MENU

2 stocks to benefit from the tourism tailwind

There are a lot of ideas about tailwinds out there that will supposedly boost a business. Few of these tailwinds are actually genuine opportunities, or at least not long-term ones.

I think one of the best tailwind stories at the moment is the tourism tailwind. There are two factors that are boosting tourism in my opinion.

The first factor is that the western world’s ageing population is resulting in increasing amounts of people hitting retirement age. One of the main things that retired people like to do, if they can afford it, is to travel and see the world.

The other factor is that there is huge Asian middle class that has worked hard for the past couple of decades and want to use their wealth to explore the world and see some of the best destinations in the world.

Australia and New Zealand are two of the most popular destinations for tourists to visit in the world. It helps that both countries are relatively close for Asian tourists to visit.

Here are two shares that should benefit significantly over the coming years:

Crown Resorts Ltd (ASX: CWN)

Crown is Australia’s largest resort and entertainment provider. It has two large casino complexes in Melbourne and Perth which are profit-making machines.

The business has been under pressure in recent times with troubles in China and it has sold a number of assets recently to fund its big Crown Sydney project. The Barangaroo casino has the potential to add a large chunk of earnings to Crown’s bottom line once it’s finished.

Crown also plans on building a new high-quality hotel in Melbourne to add to the already-huge complex.

Crown is trading at 25x FY18’s estimated earnings.

Auckland International Airport Ltd (ASX: AIA)

Auckland Airport is the main point of entry into New Zealand and it’s experiencing a big increase of international passengers, particularly from Asia.

The country’s magnificent scenery and pleasant population are big draws for visitors. That’s why many globe-trotting people are buying a property in New Zealand.

If Auckland Airport can increase its secondary revenue like retail at the airport then the business can expect continued strong growth for years to come.

It’s currently trading at 30x FY18’s estimated earnings.

Foolish takeaway

I believe both businesses have exciting futures, which is why they’re near the top of my watchlist. I wish I had bought Crown when it was trading near $11 but both businesses could make decent long-term buys at the current prices.

Crown and Auckland Airport aren’t the only shares growing profit strongly, these top growth shares are also exciting prospects.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!