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the Tourist Department with an intimate knowledge of the tourist attractions and of the facilities available, and, in addition to engaging in the distribution and promulgation of publicity, they are able to, and do, sell tours to a considerable extent. . The departmental officers in those two mam cities are backed by a chain of sub-agents m all the important cities and towns throughout the Commonwealth. These sub-agents are given a, definite financial interest in booking travel to and through the Dominion, and commission is paid on any business brought in. So far as circumstances permit, personal canvass of prospects is carried out both by the departmental officers and by the agents. . , The sales organization, through agents working on commission, operates at many points in. the United Kingdom, United States of America and Canada, South Africa, and the East In addition to these established travel agencies the Department has honorary agents who assist by the distribution of publicity material in Tientsin, Shanghai, Hong Kong, Colombo, Durban, Johannesburg, i.uva,. and Vancouver. A tourist officer is attached to the staff of the High Commissioner s Office, where there is also located a publicity officer dealing with publicity in respect of both tourist and trade aspects. A New Zealand Trade and Tourist Commissioner at Toronto carries out fairly extensive puolicity work both in Canada and the United States, and is in a position to provide, and does provide, to travel agencies and inquirers, detailed information to facilitate the actual sale of tours. Recent appointments have been made establishing Trade and Tourist Commissioners m Western America and Europe. No clear line of demarcation exists between publicity work and the selling activities of our overseas representatives, though, of course, non-official travel agencies, being interested m the sale of travel to many different parts of the world, cannot be expected to engage m extensive publicity particularly favouring this Dominion. . . . . . , , Booking offices are maintained by the Department in the mam centres of the Dominion (Auckland, Wellington, Christchurch, Dunedin, Rotorua, and Invercargill), and agents are carrying on similar work in the smaller centres (Hamilton, New Plymouth, Napier, Gisborne, Wanganui, Palmerston North, Masterton, Nelson, and Greymouth). This sales organization within the Dominion works in very close contact with our overseas representatives and agents and is essential to the completion ol the business of selling tours. . . . . The New Zealand booking organization also caters for the sale of travel m the Dominion by New-Zealanders and gives detailed information (whether tours are sold or not) and generally assists as the Department's local representatives for the organization of excursions and generally. During the past two or three years the scope of the Department's overseas organization lias been considerably widened, and the conditions under which our agents work have been clearly laid down, and effective steps taken to ensure that booking agencies are m possession of up-to-date particulars in regard to fares, routes, time-tables, &c. The process of extending the organization is continuously going on, but can be strengthened still further by the establishment, as circumstances permit, of overseas 'representatives whose business it would be to improve the contact with travel agencies operated by private interests. It is hoped that, particularly m America we can increase the caUs made upon travel agents so as to increase interest and improve the knowledge of the booking staffs of those agencies in regard to the attractions and facilities available in New Zealand. Appointments of selected and well-qualified officers overseas would be helpful in that regard and also m respect of improvement in the distribution of publicity and the provision of accurate and up-to-date detailed information for the benefit of shipping companies and general inquirers. (c) Provision and Control of Facilities within the Dominion. The Department has for years past spent considerable sums of money in the development of tourist facilities in the Dominion, and in many cases these have been provided with no expectation oi either an immediate or an ultimate financial return to the Government. It may therefore be suggested that these are not business propositions if business means the earning of a direct profit. Ihe nature o these facilities is often such as to entirely preclude any prospect of substantial revenue. Ihe provision of roads tracks, bridges, mountain huts, gardens, wharves, &c., has been undertaken m the prosecution of a policy of improving tourist facilities in the hope and anticipation that this would be lor the general benefit of the Dominion and of the tourist traffic in particular, and presumably the Government, m providing funds for those purposes, did not anticipate that the policy would be challenged on the ground that it was unbusinesslike. In other respects, facilities have been provided which, while returning some revenue, were not designed or expected to provide a revenue commensurate with the costs. As a matter of policy, Governments in past years have also provided moneys for the development, particularly in thermal regions, of equipment and accommodation for health reasons, charges being fixed at low rates to assist the non-wealthy to avail themselves of the natural health resources In some directions, also, arrangements have been made to provide for the control oi outstanding natural attractions and to prevent depredation and damage, at the same time as facilities are given for public enjoyment. In this regard the policy has presumably been one of both development and control in the national interest and in the interests of tourist traffic. In the case of certain national assets steps have been taken to part with the actual control by a system of leasing under conditions which are intended to safeguard the interests of the public, it will be recognized, however, that in those directions where the revenue return is not likely to be sufficient, leasing is not a practical proposition. . At the present time the Department enjoys the close co-operation of most, if not all, of the interests directly concerned in handling traffic to or through the Dominion. Shipping companies carrying passengers to the Dominion are constantly in harmonious contact with the Department, and the Department assists in every way possible to provide publicity material and in respect of the handling of business to mutual satisfaction.

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