This morning the Australian Bureau of Statistics released its latest tourism figures. Yet again the data was extremely positive and shows that Australia's tourism boom is still in full swing.
According to the release there were a total of 713,500 short-term visitor arrivals in February. This equates to a 7.7% increase compared to the prior corresponding period.
There are a number of companies which I expect to profit greatly from the tourism boom. Here are two of my favourites:
Event Hospitality and Entertainment Ltd (ASX: EVT)
Thanks to brands including Event Cinema, Rydges, and Thredbo Alpine Village, I believe Event Hospitality and Entertainment is in a great position to profit from the tourism boom. As more and more tourists flock to Australia, I expect demand for accommodation to grow strongly. I believe this will result in the company enjoying both higher occupancy levels and higher average room rates. Overall I feel this puts the company in a strong position to grow its earnings and dividend at a solid rate over the next decade. Investors might want to consider an investment in rivals Mantra Group Ltd (ASX: MTR) and Crown Resorts Ltd (ASX: CWN) also.
Sydney Airport Holdings Ltd (ASX: SYD)
As the main gateway into Australia I believe Sydney Airport stands to benefit more than most from the increasing number of international arrivals into the country. Last year the airport welcomed 41.9 million passengers through its gates, up 5.6% from a year earlier. International passengers were the main driver of this growth, increasing 8.9% year-on-year. So far in 2017 the number of international arrivals has continued to grow strongly. As of the end of February, international arrivals had grown 7.2% year-to-date compared to the prior corresponding period. I expect this trend to continue for several years, which should allow Sydney Airport to grow its earnings at a solid and predictable rate for some time to come.
