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1903. NEW ZEALAND.

DEPARTMENT OF TOURIST AND HEALTH RESORTS. (SECOND ANNUAL REPORT.)

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

The SuPEBINTENDENT OP TOUEIST AND HEALTH RESORTS -to the Hon. the MINISTER IN Charge. Sik, — Department of Tourist and Health Eesorts, Wellington, Ist May, 1903. I have the honour to submit herewith the second annual report of the Department of Tourist and Health Resorts for the year ended the 31st March, 1903. I have, &c, T. B. Donne, Superintendent. The Hon. Sir J. G. Ward, K.C.M.G., Wellington.

The year under review has proved a very busy one for the Department. In addition to new works and projects undertaken, which are elsewhere referred to in a more or less detailed manner, a very large amount of routine work has been involved in the management of such places as the sanatorium for invalids, the mineral baths, gardens, parks, thermal reserves, public offices, electric lighting, water-supply, tea-tent, boating services, &c, at Eotorua; baths, gardens, &c, at Te Aroha; the accommodation-house at Lake Waikaremoana; the spa, accommodation-house, baths, gardens, &c, at Hanmer; the Hermitage Hotel and outlying rest-houses at Mount Cook; and the hotel at Pukaki. These operations will be more specifically referred to later on. It is gratifying to observe that each of the direct revenue-producing branches of this Department's work show substantial financial increases over last year's results. Correspondence relating to New Zealand as a country for settlement, a tourist resort, a land for sport, and place of business has been very large, and has come from such countries as Finland, Sweden, Germany, France, Switzerland, Eoumania, Canada, United States of America, South America, Philippine Islands, India, China, Japan, Straits Settlements, Great Britain, Australia, and the South Sea Islands. The number of letters (including departmental memoranda) received and despatched from the Head Office during the year totalled over 18,800. This branch of the work is growing rapidly as the Department becomes more and more known abroad. During the two years in which the Department has been in existence the volume of traffic to the colony has greatly increased, and the Department may fairly take credit for a proportion of this augmented passenger business, as the result of its advertising policy and its development of the spas and scenic resorts. The fact that the total arrivals in the colony increased from 18,074 in 1900 to 30,293 for the year ending the 31st December, 1902, is a criterion of the rapid growth of the overseas traffic to this country. The departures from the colony during this period increased from 16,243 to 22,301. The excess of arrivals over departures has increased from 1,831 in 1900 to 7,992 in 1902. The combined number of passengers inwards and outwards rose in the same period from 34,317 to 52,594. The figures of 1903 are expected to show a still greater increase. Of course, much of the increase in the passenger trade is due to general causes, but the work of the Department in making known the attractions of the colony and in facilitating travel throughout New Zealand has undoubtedly helped very appreciably to swell the past year's stream of foreign traffic, and when the institution is thoroughly well established the figures should reveal increases on a very much greater scale. One remarkable feature of the increased traffic is the large number of people now found visiting our tourist resorts during the winter months. i—H. 2.