H.—2.

New York World's Fair. —Witt the dismantling of the New Zealand exhibit at the Golden Gate International Exposition, San Francisco, several of the exhibits were forwarded to New York to augment the New Zealand display at the World's Fair in that city. To aid in the administration of the exhibit the Los Angeles Representative journeyed east and spent approximately three months as Acting Commissioner-General at the New York Fair. The Trade and Tourist Commissioner in Australia. The Trade and Tourist Commissioner for New Zealand in Australia reports that the restrictive effects which war conditions imposed upon travel between New Zealand and Australia in 1939 were intensified during 1940, and under existing conditions it is logical to expect that the majority of the Australian public should satisfy their recreational requirements through the media of local and inter-State holiday resorts, which are experiencing more than normal patronage. Furthermore, the demands upon individual and family budgets arising out of patriotic appeals, service with overseas and home-defence organizations, and increased taxation towards the war effort have had a seriously restrictive effect upon recreational travel both in and beyond the Commonwealth. Nevertheless, there have been several significant developments in favour of New Zealand travel during the year, as, for example, the establishment upon a firm basis of a regular air service, in relation to which the continuous demand for seats has been far in excess of carrying capacity. Also the decision by British and Colonial Administrations and business houses in Asia and the Pacific, whereby it is encumbent that furlough is to be spent in the Southern Hemisphere, is bringing to New Zealand a steady flow of visitors whose individual spending capacity is above the average. Results in the Commonwealth. —During the three years prior to the outbreak of the war the New Zealand Government Tourist Bureaux in the Commonwealth averaged £95,000 in " over the counter " receipts for travel purposes alone. The comparative figures for the year ended March, 1940, fell to £33,000, and for the year immediately closed receded still further to £13,000. In the light of the many adverse circumstances with which all travel organizations must now necessarily contend, results for the past year are gratifying, and demonstrate that the confidence which the Australian public has for many years extended to New Zealand Government Bureau services is still maintained and can be turned to good purpose when normal conditions are re-established. Publicity.—At present it is obvious that publicity efforts must be brought into line with local conditions, a policy of consolidation being adopted meantime, as opposed to the previous policy of aggressive salesmanship. With this end in view the travel staff in the Bureaux has been maintained on a basis sufficient only for essential services to agents throughout the Commonwealth and the " over the counter " public in Sydney and Melbourne ; and with a view to keeping that service before the public a moderate press campaign restricted to the leading metropolitan journals in all States has been maintained. The policy of the New Zealand Government in the Commonwealth to co-ordinate all phases of representational duties under one control in matters of policy and principle has proved of immense value, in that the versatility of the officers employed upon travel duties prior to the war enabled them to be utilized immediately for defence and supply liaison duties as necessity arose. Consequently, the process of staff adjustment was effected with the maximum economy to the travel organization and immediate efficiency to the Ministry of Supply, the requirements of which have meantime absorbed all marginal resources in accommodation, staff, and equipment. In brief compass the period under review has been one of marking time but ensuring the reinstatement of the tourist flow as soon as normal conditions again prevail. When this time arrives, Australia should constitute an excellent reservoir from which the Dominion can draw. For many years.the Commonwealth supplied 60 per cent, of the Dominion's overseas visitors, and it is reasonable to assume that when hostilities cease the good will and spending capacity of Australian citizens for recreational purposes will be much higher than in the older Continents and that air transport will have placed the time factor on a basis comparable with inter-State travel. Queenstown. The tourist season for the year was a busy one in spite of the generally unsettled conditions prevailing. Bookings were heavy throughout the season, and it was pleasing to note the presence of visitors from the Dutch East Indies, Malay, and Hong Kong. Some visitors from the United States also visited Queenstown. During the year the Department's gardens at Queenstown and the tracks and huts in and around Lake Wakatipu were kept in good order. Expenditure in general was kept to a minimum. Te Anau Hotel. The Manager reports that, in spite of restrictions on travel caused by war conditions generally, accommodation receipts have been well maintained during the season. This has been helped considerably by the excursions organized by the Dunedin Bureau during Labour week-end, King's Birthday, and the Easter period, and also by parties arranged by the Wellington Bureau for the Milford route. During the winter months improvements were made to the gardens and lawns and to the lake frontage of the hotel. The period September to March shows an increase on the previous season's returns,

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