3 ways you can profit from the tourism boom

Yesterday the Australian Bureau of Statistics released its tourism data for the month of April. Pleasingly the data revealed that the tourism boom has continued unabated, with year-on-year short-term arrivals increasing 7.7% to 727,600 during the month.

Three shares which I expect to benefit from this trend are listed below. Here’s why I think they could be worth taking a closer look at today:

Event Hospitality and Entertainment Ltd (ASX: EVT)

As well as its eponymous cinema chain, Event is also the company behind accommodation brands such as Rydges, QT, and Thredbo Alpine Village. As tourists flock to Australia in their droves, I expect demand for its rooms will increase strongly. This could allow the company to grow its earnings and dividend at a solid rate for the foreseeable future. At present Event’s shares provide a trailing fully franked 4% dividend.

Mantra Group Ltd (ASX: MTR)

Much like Event, I expect Mantra to profit from rising demand for hotel rooms. Especially as its diverse portfolio of accommodation brands cover a whole range of price points. While Airbnb has been labelled as a threat to accommodation providers like Mantra, I believe that both the high level of demand and positioning of its rooms in key tourist hotspots will help it overcome the global travel behemoth.

Sealink Travel Group Ltd (ASX: SLK)

Although its half-year results were a touch disappointing, with its shares down 17% year-to-date I feel SeaLink has become attractive again. As a provider of ferry services in locations that are popular with tourists such as Sydney Harbour and Kangaroo Island, I believe SeaLink Travel is positioned perfectly to profit from the tourism boom. Its shares are now changing hands at under 14x trailing earnings, which could make it worth a closer look in my opinion.

Finally, if you like Event and Mantra because they both pay great dividends, then you'll love this high-yielding dividend share as well.

Thanks to its dirt cheap price and strong growth prospects, I think it could be a great addition to most portfolios today.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Event Hospitality & Entertainment. 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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