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.
