THE).

Appendix to the Journals of the House of Representatives, 1939 Session I, H-02

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1939. NEW ZEALAND.

DEPARTMENT OF TOURIST AND HEALTH RESORTS AND PUBLICITY (ANNUAL REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency.

The Hon. the Minister in Charge op the Department of Tourist and Health Resorts and Publicity to His Excellency the Governor-General. Wellington, 22nd June, 1939. I have the honour to submit to Your Excellency the report of the Department of Tourist and Health Resorts and Publicity for the year ended 31st March, 1939. Frank Langstone, Minister of Tourist and Health Resorts and Publicity. His Excellency the Governor-General of New Zealand.

ANNUAL REPORT OF THE GENERAL MANAGER OF THE DEPARTMENT OF TOURIST AND HEALTH RESORTS AND PUBLICITY. Sib, — Wellington, 15th June, 1939. I have the honour to submit the following report on the organization and work of the Department of Tourist and Health Resorts, with which is now incorporated the Publicity Department, for the year ended 31st March, 1939. I have, &c., L. J. Schmitt, General Manager. The Hon. Frank Langstone, Minister of Tourist and Health Resorts and Publicity.

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ANNUAL REPORT. Once again it is pleasing to bo able to announce yet another record year's working, as the figures in this report show. Despite many adverse circumstances—notably the fear of European war and the drought and bush fires in Australia—new high levels were reached both in the number of visitors to the Dominion and also in the Department's total sales. The former figure is 21,762, including 8,708 who travelled by " cruise ship " (the first time that over 20,000 tourists have visited New Zealand in any one year), while totaj ••sales amounted to £564,787. Sixty-one per cent, of our visitor^"cAfrie (exclusive of those by "cruise ship") from Australia, 16-1 per cent, from Great Britain, 13 per cent, from other British countries, 6 per cent, from the United States of America, and the balance from various other countries. The following figures have been supplied by the Government Statistician regarding the numbers and country of origin of tourists. 1936-37. 1937-38. 1938-39. Australia .. .. .. .. 12,802 14,502 16,692 United Kingdom .. .. .. .. 2,138 2,175 2,105 Other British Countries .. . . .. 1,303 , 1,689 1,705 United States of America .. .. .. 683 724 783 Foreign .. .. .. 371 442 477 17,297 19,532 21,762 No doubt one of the main causes of the increase in total value of sales is the fact that there is a larger amount of money in circulation within the Dominion itself. Though separate statistics are not kept, all the Government Bureaux and sub-agents report an increase in the number of sales to New-Zealanders travelling within the country, while more and more New-Zealanders are availing themselves of the accommodation at the hotels conducted by the Department. This is very gratifying and pays a tribute to the successful advertising campaign carried on by the Department, as well as to the satisfactory management of the hotels. The comparatively large amount spent on overseas publicity has also borne fruit, as shown by the above table, there being an increase over the last record period of 11-4 per cent, in the number of overseas visitors. While it is impossible to state definitely the amount of money spent in the Dominion by tourists annually it is estimated that during the past year New Zealand benefited by approximately £1,500,000. All overseas officers of the Department make a point of keeping in close contact with travel agencies ; indeed, the close co-operation between them has a considerable bearing on the increase in overseas sales. The up-to-date and comprehensive printed itineraries supplied to the agents are much appreciated, and from information received no other country gives so much useful assistance. Results show that this co-operation is most valuable. Much thought and attention is now being devoted to encouraging travel to New Zealand in what may be called the " off season." Ship and hotel accommodation is difficult to obtain during the summer period, and hotel-proprietors would welcome increased numbers of visitors during the winter. An increase in this traffic would encourage them to extend premises and services, and so lead to more accommodation being available when most needed. The institution by the Shaw Savill and Albion Co. of the route from England via South Africa by the luxurious liner " Dominion Monarch " must have a big effect in stimulating tourist traffic from both those countries. The maiden voyage showed that the practically untapped number of South African potential visitors is large, and advance bookings for the next voyage are heavy. Thi; new route will also relieve the shortage of shipping accommodation, besides providing a new direct route of interest and charm. In North America, in addition to special advertising campaigns, the Department has staged courts at the Canadian National Exhibition at Toronto, where our exhibit received a gold medal; at the Golden Gate International Exposition at San Francisco and at the New York World's Fair. The Golden Gate Exposition opened in February, and nearly all Pacific countries are represented. The Department's Pavilion, modelled on a Maori meeting-house, is distinctive and refreshing, and the exhibit, which is purely one of tourist attractions, though modest when compared with the exhibits of some other Pacific countries, is located in an excellent position and is attracting much attention and favourable comment. Large supplies of literature have been provided for distribution, and many inquiries are being received from people interested in travel in New Zealand. The wisdom of participating in the exposition has already been proved. Planned on a larger scale is the New Zealand exhibit at New York, where it occupies the same building as the British and Australian exhibits. Depicting primary and secondary production activities as well as tourist attractions, the exhibit will be most attractively laid out. It is of special interest to note that the dioramas and working models on view in both exhibits are all the product of the Department's own film and advertising studios at Miramar. Turning to internal travel, as has been above stated, New-Zealanders are steadily increasing their patronage of the Department's Bureaux services and hotels. Many appreciative letters have been received from overseas visitors concerning the services rendered by the Department both as regards the preliminary drafting of itineraries in the visitor's own country and the attention given on and after arrival in the Dominion.

