Australia has already been a major beneficiary of the growth of the Chinese middle class with its increasing demands for quality foods and wine from the likes of A2 Milk Company Ltd. (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE).
With new found wealth, and the ability to travel overseas, we will also benefit from an expected doubling of visitors from one of the world's fastest growing economies in the next ten years.
ASX-listed companies that should benefit from this boom in tourism include Sydney Airport Holdings Pty Ltd (ASX: SYD), which is the major gateway for tourists entering the country.
Operators who provide services to travellers to explore Australia should also benefit.
Apollo Tourism and Leisure Ltd (ASX: ATL) is my top choice here. Apollo is the largest rental provider of recreational motorhomes in Australia, and also has operations in New Zealand and North America. Not only does it rent motorhomes, but it manufactures and sells them under the brand names of Winnebago and Talvor in Australia and New Zealand.
It started as a family run business and has grown rapidly through acquisitions. In March it added the major UK operator Camperco to its global stable which provides the opportunity to further expand in Europe.
Although far from being a tech company, Apollo also has a 25% stake in Camplify the fast-growing online business which has been born out of the emergence of the sharing economy, linking caravan owners to caravan renters for short-term rentals.
Chinese tourists have initially been happy to go on guided coach tours when coming to Australia, but that is now changing rapidly as independent travel is seen to be more rewarding. Figures from Tourism Research Australia show that there was 112% growth in camping and caravan visitor nights by Chinese tourists from 2016 to 2017.
Sitting on an undemanding PE of 17, and a dividend yield of just under 2%, Apollo is a tourism stock that offers an opportunity to Australian investors to ride the tourism wave.
