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APPENDICES. APPENDIX I. SEVENTH ANNUAL HEPORT OF THE GENERAL MANAGER OF TOURIST AND HEALTH RESORTS. Department of Tourist and Health Resorts, Wellington, Sir, — 11th September, 1908. 1 have the honour to submit herewith the departmental report for the year ending the 31st March, 1908. I have, &c, T. E. Donne, General Manager. Hon. James McGowan, Minister in Charge of Tourist and Health Resorts Department. 1 have to report that the number of visitors recorded from oversea during the past year was 8,602, as compared with 9,654 for 1906-7, and 7,142 for 1905-6, showing a decrease of 1,082 on the number for 1906-7, but an increase of 1,460 over those for 1905-6. The value of the traffic, estimated on the same basis as in previous years, was, for the past year, £430,000; for 1906, 6484,000; and for 1905, £357,000. It could hardly be expected that the increase of 2,542 for 1906-7 over that shown for 1905-6 would have been maintained during the .past year, the increase in 1906-7 being largely due to the special attractions provided by the International Exhibition held at Christchurch, which caused a very large increase in the number of visitors from Australia; and, therefore, the figures for 1906-7 can hardly be taken as a means of comparison for the purpose of estimating the growth of the oversea traffic. To gain a reliable estimate of the increase it is necessary to take the figures of 1905-6. As stated above, the oversea traffic for the past year as compared with that year shows an increase of 1,460, and an increase in value of £73,000, giving an increase per year of £36,500, which must be regarded as very satisfactory. I append a table showing the figures for the last four years, indicating the countries from which visitors were drawn, and the estimated value of the traffic. From this it will be seen that the chief falling-off during the last year, and at the same time the chief increase over 1905-6, is in the number of visitors from Australia. A small increase has been maintained in visitors from the United Kingdom, but there has been a considerable falling-off in those from the United States and Canada due, I have no doubt, to the cessation of the direct steam service between San Francisco and New Zealand: —

Dihect Revenue. The direct receipts of the Department for the year amounted to £20, ISs. 4d., as compared with £ 15,203 ss. 4d. for the previous year, showing an increase of £2,285 13s. Included in this increase is the sum of £503 3s. lid. from Rotorua Acclimatisation District, and £340 ISs. 4d. from Te Puis Hot Springs, these representing sources of revenue which were not previously under control of the Department. It has been the practice in the past to credit the greater part of the direct receipts of the Department to the departmental vote on the Consolidated Fund, and the amount so credited during the year under review amounted to £15,383. The various resorts having now been brought under the provision of " The Tourist Resorts Control Act, 1906," all departmental receipts will be credited direct to the Consolidated Fund in accordance with that Act ; the total vote of the Department will therefore be increased this year by the amount of these oredits without in any way increasing the expending-power of the Department. The following

1904-5. 1905-6. 1906-7. 1907-8. Australia United Kingdom United States and Canada European Continent ... Africa India Other countries ■ 2,892 2,025 563 146 113 86 167 3,463 2,376 652 175 137 92 247 5,612 4,958 2,394 ' 2,442 763 ' 426 260 242 196 166 85 140 374 228 9,684 8,602 5,992 5,992 7,142 Estimated expenditure by visitors ... £2 £299,000 299,000 £484,000 | £430,100 £357,000