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The shortage of accommodation at all resorts has been mentioned before, and attention requires to be drawn again to this matter, which is becoming acute. Credit is given to several hotel-proprietors at various places who have already increased and improved their premises. The shortage of high standard accommodation is particularly noticeable at one of the chief ports of arrival. Internal Travel. A feature of the winter sports season was the institution of " snow trains " —special week-end cheap excursions from Auckland and Wellington to the Chateau Tongariro. These were very well patronized and proved very popular. Many organized party tours were conducted, notably three from Australia —the Reso Tour (in co-operation with the Victorian Railways), the South Australian Farmers' party (in conjunction with the South Australian Government), and the Victorian Scottish party (with Messrs. Burns, Philp, and the Victorian Scottish Union). From the United Kingdom came a party under the auspices of the Workers' Travel Association in conjunction with the Department. In addition, short visits were paid by the Hamburg-Amerika liner " Reliance " and the Canadian Pacific vessel " Empress of Britain." The Cunard liner " Franconia " also called. A greater influx of tourists is expected for the Centennial celebrations. A special Centennial tour is being organized in Great Britain, and, of course, reference to the celebrations will be contained in all departmental overseas publicity. The Department will be responsible for a special pavilion at the Exhibition itself, and all preparations to handle the expected numbers of overseas visitors are in hand. New Works and Maintenance. Among major new works and maintenance services carried out during the year by the Department have been the erection of five new dressing-rooms in the Women's Aix Baths and structural alterations to the main Bath building at Rotorua ; erection of a new building for the Art Department of the Film and Advertising Studios at Miramar, and the renovation of baths, appliances, &c., at Te Aroha and Morere. The hotels at Waitomo and Waikaremoana have each had new refrigerating-plant installed. A new steel bridge was built on the Milford Track, while assistance was given in the erection of a new hut for trampers in the Dart Valley, Otago. Staff. Mr. J. W. Collins, 0.8. E., retired on superannuation from his position as Trade and Tourist Commissioner for Canada and the Eastern United States, and was succeeded by Mr. R. M. Firth, of the Los Angeles Office. Mr. R. W. Marshall was appointed to Los Angeles. Expedition from the American Museum of Natural History. During February and March, 1939, an important expedition, known as " the Michael Lerner Australia and New Zealand Expedition of the American Museum of Natural History," visited this country in search of data on the habits of our deep-sea big-game fish. The Department co-operated with the expedition in a most thorough manner, attaching two officers, one of whom took several thousand feet of cine film. In addition, the Department offered the Museum all of the working models and dioramas exhibited at the New York World's Fair and the San Francisco Golden Gate Exposition at the close of these exhibitions. This offer was gratefully accepted. Very valuable and considerable publicity will result from this action, as the Museum plans to stage a permanent special exhibit covering the cultural and physical development of the Dominion. A copy of the departmental film is also to be forwarded for screening at the special film shows given by the Museum. In return the Museum has offered, and the Department has gratefully accepted, copies of all films taken by the expedition. Publicity. The field for the distribution of publicity literature has continued to expand steadily during the past year, and the coming Centennial exhibition and celebrations to be held from November, 1939, to May, 1940, have added considerably to the total output. A special publication entitled " New Zealand Centennial, 1840-1940," with an issue of 30,000 copies, was widely distributed overseas, while a single-sheet folder running to 50,000 copies was prepared and dispatched to all parts of the world as an introduction to the occasion. An attractive poster printed by the " silk-art " process at the Government Film and Photographic Studios at Miramar also came in for wide distribution among all overseas agencies and to local travel firms and the various Bureaux operated by the Department. A special advertising campaign was carried out in the United States and Canada during the year and, as in the previous season, this resulted in a series of very fine designs in colour and black and white being published in a number of the leading journals and magazines. The effect of this was felt in increased business through all travel with a resultant improvement in the numbers of tourists visiting the Dominion. Apart from the advertising mentioned above, extra large quantities of publicity booklets and folders were distributed through the various agencies, while standard and 16 mm. films, lantern slides, and photographs were all used in the general advertising work of the Department. In Australia a very comprehensive plan of advertising was adopted, covering all the leading newspapers and journals of the big cities and spreading into the smaller towns of the various States. An excellent response was recorded throughout the Commonwealth, leading to a record number of visitors arriving in the Dominion. The United Kingdom was covered by a carefully planned campaign, through the leading papers and periodicals, while lectures illustrated and supported by both standard and 16 mm. films played an important part in the success of the general scheme, many visitors being attracted to New Zealand as a result. The Department was responsible for the Dominion's court at the Glasgow Exhibition. This secured a good deal of favourable publicity.

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In the Dominion a full programme involving newspaper advertising, direct mail, and poster display was productive of excellent results. The production and distribution of literature and posters reached a new high-level, agents in all parts of the world being kept well supplied with these important media for advertising the Dominion. Radio broadcasting was availed of more generally as a direct advertising medium both in New Zealand and in overseas countries during the year under review, and the general result of this work has proved most gratifying. Illustrated articles on New Zealand were widely distributed overseas and were given considerable prominence in the publications using them, thus drawing a great deal of attention to the Dominion. As has been the case in former years, a considerable amount of valuable publicity was provided through the efforts of lecturers and travellers generally in various parts of the world. Department's Film and Advehtising Studios. The Studio Manager reports as follows Films, Photos, Display Material, &c. —The production of all these types of publicity materii',l continued at a steady pace at the Department's advertising studios. Increasing demands continue to be received from all parts of the world, consequent upon the ever increasing use of visual advertising methods for travel propaganda. A noticeable feature has been the great number of requests for loan of films of New Zealand from within the Dominion, particularly from schools. The Department makes every effort to fill these wants, realizing the value from a national point of view. In addition to the travel films that have been produced during the year, a very comprehensive film of the activities of the Plunket Society was made ; also one of an industrial nature was prepared in conjunction with the campaign to " Buy New-Zealand-made Goods." During the year a start was made on the Centennial film to mark the progress of the Dominion though its first one hundred years, and production on this is now well under way. This branch of the Department's service is being made increasing use of by other Departments of State. During the year the various items of equipment referred to in last year's report came to hand, and these have been the moans of improving considerably the quality of the film and photographic output, and also enabling the production of 16 mm. sound films. Authority was given for the erection of an additional building adjoining the studios for housing the art branch. Up-to-date equipment was installed to enable the production of high-grade exhibition and window-display units, posters, show-cards, &c. In order to meet the competition of similar material produced by other and older countries the work has to reach a very high standard, and with the equipment now available this is being done. In addition to the usual small display units, many large exhibits for the Glasgow, San Francisco, and New York Exhibitions were prepared by the studios. They included working models of some of the principal scenic attractions of the Dominion, the most outstanding being replicas of thermal activity, Milford Sound, and the West Coast glaciers. Work in this branch has also commenced on the Department's Court for the Centennial Exhibition. The Department has again carried out its own newspaper advertising with very successful results. The radio has been used twice weekly for fostering local travel. Financial. The revenue collected from the various activities controlled by the Department, and the expenditure from the Consolidated and Public Works Fund for the past six years, was as follows : — Return of Receipts, 1933-39. 1933-34. 1934-35. 1935-36. 1936-37. 1937-38. 1938-39. £ £ £ £ £ £ Receipts .. .. 65,077 75,634 84,564 100,678 115,973 124,134 Return of Expenditure, 1933-39. 1933-34. 1934-35. 1935-36. 1936-37. 1937-38. 1938-39. £ £ £ £ £ £ Consolidated Fund .. 91,571* 103,028* 124,151* 148,389* 175,120* 203,200* Public Works Fund .. 13,510 12,880 13,683 16,789 23,159 24,551 Ticket sales at the Government Tourist Bureaux for the past six years were as follows :— £ £ 1933-34 .. .. 308,255 1936-37 .. .. 480,789 1934-35 .. .. 343,933 1937-38 .. .. 533.847 1935-36 .. .. 402,148 1938-39 .. .. 564,787 The estimated revenue to New Zealand from overseas tourists visiting the Dominion during the past six years has been as follows : —■ £ £ 1933-34 .. .. 450,000 1936-37 .. ..1,000,000 1934-35 .. .. 800,000 1937-38 .. .. 1,200,000 1935-36 .. .. 850,000 1938-39 .. .. 1,500,000

* Includes expenditure on overseas publicity.

