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Here are 4 ways to profit from the tourism boom

On Friday the Australian Bureau of Statistics released its latest short-term visitor arrivals data for the month of March.

That data revealed that Australia’s tourism boom is in full swing, with short-term arrivals rising 6.5% year-on-year to 712,800.

Once again China was the driving force behind the increase. Short-term arrivals from the country increased 7.9% from March 2016 to 106,200.

Considering the rapid increase of China’s middle class and its love of traveling, I expect this level of growth can be sustained for some time to come.

I believe this could provide strong tailwinds for the following shares:

Mantra Group Ltd (ASX: MTR)

With over 20,000 rooms under management across key tourist hotspots, I believe this accommodation provider is a great way to gain exposure to the tourism boom. I expect demand for its rooms to increase over the next few years, allowing it to grow earnings at an above-average rate.

Star Entertainment Group Ltd (ASX: SGR)

The key catalyst to the growth in the arrivals has been Chinese tourism. Considering their reputation for enjoying a spot of gambling, I believe this casino and entertainment company is positioned perfectly to profit.

Sealink Travel Group Ltd (ASX: SLK)

As a provider of ferry services in key tourist hotspots such as Sydney Harbour and Kangaroo Island, I believe SeaLink Travel is another great option for investors looking to profit from the tourism boom.

Sydney Airport Holdings Ltd (ASX: SYD)

As the main gateway into Australia I believe Sydney Airport stands to benefit from the increasing number of arrivals into the country. I believe this will allow Sydney Airport to grow its earnings at a solid and predictable rate for some time to come.

Finally, here are three other quality shares which I think could be great buy and hold investment options.

Top 3 ASX Blue Chips To Buy In 2017

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Sydney Airport Holdings Limited. 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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