In its most recent update the Australian Bureau of Statistics revealed that inbound tourism has grown 6.8% year-on-year.
The main driver of this growth has been a sizeable increase in the number of visitors from the China mainland. Chinese tourism increased 20% on the prior corresponding period in October.
The good news here is that Australia still only has a very small share of the Chinese tourism market.
In light of this, I believe that total inbound tourism numbers can continue to grow at this strong rate for some time to come.
Which could make an investment in one of these tourism shares a great idea for investors:
Casino and accommodation operators.
Considering their love of gambling and luxury retail shopping, I believe casino operators and accommodation providers such as Crown Resorts Ltd (ASX: CWN) and Star Entertainment Group Ltd (ASX: SGR) could be big winners from the Chinese tourism boom. While neither of these shares come cheap, I do think they could be worthy of paying a premium to own.
Tour operators and experiences.
There’s more to a holiday than a gamble and a wander around the shops. Which is why ferry company Sealink Travel Group Ltd (ASX: SLK) could be worth a look this year. As could adventure company Experience Co Ltd (ASX: EXP). Formerly known as SkyDive The Beach, Experience Co. went through a rebranding last year after a series of acquisitions diversified its business far beyond just skydiving.
Theme park operators.
Australian theme parks have struggled greatly over the last 12 months following the tragedy at Dreamworld. However, there have been signs of improvement and increasing tourism numbers will certainly be a big help moving forward. While I don’t think the struggling Village Roadshow Ltd (ASX: VRL) is worthy of an investment just yet, Ardent Leisure Group (ASX: AAD) could be worthy of a closer look due largely to its US Main Event business.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. 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.