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APPENDICES. APPENDIX A. (EXTRACTS FROM REPORTS OP CONTROLLING OFFICERS.) The Trade and Tourist Commissioner in Canada and the Eastern United States. The Trade and Tourist Commissioner reports that a national advertising campaign on lines similar to those followed in 1937-38 was conducted during the year, selected media of the United States and Canada being utilized to carry announcements. Definite evidence of its stimulating effect on better-type prospects was received, and reports from travel agencies indicated a greater general interest in New Zealand amongst those clients who habitually undertake the more expensive tours. Only certain class publications were utilized, and these were particularly selected for the fields in which they were distributed, such as women's appeal, business men, the literary type, and the educational field. To appeal to winter sports followers the American Ski Annual was used, and to cover the travel-agency trade the Official Steamship and Airways Guide. The publications used had a total circulation of 7,250,000 readers. Wherever possible four-colour advertisements were used, and these were the subject of much favourable comment not only from travel agencies, but also from advertising authorities in both the United States and Canada. This magazine advertising was supported by a series of announcements in the newspapers throughout Canada, and thus it was possible to cover the whole of the Dominion for a limited period of the year with inexpensive announcements. A direct-mail scheme was instituted and is currently being operated with a selected list of 50,000 names. The result of this effort will not be evident for some considerable time, but it is calculated to produce concrete returns amongst those people to whom general advertising has been directed. General Publicity.—ln the field of general publicity wide dissemination of information has been achieved by the judicious distribution of literature, including a considerable amount of material drawing attention to the New Zealand Centennial celebration. By newspaper and magazine articles supplied from both Toronto and Los Angeles offices, by distribution of photographs, frequent lectures to groups by staff members, by steady circularization of lantern slides and 16 mm. films, and by the placing of window-display material in travel agencies at principal points New Zealand has gained much favourable notice. Wide publicity, not of a tourist nature, has been obtained for New Zealand by the appearance in newspapers and magazines of articles referring to Dominion legislation and Governmental undertakings. Tour Sales.—During the year under review an intensive programme of personal canvassing of travel agents throughout the United States was undertaken to stimulate sales of inland tours in New Zealand. Four officers visited various sections of the country, called on leading travel-service executives and branch offices, and outlined the attractions, the improved facilities, and the services rendered to visitors in the Dominion, and left with each selling unit complete details of New Zealand's tours and rates. The immediate result of these calls was an appreciable increase in the numbers of itineraries requested by agencies for submission to their clients, and a tangible increase of tour sales cleared through Toronto and Los Angeles offices. Agencies were encouraged to promote group tours, and, despite unsettled economic conditions in North America affecting such promotions generally, several group movements were very successfully undertaken. A noticeable improvement in the number of private groups proceeding to New Zealand primarily for sporting reasons was evident and leads one to the conclusion that more emphasis might well be placed on this particular feature of New Zealand. A ticket interchange between New Zealand and Australia brought into effect during the year by the shipping companies has removed a disability which previously affected stop-over business in New Zealand, and the advantage of the new arrangement will be more evident as the traffic increases. An increase in the number of passenger bookings actually handled through the Toronto office of 87£ per cent, was achieved, with a financial increase of 55 per cent. Other tours which have been booked in New Zealand as the result of introductions from this office should greatly appreciate the value of the business emanating from Toronto. To achieve this result a large number of individual special itineraries were planned ; thus there is ample evidence that the sales resulting from the itineraries submitted from this office are encouragingly high. Many other itineraries have been submitted to prospective visitors in printed form, and in our special pamphlet " See All of New Zealand," wherein more or less standardized tours are offered for sale to the public through travel agents. Displays at Exhibitions.—Displays at leading exhibitions were undertaken during the year, and each involved considerable detail in planning and execution.

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" Chicago Daily News " Third Annual Travel Exposition, Hotel Stevens, Chicago, 28th April to Ist May. —The space made available enabled an attractive display to be made. Large pillars carrying transparencies flanked the central attraction, a striking pictorial enlargement of Milford Sound. On side panels photographic enlargements and posters were displayed, while various Maori curios were also shown. Films (16 mm.) were screened several times daily in a special theatre, and a considerable quantity of literature was distributed, many inquiries being followed up from Toronto office. There were 150 exhibitors, including many from foreign countries, and the total attendance was approximately 80,000. Newspaper write-ups prior to and during the Exposition gave a share of publicity to the exhibit. Travel agents in Chicago accepted the showing as evidence of interest in attracting business into their channels. Canadian National Exhibition, Toronto, September, 1938. —This was the Jubilee year of the Canadian National Exhibition, and the official opening of the British Government's building and the Exhibition as a whole was carried out by Right Hon. Lord Stanley, P.C., M.P., Secretary of State for Dominion Affairs, the proceedings being broadcast over a nation-wide network. The total attendance was 1,656,000, the best single day being 226,000, or an average daily attendance of over 118,000 for the fourteen days the Exhibition was open to the public. Extensive structural alterations were made to the Dominion's exhibit space on this occasion, all pillars being removed, and the usual fence replaced by a low barrier, with Maori motif superimposed. More favourable arrangements were also made for the display of films, which were shown for four hours daily, and at a conservative estimate at least 100,000 persons watched the screenings. The whole of the display material was prepared by the Department's Publicity Studios in New Zealand, and the exhibits, chiefly of a tourist nature, attracted much favourable comment. The Progress Display, drawing attention to New Zealand's Centennial in 1940, was a particularly fine piece of work. About 6,000 folders, together with 250 maps and posters, were distributed to selected inquirers. The Board of Directors of the Canadian National Exhibition Association again awarded a gold medal for the excellence of the complete exhibit. New York's World Fair, opening officially on 30th April, also occupied a considerable amount of time, and incurred much travelling to and from New York during the year under review. Here the space consists of a section of the British Pavilion, measuring 10,000 square feet. A general display of New Zealand scenic attractions, sporting facilities, industrial and commercial accomplishments will be presented in a very well-executed setting. The amount appropriated for this representation was in comparison with the funds available to other exhibitors, exceedingly small, and yet it is confidently felt that when the display is completed it will prove a good investment for the Government. Activities on behalf of other Departments. —Various activities were undertaken for New Zealand Departments. These included the Health Department, Stores Control Board, Mines Department, Post and Telegraph Department, and the Internal Affairs Department. Extra Activities. —In so far as the Commissioner himself is concerned, this past year has been a particularly busy one, for, in addition to the regular work, many other duties have been undertaken in his capacity as representative of the Government. These have included attendance at official ceremonies, such as the opening of the Dominion of Canada Parliament, receptions tendered by the Lieutenant-Governor of Ontario, civic gatherings, Canadian National Exhibition functions, &c. He has also been called upon to make several visits to New York in connection with the preparation for the New York's World Fair, this in itself being a particularly arduous task. The Toubist and Publicity Repbesentative in Westebn Amebica. The New Zealand Government Tourist and Publicity Representative for the Western United States reports, regarding tourist traffic development, that, consequent on the national advertising campaign, it is interesting to note that requests for literature and information on travel to New Zealand were received from some thousands of people (excluding obvious school-children) with coverage from every one of the forty-eight States in the United States, and also from the following countries outside of the United States : Canada, Philippines, India, Japan, Rumania, Canal Zone, Germany, Puerto Rico, Alaska, Mexico, Holland, Ecuador, Italy, Palestine, Hawaii, Brazil, Cuba, Chile, England, Argentina, Kenya Colony, Turkey, Columbia, Jugoslavia, Dutch East Indies, Ceylon. The above list indicates the wide coverage of publications chosen for national advertising. The number of requests from within the United States was, in order of States, as follows : California, New York, Washington, Wisconsin, Pennsylvania, Michigan, Minnesota. Since it takes at least forty-eight days and a minimum of $700 to visit New Zealand it will, be realized that the number of requests received by mail is not a true indication of the success of the Department s advertising, especially as it is stressed in all advertisements " consult your nearest travel agent, &c. The travel business in the United States is becoming more and more a specialized business, and a recent survey published estimated that 86 per cent, of steamer fares to points outside of the United States was sold by travel agents. The policy adopted in this territory has been to foster relationships with such agents, both in publicity and by servicing, so that all recognized travel agents will be in a position to give accurate information on New Zealand travel. This servicing takes the form of : (a) Bulletins of information sent out at frequent intervals : (b) Supplies of literature : (c) Window displays, posters, and publicity material: (d) Personal visits by members of the staff: (e) Preparation of itineraries for agents to submit to their clients : (/) Contact of agents' clients at Los Angeles port prior to departure for New Zealand. This is a valuable service and is appreciated by such clients and travel agents.

