Data released by the Australian Bureau of Statistics last month revealed that the inbound tourism boom continues to gather pace.
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.
Three shares which I believe will benefit from this trend are listed below:
Event Hospitality and Entertainment Ltd (ASX: EVT)
With brands including Event Cinema, Rydges, and Thredbo Alpine Village, I believe Event Hospitality and Entertainment is positioned perfectly to profit from the tourism boom. Although its first-half performance has been less than impressive, there are a number of underlying reasons for this. A weaker film line-up compared to the previous year has hit its cinema business, and refurbishments at a number of its hotels resulted in a drop in profit for its hotel businesses. I believe these refurbishments will make its hotels more attractive to tourists, potentially allowing higher room rates. Overall, I think next year will be a return to form for the company.
Mantra Group Ltd (ASX: MTR)
Like Event, Mantra has had a reasonably disappointing year despite the tourism boom. Weakness in the company's CBD portfolio has weighed heavily on its results and offset the strong performance of its Resorts business. But I feel confident that management will rectify the situation and return the segment to growth again next year. As demand for rooms increase due to the tourism boom, I expect the company will report an increase in occupancy levels and average room rates.
Qantas Airways Limited (ASX: QAN)
The main catalyst for the tourism boom has been the increasing number of Chinese short-term arrivals. In 1976 there were just 500 Chinese visitors to Australia. How things have changed! Approximately 1.2 million Chinese visitors came to Australia in 2016, up around 17% year-on-year. With Qantas recently launching more direct flights between the two nations, I believe the airline is positioning itself well to profit from this trend. Furthermore, I believe demand for its domestic flights could increase as international tourists visit different areas of the country. If oil prices stay low, I feel Qantas could prove to be a great investment.
