On Friday the Australian Bureau of Statistics released its tourism data for the month of January. Once again, the data shows that inbound tourism remains strong, particularly from China, New Zealand, and Japan.
According to the release, Australia welcomed 781,400 short term visitors to its shores during January, which was a month on month increase of 0.1% and a 3.2% lift on the prior corresponding period.
China continues to be the biggest contributor to tourism, with 124,100 short term visitors entering Australia. This is a 6.4% increase on the prior corresponding period.
Supporting this growth was a 2.1% increase in visitors from New Zealand, a 1.8% lift in tourism from the United States, and a 9.2% jump in visitors from Japan.
Visitor numbers from the UK fell 3.5% on the prior corresponding period, possibly due to the impact of Brexit on consumer confidence.
Australian outbound tourism has also remained strong. A total of 945,700 residents returned to our shores from overseas trips during the month. This was a month on month increase of 0.3% and a 6.1% lift on the prior corresponding period.
So, with tourism remaining strong, should you buy these shares?
Crown Resorts Ltd (ASX: CWN)
As a casino and resort operator the increase in tourism is certainly a positive for Crown. However, its performance so far in FY 2019 has been a touch underwhelming. In light of this, I would hold off an investment for the time being and wait for trading conditions to improve.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Sydney Airport is the main gateway to Australia and a company I believe is likely to be a big winner from the inbound and outbound tourism boom. Because of this, I think the airport operator is well-positioned to deliver solid profit and dividend growth over the next decade. This could make it a great buy and hold investment option, especially for income investors.
Webjet Limited (ASX: WEB)
My favourite option in the travel and tourism sector is this online travel agent. I believe it is well-positioned to profit from the tourism boom in Australia and other regions due to the growing popularity of its numerous brands and the shift to online booking. Furthermore, with its shares changing hands at 23x estimated full year earnings, I think they are trading at a very attractive level.