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The territory covered by Los Angeles office has close contact with 185 agents in California, Washington, Oregon, Texas, Utah, Arizona, Colorado, Nevada, Montana and New Mexico and Vancouver, 8.C., and 34 agents in other States. Sale of New Zealand Tours and Exchange Orders. —During the year 140 itineraries representing travel for 228 persons and valued at $48,50000 were prepared for agents for submission to their clients, while the amount of $18,750-00 was received in cash for New Zealand tour sales, as against $5,300-00 for 1937-38. General Tourist Traffic and Publicity. —The tendency of shipping companies and travel agents in the United States to sell round-trip travel to Australia with the inclusion of New Zealand merely as a port of call en route —allowing only one day in the Dominion- has been broken down by increased knowledge of travel agents of New Zealand attractions and also by the new policy of the Matson Navigation Co. in permitting visitors to stop over in New Zealand on round-trip tickets to Australia. This has promoted substantial business for New Zealand. Further to strengthen and increase the knowledge of travel agents of New Zealand conditions of travel and itineraries, a handbook, Travel Agent's Manual, has been prepared and distributed to all travel agencies in the United States and Canada. Films and Slides. —As circumstances permitted, talks and lectures utilizing 16 mm. films and lantern slides were given by the staff of the office, and a number of films and slides were used by individual lecturers and New-Zealanders residing in or en route through the United States. Activities for other Departments. —During the year the office has handled a number of inquiries for various Departments, the chief of which were Customs Department, Government Printing Office, Scientific and Industrial Research, Post and Telegraph Department, Public Works Department, Agriculture, and Broadcasting. The Trade and Tourist Commissioner in Europe. The Trade and Tourist Commissioner advises that the office is now well established and its existence is extensively known through official and commercial circles in Europe. The office has continued to take advantage of opportunities for free publicity, either general or of a tourist or trade character, and it is pleasing to note that there are many direct and indirect results by way of inquiries on a very wide range of subjects. The distribution of printed publicity material through hotels, tourist agencies, schools, and generally is continually being increased. Several window displays have been made, and illustrated articles for newspapers and periodicals have been placed throughout Northern and Western Europe. Photographs have been widely distributed, and lecturers have been supplied with material —informative and illustrative —for their use. Contact with shipping companies and travel agencies has been maintained and extended. Negotiations have been completed for an extensive production and showing of New Zealand films (with German and French dialogue) throughout German and French speaking territories. Smaller-sized films have been lent to schools and other institutions, and an increased supply of this type of material will be needed. It is hoped to arrange that reduced-sized copies of films which are being made in Europe from Dominion material will be distributed through commercial channels. The number of inquiries relating to or bearing upon possible travel to and through New Zealand has increased, but in some cases the inquiries are found to be more particularly concerned with the possibility of emigration to New Zealand. The Trade and Tourist Commissioner in Australia. The Trade and Tourist Commissioner reports that the volume of tourist visitors booked through the New Zealand Government Tourist Bureaux in the Commonwealth during the year which concluded on the 31st March last constitutes the highest figure recorded, 3,568 tours having been handled by the Bureaux during the year. Similarly, the total value of tours booked and introduced has shown another record —namely, £123,592. Of this sum, 35 per cent, is absorbed by the shipping services and 65 per cent, is distributed throughout the Dominion. The increasing confidence in which the New Zealand Tourist Bureaux are held by the Australian public is also demonstrated by " over the counter " sales, which for the past year were ten times the total taken in 1930 and double that received in 1935. Official statistics disclose that visitors from Australia have over the past three years represented 60 per cent, of the total of New Zealand's tourist influx from all sources, and New Zealand extends a similar measure of travel reciprocation to the Commonwealth. The increasing volume of inquiries at the Department's Bureaux is largely due to the personal recommendation of previous visitors. Nevertheless it is essential that the Department reinforce and widen this base by sustained and up-to-date press and other publicity. To this end and in terms of the policy laid down by the Department during recent years a progressive publicity campaign has been carried out throughout the Commonwealth, of which the outstanding feature has been a " national advertising campaign " in the press of all States. An effective medium of sales publicity arises out of the use to which the New Zealand Government publicity films are being employed and applied throughout the Commonwealth and shipping services which trade to Australian ports. Co-operation has been developed between the two principal Australian news-reel organizations whereby aspects of the Dominion's scenic attractions and current happenings are now an integral portion of the majority of news-reels circulating in the Commonwealth. In many cases these have in turn been accepted by overseas exhibitors for incorporation in international gazettes.

