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Profit from the tourism boom with these ASX shares

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.

Finally, although these quality shares may not necessarily be winners from the tourism boom, I believe they have exceptional growth prospects that make them strong buys today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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