The Motley Fool

These are 2 of my favourite tourism shares

I like the idea of investing in shares that have a tailwind behind them. It should hopefully mean a rising number of customers, more revenue and more profit.

‘Tourists’ is a vague term. It could be referring to millennials looking for more experiences (over material possessions). It could mean the growing western retiree population entering their golden years and wanting to have fun. It could mean the rising Asian middle class that wants to spend some of their hard-earned money on exploring countries. Perhaps all count as tourists?

Here are two of my favourite shares to take advantage of the growing tourism tailwind:

Auckland International Airport Ltd (ASX: AIA)

This is the company that runs Auckland Airport, the largest airport in New Zealand.

Ever since Lord of the Rings was released, New Zealand has received even more international attention for its beautiful landscapes and friendly population. This is really benefiting the country’s biggest airport.

Every month the airport company tells the market its passenger numbers. In the May 2018 update it revealed that total passengers were up 4% on May 2017 and year to date passengers were up by 6.2%.

I think this is a better choice compared to Sydney Airport Holdings Ltd (ASX: SYD) because Auckland is the clear first point of entry for most international flights into New Zealand, whereas several Australian cities share the workload.

It’s currently trading at 30x FY19’s estimated earnings.

Crown Resorts Ltd (ASX: CWN)

Crown is Australia’s largest casino and entertainment provider with its large complexes in Melbourne and Perth.

It seems as though the company has put its Chinese VIP gaming problems behind. It has also divested most of its global operations, making it a much simpler investment for shareholders to get to grips with.

The main avenue for growth, other than growing the number of patrons at its existing locations, is Crown Sydney. Having a luxurious Crown complex in Australia’s glitziest city could be an excellent driver for long-term growth.

It’s currently trading at 22x FY19’s estimated earnings.

Foolish takeaway

Crown seems like it’s trading at good long-term value considering how much extra earnings Crown Sydney will add. Auckland Airport is the more attractive business to me, however rising interest rates could significantly hurt its valuation over the next couple of years.

For now, both shares will remain on my watchlist and I’d rather buy shares of one of these top businesses.

3 Top Shares To Buy In July

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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.