I like to invest in shares that have a noticeable tailwind behind them. Businesses that serve Australia's ageing population is an obvious one, but tourism is also an exciting opportunity in my opinion.
I think it's a growth idea because the number of international passengers arriving into Australasia is increasing, the national population is increasing and more people are reaching retirement age.
These two shares are high on my watchlist:
Auckland International Airport Ltd (ASX: AIA)
I talked about Australia in my introduction but New Zealand is also experiencing solid growth in tourism too. Most people flying to New Zealand will first fly into Auckland, even if they are going on to another destination.
That's why I believe Auckland Airport is a good investment idea because more passengers mean more passenger fees, more retail fees, more car park fees and so on.
In its latest monthly update for February 2018 the company revealed that total international passengers grew by 6.3% and total passengers grew by 7.1% compared to February 2017.
I think it's the best infrastructure stock trading on the ASX, it's currently trading at 28x FY19's estimated earnings.
Crown is the largest casino and entertainment complex operator in Australia. It runs Crown Melbourne and Crown Perth, which are both large profit machines for the company.
In its recent half-year report Crown revealed that its 'normalised' earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 11.2%, which shows the day-to-day running of Crown is going quite well.
The main reason I like Crown is the future opening of Crown Sydney, a new casino & hotel complex which is being built in Australia's largest city. This should be a big boost to future earnings when it's completed in a few years' time. The new hotel in Melbourne should also be a boost for Crown's earnings.
Crown is currently trading at 20x FY19's estimated earnings.
Foolish takeaway
I don't own shares of either business yet, there has always been something better to buy at the time. But, I do believe both will beat the ASX index's returns over the next decade and if either business shows price weakness I'll be very interested.
