This morning the Australian Bureau of Statistics released its inbound tourism data for the month of March.
According to the release, Australia welcomed 761,800 short term visitors onto its shores during the month, which was a 5.3% increase on the prior corresponding period.
The biggest drivers of this growth was tourism from China and the United States. Inbound visitors from these two nations rose 6.8% and 5.5% respectively on the prior corresponding period.
I believe this trend can continue for some time to come, meaning Australian companies with exposure to the tourism sector could benefit greatly over the coming years.
As a result, I think these three shares could be worth a look today:
Crown Resorts Ltd (ASX: CWN)
Due to Crown's portfolio of hotels and casinos in prime tourist hotspots, I think the company is well positioned to benefit from the tourism boom. As more and more tourists arrive in Australia, I expect demand for hotel rooms will grow strongly. This could lead to Crown experiencing the perfect combination of higher room rates and occupancy levels.
Experience Co Ltd (ASX: EXP)
This adventure tourism company recently downgraded its full-year revenue and earnings guidance due to the impact of unfavourable weather conditions. As this is arguably a once in a generation event, I think the sizeable selloff that has occurred has created a buying opportunity. Especially given how the tourism boom is likely to result in increased demand for its services.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
As the main gateway into Australia I think Sydney Airport will be a big winner from the tourism boom. As tourists flock to the country, I expect the company will not only see a rise in passengers through its gates, but also demand for its parking and retail facilities. This should put it in a position to grow its earnings and dividend at an above-average rate, potentially offsetting any pressures from rising bond yields in the United States.