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In direct travel selling, however, the most effective medium has proved to be 16 mm. films exhibited by members of the Bureaux staffs, for which purpose the Sydney and Melbourne Bureaux have been equipped with up-to-date portable sound projectors for use as occasion demands in all the principal centres to groups, clubs, and other selected audiences. In addition, radio, exhibition, and window displays, hoardings, posters, pamphlets, hotel racks, mailing-lists, &c., are all pressed into service where circumstances and potentially productive results appear to warrant the expenditure involved. A chain of New Zealand agencies exists from Cairns to Perth who, for the most part, are trained travel executives by reason of their primary functions in travel, shipping, banking, stock and station agency, &c., and possess the confidence of the leading citizens of their districts. All these agents are promptly serviced by return or air mail from Sydney or Melbourne, and during the past year were in the aggregate responsible for introducing direct business to the remarkable total of £27,300, of which sum nearly 50 per cent, was introduced by the Department's Honorary Agent at Brisbane, who renders to the Queensland public a service which is almost equivalent to that given by the Department's staffed Bureaux in Sydney and Melbourne. In Western and South Australia and Tasmania, the New Zealand Bureaux work in active cooperation with the respective State Government Tourist Bureaux, and it is significant that during the past year these Bureaux have introduced more New Zealand business than have their combined competitors in the same travel field. This arises substantially by reason of the fact that in all these States whole-hearted co-operation has been available from the Director and his staff and continuous liaison and service has been maintained. During the year official administrative visits were made to all seven capital cities and numerous minor centres. Wherever possible personal contact was made with all interested travel organizations, commercial executives, press, Government Departments, civic authorities, and other leading citizens. This also provided opportunity to adjust machinery to meet local requirements, stimulate interest in the Dominion, and publicize its travel facilities. It is an established policy of the New Zealand Bureaux to extend full co-operation and friendly consultation to all reputable travel organizations, whether they are engaged in competitive or co-operative activities on behalf of New Zealand travel promotion. For example, whilst the Department's relationship with Cooks, the State Automobile Associations, and those banking houses who have established travel services to their clientele is keenly competitive in the realm of travel selling, upon aspects such as publicity and sales policy a very happy and mutually co-operative spirit prevails, the Department's publicity brochures, posters, &c., being distributed freely and impartially wherever they will serve the national purpose. Consequently, whilst it is gratifying to record increased bureaux turnover, it is the more satisfactory to present the following comparison of total temporary visitors from the Commonwealth to New Zealand, as recorded by the Government Statistician, which embraces the efforts of all travel organizations and shows in percentage the relativity of Australian visitors to the total of all temporary visitors to the Dominion :— Year. Numbers. Percentage of Total. 1936 .. .. .. .. .. .. 5,726 57-7 1937 .. .. .. .. .. .. 6,853 60-4 1938 .. .. .. .. .. •• 7,848 60-9 1939 .. .. .. .. .. .. 7,984 61-1 The " cruise tours " of New Zealand organized by the P. and O. and Orient companies have now become a permanent travel feature and possess the dual merit of widening New Zealand publicity channels and affording these short term visitors sufficient insight into the Dominion's attractions to encourage their early return. Also their recommendation to their friends at home is most valuable. During the past year eight P. and O. and Orient liners visited New Zealand for cruise purposes, and through the Department's Bureaux channels alone provided the Dominion's hotel and transport organizations with £28,000 for services rendered, from 8,700 people, the highest yet on record in any year. It is estimated also that at least a similar sum was expended through other channels in Now Zealand as a result of these cruises. In considering the prospects for the approaching year many factors have to be weighed, but, broadly, the indications are that a good year can be anticipated, more particularly if increased provision can be made in shipping and hotel accommodation, which for the past two years has been inadequate in relation to the business offering during the Christmas and Easter periods. The Centennial Celebrations, coupled with the Exhibition, will have the effect of greatly stimulating visitors from the Commonwealth, more particularly in the direction of group travel of which the projected visit of the Australian ex-service men is the outstanding example. As against this, certain economic factors, which are well known, have not yet run their course. Nevertheless, secondary industry in the Eastern States is being rapidly expanded, and the primary-production outlook is excellent at the moment, all States for the first time in seven years having received bountiful rainfall, with the result that crop prospects are excellent. If this condition continues, spending capacity in both country districts and city areas augurs well for a travel season at least equivalent to the very satisfactory results which have been attained during the past year. London Representative'. The London representative of the Department reports that the year has been the busiest that Bureau has experienced, and but for the unfortunate state of international affairs in Europe it would have been, without doubt, a record one. To have come through a most disturbing year with such

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good results reflects the strength of the Department's position in Great Britain. Travel to the Continent of Europe received a bad setback and, unfortunate though the causes were, they enabled a vigorous campaign to be proceeded with, which was warmly received by travel agents in Great Britain. During the year relations with travel agents have been very widely extended. Some two hundred agents are now in active co-operation, and the Department is adequately represented in every town of any consequence in England, Scotland, Wales, and Northern Ireland. This work among travel agents is the surest foundation on which to build for future business. To-day New Zealand is wellknown among people in the travel and shipping industry, and the increasing number of bookings received through agents is an indication that the Department's policy of working in close co-operation with them is fully justified. Literature, posters, and display material, as well as detailed travel information, are distributed regularly, and there is constant touch by correspondence and personal visits. In the field of tourist publicity much has been done during the past year. This feature of the Department's work is a big factor in stimulating tourist traffic to New Zealand and in publicizing New Zealand generally. Close contact has been maintained throughout the year with the Publicity Section and this was particularly in evidence during the Glasgow Exhibition. In regard to publicity, a very important development took place during the past year. This was the formation of a New Zealand Public Relations Council. The Council, which consists of representatives of the New Zealand Marketing Organizations and the Government, is proceeding with an active and very far-reaching policy of publicizing all features of New Zealand in Great Britain. During the year the Department issued three new brochures especially for use in Great Britain— (1) " Ahoy! New Zealand," containing concise information about steamship routes and fares to the Dominion ; (2) " Travel in New Zealand," a brochure explaining the services of the Department and presenting a number of specimen itineraries ; and (3) " Trout, Salmon, and Deep-sea Angling in New Zealand waters." These brochures have proved of great value and have been welcomed, particularly by travel agents. The publication of a Quarterly Bulletin entitled New Zealand News and Views is now a very important feature of the Department's publicity work and has met with warm approval from people and organizations interested in New Zealand. This magazine is being distributed by direct mail to approximately five thousand individuals, and the selective list of addresses will be extended with each issue. An important move as regards co-operation with Australia was made during the year. Some ten to twelve thousand Australians visit England each year on round-the-world tickets. Many have not visited New Zealand, but are potential visitors on their homeward voyage. _ With this in mind a reciprocal arrangement was entered into with the London office of the Australian National Travel Association for the interchange of addresses. On the part of the Department the Australian National Travel Association is kept supplied with the names and addresses of New Zealand visitors to England, and the Australian National Travel Association in return supplies the Department with the names and addresses of Australian visitors. Australian visitors to Great Britain will now receive on arrival a specially illustrated leaflet entitled " Why not Return via New Zealand." Further co-operation with the Australian officials has been made whereby all answers to inquiries received by the London office of the Australian National Travel Association now include one piece of New Zealand literature in addition to the Australian brochures that would normally be forwarded. In return one Australian brochure is now included in the packages of New Zealand literature distributed to inquirers. Plans are in hand for taking full advantage of the opportunity afforded by the Centennial celebrations to publicize New Zealand in Great Britain. As a means of drawing attention to the Centennial a special Centennial tour is now in course of organization. Wide publicity has been given to the tour, and the active co-operation of the Shaw, Savill and Albion Line, New Zealand Shipping Co., and the Australian National Travel Association, as well as all travel agents, has been secured. The organizing of party tours during the past year was handicapped owing to the international situation, but, in conjunction with the Workers' Travel Association, a round-the world tour with New Zealand as the main objective was successfully arranged. The party consisted of eighteen members, and some six weeks were devoted to an extensive tour in New Zealand. As in past years, returning tourists have expressed appreciation for the service rendered by the Department. Tourist Agent, Te Aroha. The revenue figures disclose another increase, and the attendance has likewise shown improvement. Mokena Geyser.—The work of constructing a catchment basin and storage tank has not as yet been undertaken. When completed the structure will add considerably to the attractive appearance of the geyser in its natural bush setting. Tepid Baths.—Renovation in the form of lining and painting interior of the tepid mineral-water swimming-bath has added to its attractiveness, and it is daily becoming more popular. The electric baths are increasing in popularity due to having them advertised on the screen per slides. The Vapour Bath, which has been in disuse, has been renovated and is fast becoming a popular treatment. New flood lights were erected on the bowling-greens at the beginning of December, and have made a vast improvement to night bowling. The usual maintenance has been carried out, and considerable repair work of a minor nature has been effected, such as relining sides of pools with heavy timber, repainting stained portions, replacing worm-eaten sections, &c.

