Yesterday the Australian Bureau of Statistics released its latest tourism figures which revealed that the tourism boom is still in full swing.
For the month of September inbound visitor numbers grew a stunning 11.3% over the prior corresponding period, as Australia welcomed 702,500 short-term visitors.
A key driver of this growth was the 22% increase in visitors from the United States. Pleasingly tourism from China once again remained strong and increased 7.8% to 99,800 visitors over the period.
With the tourism boom showing no sign of slowing, the following three shares appear to be positioned for growth over the next few years.
Mantra Group Ltd (ASX: MTR)
As one of Australia’s leading accommodation providers I expect the tourism boom will create strong demand for the 20,000 rooms it has under management. One thing in particular that I like about Mantra Group is that through its BreakFree, Mantra, and Peppers brands, the company is uniquely positioned to cater to the budget, mid-range, and luxury market.
Skydive The Beach Group Ltd (ASX: SKB)
Not all tourists are content with spending their days tanning on the beach. Some come to Australia looking for an adventure and Skydive The Beach is happy to oblige. Amongst its many offerings the company provides skydiving, white water rafting, and Great Barrier Reef cruises. In FY 2016 the company delivered a 123% increase in EBITDA to $13.5 million. Although no guidance has been given for the year ahead, management expects the strong business momentum to continue in FY 2017.
Sealink Travel Group Ltd (ASX: SLK)
SeaLink Travel provides ferry services in key tourist hotspots such as Sydney Harbour and Kangaroo Island. On the back of the tourism boom the company reported a 58.8% increase in full year revenue to $176.7 million in FY 2016. Moving forward I expect the tailwinds of the tourism boom and the company’s acquisition of Captain Cook Cruises Western Australia to be a driver of growth in FY 2017.
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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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