Here are 3 ways to profit from the tourism boom

The Mantra Group Ltd (ASX:MTR) share price is one of three which I think could climb higher thanks to the tourism boom. Here's why…

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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.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Event Hospitality & Entertainment. 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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