It is a Wonder Art Creative Needlecrafts kit, Number 4895 "Santa Claus". I found the kit later in another online auction. It was interesting to see "RYA" on the package. Rya rugs are traditional Scandinavian rugs with long pile, think: shag.
I didn't buy the Santa Claus kit, but it was interesting to find out more about it. If there was a book on these late 20th century latch hook rug kits, I'd buy it.