Over the past year or so investors have been inundated with ways to profit from the strengthening US dollar.
It's true that much of what you will read deals with ASX-listed companies with significant US-based earnings which will benefit from a positive exchange rate effect when those US dollars are converted back into Aussie dollars.
There is another way to profit!
The weakening domestic currency makes it more appealing for overseas visitors to head to our shores where their currency is now more valuable. With one US dollar currently buying A$1.37 – which is close to in line with historical norms – the prospect of increased numbers of cashed-up tourists heading Down Under could be a superb tailwind for a number of leading companies exposed to the travel, entertainment, leisure and tourism sector.
Here are four to consider:
- Mantra Group Ltd (ASX: MTR) – operates a string of hotels, resorts and serviced apartments across Australia. Its assets include luxury retreats and costal resorts and it is well placed to benefit from higher tourist numbers.
- Amalgamated Holdings Limited (ASX: AHD) – an entertainment and hospitality group with operations spanning movie theatres, hotels and the Thredbo Alpine Resort. Not only can a company such as Amalgamated benefit from higher inbound tourism, but the weak Aussie dollar can also encourage Australians to holiday at home rather than abroad.
- Village Roadshow Ltd (ASX: VRL) – while perhaps best known for its links to both film production and exhibition, Village Roadshow is also the owner and operator of Movie World, Sea World and Wet'n'Wild in Australia. These theme parks are a high priority destination for many travellers.
- Sydney Airport Holdings Ltd (ASX: SYD) – The city of Sydney is a key destination for inbound tourists. This makes Sydney Airport a key gateway for direct access to the city and it is also a key gateway for the movement of passengers into and out of Australia as well.
