It’s no secret that New Zealand is a real gem in the Pacific Ocean’s box of treasures and tourism to the country has been on an upward trend.
These ASX listed companies are well positioned to take advantage of New Zealand’s tourism boom and the numbers are confirming it.
Auckland International Airport Limited (ASX: AIA)
AIA just provided a March 2018 monthly traffic update which shows that international passengers increased by 8.9% to over 900,000 in March 2018 alone. While Easter coming earlier this year is a contributing factor, there has been strong growth in visitors particularly from Asia and the Middle East.
An announcement this morning also confirmed that Auckland airport is investing heavily into key infrastructure projects aimed at international travelers.
Air New Zealand Limited (ASX: AIZ)
AIZ also announced that March 2018 passengers carried were up 8.6% compared to March 2017 and overall there was a 6% increase in the March year to date passengers carried compared to last year.
To accommodate demand from North America, AIZ will launch a new three flights per week service between Auckland and Chicago starting in November this year which is expected to provide 85,000 seats.
Virgin Australia Holdings Ltd (ASX: VAH)
Following the decision to end the alliance with Air New Zealand, Virgin Australia is increasing its frequency of flights from Australia to New Zealand.
Many visitors to New Zealand are likely to visit Australia as well which will work to Qantas and Sydney airport’s advantage. As the top domestic carrier and the busiest Australian airport, they are well positioned to do just that.
Spark New Zealand Ltd (ASX: SPK)
With roaming charges still quite high, Spark’s sub-brands Big Pipe, Blue Sky, Slingshot and Skinny mobile are quite popular with cost sensitive travelers and backpackers in New Zealand. The company also has a lucrative 6.9% dividend yield.
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The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings 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.