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(b) The Domestic Field The position generally in regard to internal tourist traffic was very satisfactory during the year. The financial results of booking activities again show an increase, and this is attributable very largely to the volume of business transacted for ex-members of the Services, accompanied by near relatives, who took advantage of the facilities provided by the Bureaux and Booking-agencies. There are, however, certain adverse features now apparent; all booking-offices report serious difficulties in connection with hotel accommodation and with reservations on all transport services. The easing of certain transport restrictions has. had the effect of straining all travel and accommodation facilities to the utmost capacity, and it is clear that in the national sense New Zealand had, during the year under review, insufficient of these facilities to serve the requirements of the travelling public. As conditions gradually improve in the future, the necessity for increased and better accommodation and the amplification of existing transport services becomes more and more a matter of pressing urgeney. Although from the revenue standpoint the results achieved were gratifying, the fact must not be lost sight of that recent experience serves only to emphasize these needs. All practical steps should therefore be taken to ensure that appropriate services are provided in the near future for domestic travellers and for the tourist visitors who will come to this country from overseas. (>c) The Tourist Industry It is regretted that little progress has so far been made in certain directions that are beyond the purview of the Department, but which are within its active interest. There are certain services, such as hotels and guest houses, whose ability to cope with an accelerated tourist traffic is at present doubtful. It is, of course, apparent that accommodation interests are fully cognizant of the fact and that they are now taking such steps as are possible within the limits of their present capacity to prepare for the handling of more tourists. The limiting and restricting factors associated with rebuilding, extensions and improvements to premises, and the increasing of staff (especially hotel staff) are problems too well known to require emphasis here. REVIEW OF THE YEAR'S WORK I. ADVERTISING (os) Film and Advertising Studios - Photographs.—Photography is an important factor in the dissemination of information locally and abroad, and during the year some '112,000 photographs of all sizes were produced. Of these, 10 per cent, represented war subjects. Since the return of members of the Services from overseas, the demands for war photographs have decreased, and the opportunity has been taken to increase the despatch to countries beyond New Zealand of photographic subjects dealing with the scenery, industries, natural resources, and the people. Two photographers are employed fully in obtaining up-to-date subjects to supplement the existing collection. During the year the Studios have taken over the work of production of photographic material for Air Department Public Relations. Film Strips.—This work continues to expand, and a considerable number of strips has been produced for educational and health publicity purposes. Scenic strips featuring the North and South Islands have been prepared and distributed overseas.

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