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8 ways to profit from the tourism boom on the ASX

One investment thematic that I think investors should consider gaining exposure to is the tourism boom.

This week the Australian Bureau of Statistic released its latest tourism data which shows that the boom continued in October.

During the month Australia welcomed 782,600 short term visitors to its shores, up 0.3% month on month and 4.1% on the prior corresponding period.

This solid influx of visitors is likely to mean growing demand for accommodation, potentially putting the likes of Crown Resorts Ltd (ASX: CWN), Star Entertainment Group Ltd (ASX: SGR), and SKYCITY Entertainment Group Limited (ASX: SKC) in a position to benefit from higher room rates and improved occupancy rates.

But it isn’t just inbound tourism that is on the rise. More and more Australians are taking trips abroad, which could be great news for airlines such as Qantas Airways Limited (ASX: QAN) and travel agents including Flight Centre Travel Group Ltd (ASX: FLT), Helloworld Travel Ltd (ASX: HLO), and Webjet Limited (ASX: WEB).

In the month of October a total of 933,600 residents returned from short term trips. This was a 0.2% lift on the previous month and a sizeable 5.6% increase on the prior corresponding period.

Which shares should you buy?

While all the shares mentioned above are likely to benefit from the tourism boom, there are a couple that I think are particularly attractive.

My first pick is online travel agent Webjet. After a sharp pull back in its share price over the last few months, I think Webjet is attractively priced given its current growth profile.

Furthermore, in addition to benefiting from the tailwinds of the tourism boom, the shift to online booking continues and looks likely to support its growth over the coming years.

My next pick is Sydney Airport Holdings Pty Ltd (ASX: SYD). As the main gateway into and out of Australia, I feel it is well-placed to benefit from the growing number of travellers passing through its terminals. It also provides investors with a decent dividend yield as well.

Looking for even more investment options? Then don't miss out on these top shares that have been tipped as potential market beaters.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited, Flight Centre Travel Group Limited, and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. and Webjet Ltd. 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.

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