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hoped to have the Pavilion and Blue Baths available for use by next tourist season. A nine-hole golf-course is being made in the Sanatorium grounds, and should prove a useful aid to health to convalescent patients, also to act as an overflow to the present links. A launch, comfortable and roomy, was built in Wellington for Lake Waikaremoana, and is in every way a great improvement on the old boat, which has outlived its usefulness. The new road from Rotorua to this popular resort is practically completed, and the first motor went through recently. As outlined in the last annual report, it will be necessary for the Department, to go into the matter of enlarging the accommodation at the lake to cope with the increased traffic. The new road is one of exceptional beauty and grandeur. At Te Aroha, an X-ray plant has, with the assistance of the Borough Council, been installed, and is proving of great benefit to the district. The new swimming-bath is proving very popular, and is being well patronized. The Waitomo Caves and Hostel are still holding pride of place as one of the Dominion's " star " resorts. The new tennis-courts, bowling-green, &c., are now accomplished facts, and should prove an additional attraction to visitors. An accommodation-house has been built by Mr. Johnson at Te Puia Springs, thus enabling visitors to take advantage of the curative waters at this health resort. A lease of the springs has been given under stringent conditions, and the bathhouses, &c., are being renovated. At Morere Hot Springs, No. 2 bathhouse was lined and painted. Concrete paths at the cottage were put down, and a trellis fence erected. Levels for the new pipe-line have been taken and the new pipes ordered. In the South Island a substantial grant was made for protection work and renovations to huts, suspension bridge, &c., at the Maruia Springs, and the work is being put in hand by the Public Works Department. A new hut on the Chancellor Ridge, between the Franz Josef and Fox Glaciers, is being built by Messrs. Graham Bros., for the Department, and will be of great use to alpinists. Tracks have been made at the Fox Glacier and a suspension bridge erected. Extensive repairs have been carried out at the Burke Hut, on the Haast, and several other minor matters attended to in regard to tourist resorts on the West Coast. At Queenstown the work on the road between the Memorial Gates and the old town wharf, to prevent erosion by the lake, is in hand, and when completed should form a fine promenade for visitors. The Domain grounds, plaving-greens, &c., have been well maintained. The question of an additional bowling-green to cope with the number of players is under consideration. The new buildings at Glade House are practically completed, and should be in full workingorder by next season. The Milford Track is reported to be in good order, several new bridges, culverts, &c., having been put in during the season. The Public Works Department's Engineer is at present on the track in regard to hot showers, drying-rooms, &c., at the different huts. The radio telephone which was partially destroyed by the Glade House fire is being re-erected and will be in working order shortly. The new hostel at Milford Sound has received very favourable comments from all visitors, and when the grounds around it are laid out with lawns, flowers, &c., will leave little to be desired from the most captious. The regular service from the Bluff to the various beautiful sounds in Fiordland by the s.s. " Hinemoa " has been greatly appreciated and when better known will be more utilized by visitors. This service obviates the return walk over the track and gives the traveller an opportunity of visiting all the other Sounds under comfortable and congenial conditions. Special efforts were made during the past year to encourage traffic to the South Island resorts from Australia. In order to encourage traffic on the Melbourne-Bluff service, a very moderate inclusive price was quoted for a sixteen-days trip. Although it was late in the season when the campaign was started, encouraging results were achieved, and next season, no doubt, will see better results. The regrettable loss of the s.s. " Manuka " was undoubtedly responsible for a number of cancellations by intending visitors. It is understood that the company will put another boat into commission for next season. During the year the big Matson liner " Malolo " visited the Dominion with a, large party of American tourists, and, although only staying for three days, was estimated to have left approximately £8,000 in the country. I am pleased to say the steamer is returning again next season with another large party of visitors. All travel arrangements in New Zealand were carried out by the Department, and the promoters of the cruise were delighted with the way the work was done on their behalf. The American Express Co., Pacific Tours Co., and many other American travel firms sent parties during the year, and have appointed the Department as their recognized agents to handle their clients on arrival. The chief and many of the secondary tourist resorts were visited during the year by Mr. S. J. Collett, Acting General Manager, and other members of the staff, and the different progressive bodies conferred with 011 matters affecting their districts. An officer has been loaned to the High Commissioner's Office so as to give first-hand information regarding the Dominion's resorts and sport, and the oversea representatives in Australia have done excellent work in conjunction with the Publicity Department in window displays, films, exhibitions, travelling through the various States giving lectures and following up inquiries. The year's work has been very satisfactory, a great deal having been accomplished, the staff, without exception, working loyally and enthusiastically in the interests of the Department and the travelling public.