2—H. 2.

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A very heavy gale during the latter end of January, 1939, spoilt the garden display and caused damage to trees and shrubs. The Domain entrance gates and front fence were erected in red brick and tubular iron railings, adding to the attractive appearance of the Domain. The mountain tracks have been regraded to Bald Spur and all kept in excellent condition. A large number of people ascended the summit (3,126 ft.) this season. Main drives in the Domain have been recovered. Mineral waters of Te Aroha in flavoured bottled form have been popular with the public again. Rainfall for the year amounted to 70-89 in., as compared with the previous year's fall of 55-65 in. Passenger Boohing. Impetus has been given to this service, resulting in turnover in sales rising by 73 per cent. Distkiot Manager, Rotorua. The District Manager reports that it is again pleasing to record an increase in revenue, the actual receipts over all sections representing an increase of over 5 per cent, above the previous year, and constituting a record for the ofiice. In the electrical section a reduction in tariff charges was brought into effect on the Ist January, 1939, estimated to benefit the consumers to the extent of approximately £3,200 per annum. These' concessions were very well received by the public, and should have the effect of further encouraging the use of electricity. The actual revenue during the year under review totalled £30,024, an increase of £3,737 over the previous year. Allowing for the reduced charges over two months, this must be regarded as highly satisfactory. Notwithstanding the high standard set last year in respect of baths and games fees, these sections held their own during the year under review. The actual increase in the baths fees was £327, due very largely to the popularity of the Blue and Ward Baths. Although it is the peak period it is interesting to record that from the 24th December to 7th January, 32,918 bathers took advantage of the facilities at the Blue and Ward Baths ; in addition, 5,335 spectators paid admission to the Blue Bath. These figures speak for themselves in regard to the popularity of the baths. It is pleasing to note that greater use has been made of the Ward Baths throughout the year. This is encouraging and, with the view of further popularizing this building and advertising the facilities offered, a large Neon flame-coloured sign was erected a few months ago over the main entrance. In January the New Zealand Junior and Intermediate Swimming Championships were held in the Blue Baths. The function was very ably controlled by the Bay of Plenty Swimming Centre, and competitors from all over New Zealand attended. The meeting was extremely popular, and the Department co-operated to the fullest extent to ensure the smooth running of the event and the success of the championships. Delegates from the various centres were very glowing in their praise of the baths and their appreciation of the Department's efforts. The main treatment building (massage and special-treatment department) maintained the high standard set the previous year. This is really as much as can be expected, for the staff and present facilities available worked to full capacity. The same position applies in regard to the Sanatorium, although in this case a further increase of £363 was recorded, which brings the revenue for this institution equivalent to approximately the peak set in pre-depression years. Considerable essential constructional repair and renovation work has been carried out by the Public Works Department on the Department's behalf to the main bath building during the year. It is again gratifying to record an increase in the revenue received from the playing-areas. A total increase of £220 is shown, £71 of which is from the tennis-courts, the balance (£139) being increased golf fees. The total revenue from the golf-course, although only of nine holes, was £763, and is consistent with an indication given last year that a further increase should be recorded. There is still room for considerably more improvement to the course, and it is recommended that a further sum be made available during the ensuing year. The dry weather has had a very detrimental effect on the greens, and it will be necessary to reticulate the course for watering purposes. The passenger-booking section records an increase in the sale of tours of £1,038, representing a 17 per cent, increase. The usual arrangements were made in regard to the organization of sightseeing, accommodation, luncheons, transport, Native receptions, and guiding of the large conducted parties from visiting cruise liners to New Zealand. Generally speaking, all arrangements worked smoothly and were the subject of favourable comment by the visitors. Electric. —During the year extensions to the lines have been made as follows :— (1) Ngongotaha Valley Road : 2 miles 30 chains. 6,600 volt. (2) Payton's Road, Okere : 40 chains. 6,600 volt and 230 volt. (3) Oturoa Road : 60 chains. 6,600 volt and 230 volt. (4) Dalbeth's Road : 1 mile 20 chains. 6,600 volt and 230 volt. (5) Tarukenga : 1 mile 10 chains. 6,600 volt and 230 volt. (6) State Mill, Waipa : 1 mile 40 chains. 6,600 volt and 230/400 volt. (7) State Houses : 20 chains. 6,600 volt and 230/400 volt. In addition to the above, extensions and reconstruction have been carried out as required to give supply to new consumers adjacent to existing lines. Work on the change-over has been continued, and during the year 251 premises have been changed over, bringing the total to 1,166. It is expected that the work will be completed during the forthcoming year.

