H.—2

1926. NEW ZEALAND.

DEPARTMENT OF TOURIST AND HEALTH RESORTS (ANNUAL REPORT OF THE) BY THE MINISTER OF TOURIST AND HEALTH RESORTS, HON. W. NOSWORTHY.

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

The Minister in Charge of Tourist and Health Resorts Department to His Excellency the Governor-General. Wellington, 30th April, 1926. I have the honour to submit to Your Excellency the report of the Department of Tourist and Health Resorts for the year ended 31st March, 1926. W. Nosworthy, Minister of Tourist and Health Resorts. His Excellency the Governor-General of New Zealand.

ANNUAL REPORT OF THE GENERAL MANAGER OF TOURIST AND HEALTH RESORTS. Sir,— Wellington, 21st April, 1926. I have the honour to submit my report for the year ended 31st March, 1926. I have, &c., B. M. Wilson, General Manager. The Hon. W. Nosworthy, Minister of Tourist and Health Resorts. ANNUAL REPORT. In my last report I expressed the hope that the improvement shown in the Department's affairs would continue, and lam pleased to inform you that this hope has been justified. The Department's revenue shows an increase from £47,263 to £55,391 —an improvement of £8,128 ; while the expenditure has advanced from £66,294 to £70,794, or an increase of £4,500. This amount (£70,799) would have been considerably less had it not been for the unprecedented damage done to Milford Track during the winter by avalanche and flood. It was necessary to replace many bridges and culverts, as well as to repair damage to huts. To enable this to be done a large staff had to be employed throughout the season, resulting in an increase in the expenditure on the track from £3,418 to £6,091 for the season. As a result of the work done by the extra hands the bridges and huts are now in first-class order, and it is hoped that the expenditure will be a non-recurring one. In this connection it is interesting to note that the revenue and expenditure figures are gradually approaching each other. In 1920-21 the difference was £42,000, and this year it is £15,000. The total direct cost, therefore, of working the whole Department is £15,000. It is, of course, impossible to estimate the indirect value of the tourist traffic to New Zealand. For instance, from the visit of the Americans on the " Carinthia," which touched only at Auckland and Wellington on a three-days visit to New Zealand, the Tourist Department took in actual cash from the promoters of the tour the sum of £1,100, made up of rail, motor, and accommodation charges. There is naturally no record of what members of the party spent outside this amount. I understand from Messrs. Raymond and Whitcombe, of New York, who organized the tour and chartered the steamer, that it is proposed to return this year, and, if possible, to extend the time in New Zealand to permit of a visit to the South Island, particularly to Milford Sound. In this connection I should like to refer to an impression—and, to my mind, a quite erroneous one —which seems to prevail in part of the South Island, that the Agents of the Department in the North concentrate their energies on sending visitors to spend their time in the thermal regions instead of including the South