H.—2.

panying them. The occasion was taken advantage of by the Government to invite all the Natives in the colony to assemble there to meet Their Boyal Highnesses. The result was most successful, and the vast assemblage of Natives carried out their entertaining and interesting programme in such a manner as to leave a proud and pleasing memory in the minds of all who were privileged to be present. That the Boyal party carried back to England pleasant thoughts of their visit to Botorua is shown by letters written to this Department by various members of Their Boyal Highnesses' suite. The Imperial Bepresentative Corps also visited Botorua. The Government baths were thrown open to them, and were greatly appreciated. The following table, supplied by the General Manager of Bailways, shows the number of passengers carried by railway to Botorua during the two years ending 31st March, 1901 and 1902, respectively.

Return of the Number of Passengers booked to Rotorua for Years ending 31st March, 1901, and 31st March, 1902, respectively, exclusive of Bookings from Flag-stations.

The above figures are exclusive of the passengers carried by the Boyal visit and the Imperial Bepresentative Corps special trains. There was also an increase of 30 per cent, in the number of visitors to Botorua via Wanganui Biver and Taupo, exclusive of Natives attending the Boyal visit demonstrations. Notwithstanding that there are four hotels and fifteen boardinghouses in Botorua and Whakarewarewa, the accommodation was not nearly sufficient to fulfil requirements during last Easter, and the Department had to issue warnings to intending visitors not to go there unless accommodation had been secured in advance. As it was, between two and three hundred persons arrived by rail late at night who could not get lodgings, and they had to sleep in railway-carriages, sheds, &c, and return to Auckland the next morning. An additional two hundred had perforce to put up with improvised accommodation, in some cases of the roughest description. If private enterprise does not soon provide the necessary accommodation, it will be incumbent on the Government to consider whether it shall not step in and do so, as has been done at Hanmer Hot Springs. On the representation of this Department the Postal Department has decided that a trial will be made by the Auckland Post-office of making up for despatch by the steamer for Sydney, at 5.30 p.m., a supplementary mail containing the correspondence for Australia received from Botorua by train due at Auckland at 5 p.m. on Mondays. Sanatorium. The Sanatorium has accommodation for twelve male and twelve female patients. Formerly four free beds for indigent persons were included, but owing to the number of demands for free beds, during the winter months, two additional beds were provided, making a total of six free beds. Even this number is quite inadequate to meet requirements, and, allowing the maximum residence for each free patient—namely, three months—all free beds have been booked in order of application up to February next. Also, numerous applications from paying patients for accommodation in the Sanatorium had to be refused during the summer months. When it becomes known that the services of an eminent balneologist have been secured, I am convinced that the applications for admission to the Sanatorium will be much larger than hitherto. This condition of affairs points to the urgent need of increased accommodation. In my opinion, it is desirable that a new accommodation building should be erected exclusively for paying patients on a site in the Sanatorium grounds near Lake Botorua. An excellent position is available. Such new Sanatorium should be furnished and conducted on a scale superior to the existing one, and the latter should be used for indigents. Provision in this connection has been deferred to enable the Department to get the benefit of Dr. Wohlmann's experience and special knowledge, but proposals will be placed before the Government as soon as possible after his arrival. During the past year the Sanatorium has been partly refurnished and otherwise improved, and made much more comfortable for the patients. The number of patients received into the institution during the year 1901-2 was 116, and the revenue collected for accommodation and doctor's out-patient fees was £1,294 Is., as against £1,088 6s. 6d. for the previous year, thus showing an increase of £205 14s. 6d. Bevenue on this account would have been much greater had more accommodation been available for patients. The Doctor's and Matron's duties having largely increased, it has been found necessary to augment the staff of the Sanatorium by the appointment of a clerk and a nurse. 2—H. 2.

9

Ordinary. Return. — Holiday Excursion. Special Excursion. Round Trip. [ Year ending Single. Total. First. ! Second. j . | First. Second. I First. I Second. First. Second. First. Seoond. 1901. March 31... 666 1902. March 31... 1,080 1,458 551 718 395 1,236 175 157 144 106 5,606 2,161 923 1,877 884 4,806 199 192 12,122 Grand total 1,746 3,619 1,474 2,595 1,279 6,042 175 157 343 298 17,728