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Maintenance of the distribution lines has been regularly attended to, and in connection with the change-over the necessary reconstruction of lines has been carried out. The Okere plant has been maintained in running order and has been operated one shift per day. The following table sets out the units generated and purchased for the year and the new load connected:— Purchased from Generated T , Public Works Department. at Okere. ° a ' 1938-39 .. .. 5,429,159 208,750 5,637,909 1937-38 .. .. 4,404,321 226,371 4,630,692 Increase for year .. .. .. .. 1,007,217 Maximum load for year : 1,356 kVA., 6 p.m., on 7th July, 1938. No. kW. New consumers, light and heat .. .. .. .. 220 563 • 2 Extensions, light and heat .. .. .. ..176 281-4 Ranges.. .. .. .. .. .. ..60 366-4 Motors .. .. .. .. .. .. ..97 88-0 Total new load for year : 1,299-0 kW. The above figures indicate the development and increase in load for the year just completed. The annual report for the year ending 31st March, 1927, recorded that it was the first year in which the total units exceeded 1,000,000. A year is now recorded in which the increase alone in units exceeds 1,000,000. Water-supply. —Eighty-six new connections were made to the water-supply system during the year. A general scheme of reticulation in an otherwise more or less unserved area was also undertaken in Pukuatua, Hinemoa, Eruera, Amohau, Peneha, and Tarewa Streets in connection with the Housing Department's and Rotorua Borough Council's general housing scheme. For this purpose 5,800 ft. of 4 in. cast-iron mains were laid, thus providing a very efficient service both from a fire-fighting point of view and for water-supply purposes in a rapidly developing area. Drainage.-—Six new connections were made to the sewerage system. Maintenance-work has been carried out on mains, manholes, branch drains, and pumping-plant. Generally speaking, the system has operated quite satisfactorily. General Plumbing. —The usual maintenance-work has been carried out both from a plumbing and sanitary point of view in all departmental buildings. This includes water-mains, branch services, roofs, spoutings, down-pipes, and sanitary fittings in the baths, sanatorium, gardens, and other sections of the Department's activities. Several visits were also paid to Waitomo Caves and Te Aroha to effect repairs to the hot-water service and steam-boiler fittings. Round Trip.—This trip has operated smoothly and given valuable service in providing the necessary means for tourists to inspect the very interesting thermal areas in the neighbourhood of Waimangu, Lake Rotomahana, and Mount Tarawera. Waimangu Round Trip is recognized as the most comprehensive trip in this region and is probably the most popular in the district. During the ofi-season due attention was given to the maintenance and general overhaul of launches. All necessary repairs have been carried out to tracks and footpaths during the winter months, as well as to wharves, slipways, &c. The fluctuations in the level of Lake Rotomahana cause some difficulties at times, and it is necessary to raise or lower the landing-stages accordingly. Similar conditions apply in regard to slip-ways on this lake, but, fortunately, there is no difficulty on Lake Tarawera. Lakes Rotorua and Rotoiti and Ohau Channel.—The low level of these lakes has caused a certain amount of difficulty and danger to the launches plying for hire and to private craft, and it was necessary to erect twenty-two new beacons on dangerous rocks, shoals, and submerged logs. Some difficulty and inconvenience was also experienced in the Ohau Channel by reason of submerged logs and stumps of fallen willow-trees. On several occasions it has been necessary to send staff with block and tackle to haul the stumps out. A small landing was erected on the banks of the Ohau Channel at the landingreserve for the convenience of boatmen. Buildings. —All departmental buildings —baths, Sanatorium, staff residences, sports pavilions, fences, playing-material, &c. —have been maintained in reasonably good condition. Gardens. —A very high standard was set in the sanatorium grounds this year, the floral display being particularly good, notwithstanding the lengthy periods of dry weather experienced during this summer. The condition of these grounds and the fine exhibition of flowers has been the subject of numerous complimentary remarks being paid by overseas visitors. It was also very gratifying to receive recently a very good testimonial to the condition of the grounds and general brightness of the floral display from a well-known New Zealand nurseryman and horticulturist. Although the lack of rain has to some extent been detrimental to the satisfactory upkeep of playing-areas (bowling-greens, tennis-courts, croquet-lawns, and golf-links), these have, nevertheless, been kept in good order. Particularly during the tennis tournament in December and bowling tournament in February the playing-areas were in exceptionally good condition and were the subject of favourable comment by visiting players. An improvement has been effected at the Hinemoa Street entrance to the gardens, and fronting the Ward Baths, by the removal of a number of failing trees, levelling the site, resowing in grass, and replanting with a number of temporary ornamental trees.

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A number of small oak-trees raised from seed from the Royal Windsor Park were planted on Arbor Day. A public function at which His Worship the Mayor (Mr. T. Jackson) officiated was held. A fine collection of native plants has also been raised in readiness for planting in the coming spring. Cut flowers have been forwarded at regular intervals to Waikaremoana Hotel and to other departmental institutions. A supply of bedding-out plants was also forwarded to the Chateau, Morere Hot Springs, and the publicity studios at Miramar, Wellington. All paths, drives, hedges, verges, &c., have received the usual seasonal attention and been maintained in good order. Reserves. —Rock walls have been erected at certain points in the Kuirau Reserve to protect pedestrians. In this reserve a belt of native trees has been planted and is doing well. This will be a definite improvement when the trees are fully developed. At Whakarewarewa all paths have been dressed with pumice and water-tables received the necessary attention. Boundary fences have been overhauled and now are in reasonably good condition in all reserves. Noxious weeds have been kept in check, and generally all reserves under the Department's control have been maintained in good order. Balneologist, Rotorua. The Balneologist reports that in all sections of the financial returns receipts show a gratifying increase. The year has been an exceptionally busy one ; a considerable number of overseas travellers have visited the spa to take the " cure." Sanatorium. —The resources of the institution have been inadequate to deal with the numbers of patients requiring treatment. The Sanatorium has a bed-state of forty beds, but the average number of patients throughout the year has been 41-74 and at times, by installing beds on the verandas, the accommodation has been extended to 52. At the present time there are 45 patients awaiting admission. During the year approximately 12,000 baths and 14,000 special treatments have been given to Sanatorium patients, and the number of complete cures and alleviation of chronic cases has testified to the value of the spa work. The Main Baths.—During the past year this establishment has been taxed to the utmost. Massage and Physiotherapy. —The massage staff has been very busy throughout the year. With the steady increase of patrons for treatment, space for service has become very restricted. Buildings.—Five new dressing and pack rooms and a staff room have been added to the women's Aix and pyretic departments, and this has relieved the congestion in this section. During the past five months considerable structural alterations have been carried out in the main bath building. Summary.—This past year, with its increasing number of patients, has shown all too plainly the need for a larger and more up-to-date establishment. Manager, Waitomo Oaves and Hotel. The Manager reports that the year has been a record one as far as revenue is concerned, the figures being nearly 8| per cent, higher. Visitors.—Approximately 24,000 people visited the caves and 9,700 stayed at the hotel. The stream of visitors to the hotel has been steady, but, apart from a few days at Christmas and on cruise nights, very few people had to be turned away. It has been noticeable this year that more people have stayed for longer than the usual one night, and quite a number stayed for a week or longer. Improvements, Buildings, &c. —Practically all the necessary repairs have been carried out by the stall. Freezing-plant. —During the year the old-fashioned freezing-plant has been pulled out and replaced by modern frigidaire equipment. Apart from being much cleaner and more efficient there is practically no noise from the new plant. This is a contrast to the old machine, as people were continually complaining of the noise, and it had to be stopped altogether at night-time. Farm. —There have been practically no losses as far as farm stock is concerned, and the hotel has been supplied with milk and cream throughout the year. From twenty to thirty pigs have been kept, and as it costs nothing to feed them there has been a profit of over £100. Manager, Lake House, Waikaremoana. The Manager reports that there has been a further increase in the number of visitors compared with 1937-38 season, and again, in spite of additional bedrooms, the shortage of accommodation has, at rush periods, been very acute. The new additions have been much appreciated by the guests. The new cooler installed before Christmas is a big asset. The camping-ground has been exceptionally well patronized. All huts are already let for next Christmas holidays. The regatta was once again a most successful gathering, outboard and inboard motor boats coming from all parts of the North Island to compete. The house outbuildings, grounds, boats, huts, &c., have been kept in good order throughout the year. Caretaker, Morere Hot Springs. The Caretaker states that early in the year there was fairly extensive flooding, and this, together with the main highway being closed for a period, caused a slight shrinkage in revenue. However, Morere has become very popular. Apart from the baths, hundreds of visitors express appreciation of this scenic resort. The Manager, Milford Track and Hotel. The Manager reports that the Milford Track route has been well patronized during the past season. The number of visitors exceeded any previous year, and accommodation, both at the huts and the Hotel Milford, was crowded.

