H.—2,

Improvements to Hotel. —The work of building private bathrooms was completed before the commencement of the tourist season, and there was a steady demand for this class of accommodation. The main lounge was extended so that it opens out on to the front vestibule, and this has given more room and also improved the appearance of the Hotel. New carpets were provided for the lounge and main corridor downstairs. A commencement was made with the erection of the cottage for the Chief Guide, and this building will be ready for occupation during next year. Manager, Lake House, Waikaremoana. The Manager reports that there was a further increase in revenue. During the year a new hot-water system has been installed, while all bedrooms have been fitted with basins and hot and cold water. The old staff cottage has been renovated and turned into two comfortable dormitories to take the overflow from the hostel during rush periods. All tracks, buildings, and equipment have been kept in good order. The Caretaker, Morere Hot Springs. The Caretaker reports a large increase in the number of visitors to the Morere Hot Springs, with the result that the revenue showed a material increase. The new open-air swimming-pool was very popular with visitors, who expressed their appreciation of the facilities provided. The native bush in the reserve has improved a great deal during recent years owing to the steps taken by the Department to prevent damage to the undergrowth by deer and the eradication of noxious weeds. The building of the new open-air swimming-bath and the improvements made to the grounds have made the entrance to the reserve more picturesque, and further improvements are being proceeded with in respect of tracks, &c. The Manager, Milford Track and Hotel. The Manager reports that the Milford Track was well patronized during the season, an increase in the number of visitors being recorded, despite the setback to travelling in the South Island caused by the infantile paralysis epidemic. Milford Sound has had a busy season with shipping, the " Marama " having called on sixteen trips to and from Melbourne, disembarking and embarking passengers on each trip. Over eighty passengers landed direct from Australia, commencing their New Zealand tours from Milford Sound. Several tourists embarked here for Australia, having completed their tour of New Zealand. The " Maunganui " made two direct cruises from Sydney to Milford Sound, each trip being well patronized, The tourists were able to land at Milford for a few hours on each trip. The " Maunganui," also the " Wanganella," made one cruise from Wellington to Milford, both ships being fully booked. The weather during the past season has been very unsettled, snow having been experienced on the McKinnon Pass late in January. The rainfall has not been exceptionally heavy, only one party of tourists being inconvenienced by floods. The Milford Track was maintained in good order throughout the season. A suspension bridge has been constructed across the Clinton River at Glade House. The new road to the Homer Pass is progressing favourably, the advance party being within three miles of the Divide. As the lighthouse at St. Annes Point has now been built it should be in operation at an early date, andj)assenger-ships should be able to call at Milford on regular time-table. The Grave Talbot Pass has been crossed by thirty mountaineers during the past season. Mount Madeline was climbed from the Cleddau by Mr. Simm and party. A new pass was made by Guide Suter and Miss Byles, of Sydney, from the Hollyford to Harrison's Cove. Miss Gardiner and Guide Alec climbed Mount Hart, returning to the Eglinton via the Grave Talbot Pass. The Manager, The Chateau Tongariro. The Manager reports a record year in respect of the total revenue collected at this resort, which was practically double the total sum collected during the first year the Department had control of the hotel. New staff quarters were erected during the year, the main building reroofed and thoroughly renovated inside, this improvement being favourably commented upon by the guests. All waterpipes on the outside of the building were lagged and the balcony in front of the main building was reroofed. General maintenance-work on all buildings, plant, &c., has been attended to during the year, and the various services, such as the hydro-electric plant, water and drainage systems, &c., have been well maintained. Roads, Trades, &c. —All walking-tracks from the Chateau have received attention so far as it was possible owing to the adverse weather conditions throughout the summer. A new bridge was erected over the "Whakapapanui above the Chateau and on one of the favourite walking-tracks, the work being performed by members of the hotel staff, and owing to the excellent way in which the bridge was constructed it should last for many years. During the past year the main roads leading to the Chateau Tongariro have been used a greatdeal by heavily laden timber lorries, and this fact, coupled with the wet summer experienced, has made it difficult for those responsible to keep the roads in good order and condition.

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