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The weather during December and January was very unfavourable, every second day|[being wet, which, made the Track very heavy going. However, no delays to itineraries were caused, y. The " Franconia," 20,000 ton White Star liner, called at Milford Sound on 22nd April, 1938, en route from Sydney to Wellington on a world cruise with a full list of passengers. She spent about an hour in the Sound, coming right up to Bowen Falls and also going into Harrison's Cove. The weather was ideal. The inter-colonial steamer " Maunganui " made fifteen calls to Milford during the season, landing 170 passengers. Mr. A. J. Bradshaw, of the Southland Airways, made three successful landings in this district during the past year. He landed twice on the sandspit on Lake Ada, and once on the beach at Deep Water Basin, about one mile from the Hotel. This landing at Deep Water Basin is quite good at low water, weather permitting, and can be used in case of emergency. Quite a number of aeroplanes have flown over the Sound this season, flying as low as 700 ft. to 1,000 ft. This trip is becoming very popular. If a landing-ground were established it might prove an asset to this isolated district. The formation of the new Milford -To Anau road is available for over seven miles. This has added to the attraction here, and almost all tourists arriving have availed themselves of a trip up the new road and to the Chasm. The Milford Track has been maintained in good order, despite adverse weather conditions. The Sounds cruises have been well patronized during the season. Fishing has been good, also some good collections of greenstone have been made. Trout-fishing in the Cleddau River has been very good. The Manager, The Chateau Tongariro. The Manager reports that the position disclosed is satisfactory, the total revenue for the year being £36,266 15s. Id., an increase over the total revenue received for last year of £8,413 13s. 4d., easily a record for any one year. All items of revenue show an increase over the previous year, the most outstanding being : Accommodation, £6,426 lis. 9d. ; hire of equipment, £882 13s. 6d. ; lounge-shop sales, £828 4s. 4d. The amount taken for hire of equipment and guiding, &c., £2,155 Bs. 5d., is very satisfactory. Due credit must be given to Mr. B. Skardarasy, whose work will be mentioned later in this report in this connection. Buildings.—No new buildings, with the exception of a garage to house the new truck, &c., were erected during the year. General maintenance-work on all buildings and plant has been carried out. jßoads, Tracks, Mountain Huts, &c. —The walking-tracks, &c., surrounding the Chateau have received the usual attention. The road to the Salt Hut on Scoria Flat should shortly become an accomplished fact, and though the work will not be completed this year the formation now reaches Upper Scoria Flat, and if the climatic conditions are reasonable this portion will be metalled and will be of use for the coming winter traffic. The Maungatepopo and Waihohunu Huts have been inspected several times during the year and are in good repair. Cartage and Transport.—The purchase of a new truck during the year has more than fulfilled hopes. A careful check of all expenses, including depreciation and interest on capital, shows that there has been a saving of at least £300 in cash to the Department, and naturally a much better and increased service has been provided. The wear-and-tear on the truck on these roads will be considerable, but every care is being taken to keep the truck in good repair. Golf-course. —The golf-course is in wonderful condition according to the views expressed by guests. The two to three months' dry spell which was experienced throughout the country parched most courses, but, owing chiefly to the heavy dew experienced at this altitude, the Chateau course has remained beautifully green and a pleasure to play on. Ski-ing. —Ski-ing conditions during the winter were reasonably good and, with the exception of severe blizzard conditions during September, when all roads were blocked on two occasions, the season could be called an excellent one. The sum of £15,948 was taken in revenue during the months of July, August, and September, as against £10,605 for the previous year and £8,408 for the year before. Mention has already been made of Mr. Skardarasy's great assistance in this connection, and it is considered that the Department's action in bringing him out to New Zealand doubly repaid all expenses incurred. The New Zealand championships will be held at the Chateau next year, and one month of the season (August) is already booked to capacity. If the weather conditions are at all favourable the coming season will be at least as good as the last. Staff. —Social amenities which are due to staff living in a special building away from the Chateau itself are provided, including golf, tennis, and free pictures. Tournaments are also arranged for the staff. The Caretaker, Little Barrier Bird Sanctuary. The Caretaker reports that steady progress has been made with improving the house and surroundings during the year. All work done previously is being maintained, fences kept in repair and noxious weeds eradicated and destroyed. Wild cats have been destroyed. Many hundreds of rats have been trapped. The bellbirds are very numerous everywhere. This is to a great extent due to the killing of vermin and also to the attraction of the birds with milk, porridge, and sugar, also fruit, figs, and flowers and berries. Tracks receive attention. The coast-lines as far as it is possible have been frequently traversed. The Caretaker advises that no floating refuse oil has been discovered. Cascade Creek Camp. This camp has been practically rebuilt and considerably enlarged both as regards sleepingaccommodation and the provision of meal facilities. As a result there has been greatly increased patronage, which can be considered most satisfactory.

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APPENDIX B. List of High Ascents from the Hermitage, Season 1938-39.

The season has been particularly poor owing to the very adverse weather experienced, but it has been notable for the three excellent climbs of Mount Tasman, La Perouse, and Mount Cook by Miss C. Irving, of Albury.

List of High Ascents at Franz Josef Glacier, Season 1938-39.

Approximate Cost of Paper.—Preparation, not given; printing, 870 copies), £18 15s.

Authority: E. Y. Paul, Government Printer, Wellington.—l 939.

Price 6d.]

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Date. Party and Guide. Name of Peak. Height. Route and Remarks. Ft. Feb. 1 Messrs. C. L. Mahan and A. Mount Cook .. 12,349 Jackson Feb. 5 Messrs. E. Rhodius and Mount Cook .. 12,349 Sehmitt-Ehrenberg, with Guides Bowie and Cook Feb. 25 Miss C. Irving, with Guides Mount Tasman .. 11,475 Bowie and Brooks Mar. 1 Miss C. Irving, with Guides La Perouse .. 10,101 Bowie and Brooks Mar. 4 Miss C. Irving, with Guides Mount Cook .. 12,349 Bowie and Brooks

Date. Party and Guide. Name of Peak. Height. Route and Remarks. 1938. Ft. A Paul; Guides G. McElroy Mount Drummond 8,200 Ascent from Aimer Hut by Aimer Glaoier and P. G. Graham and Newton Rocks. Descent same Way. Deo. 29 C. H. Turner, A. Lees, A. MountLendenfeldt 10,450 Ascent from Pioneer Bivouac on Pioneer Anderson Ridge to Marcel Col., and thence by northeast ridge. Descent same way. Dec. 29 P. Gillett, S. Conway, H. Mount Lendenfeldt 10,450 Same route. McDowoll, and T. Newth 1939. Jan. 3 F. Gillett, S. Conway, H. Mount Haidinger 10,059 Ascent from Pioneer Bivouac on Pioneer McDowell, and T. Newth Ridge and thonce by south-west ridge to summit. Descent same way. Feb. 3 C. Pearson, B. Hughes, P. /Mount Bismark 8,445 / Traverse from Pioneer Hut on Fox Glacier, p . s -< Mount Roon 7,275 < traversing all three peaks to Defiance ±Tms LMount Moltke .. 6,509 I Hut. [From Aimer Hut to Graham's Saddle to Feb. 5 A. Anderson, A. Wilkinson .. Both peaks off 10,022 J col south of Do La Beche and round east Minarets \ 10,058 ) face and up south snow slope to top. Descent same way. Feb. 7 M.Smith .. .. .. Mount Moltke .. 6,509* \ . . , , , - ,, r > „ „ , Feb. 7 Wm. Fraser .. .. Mount Roon .. 7;2 75t/ Ascent and descent from the Defiance Hut " * Traverse. f Ascent.