The latest data out of the Australian Bureau of Statistics reveals that the tourism boom continued during the month of February.
According to its Overseas Arrivals and Departures data, Australia welcomed 781,800 short term visitors to its shores during the month. This was a month on month increase of 0.1% and a 3% lift on the prior corresponding period.
Tourism from China was solid during the month, with 115,600 visitors arriving in Australia. This was a 2% increase on the prior corresponding period.
But the biggest driver of growth was tourism from New Zealand, Japan, and India. Tourism from these countries increased 5.7%, 5.7%, and 10.6%, respectively.
This offset weakness from the United Kingdom, which appears to have been impacted by Brexit. Tourism from the UK fell 2.9% on the prior corresponding period to 61,300 visitors.
Outbound tourism was strong during the month as well. 931,200 residents returned from short term overseas trips during the month, up 3.5% on the prior corresponding period.
How can you profit from this?
There are a number of shares that I believe are likely to benefit greatly from the tourism boom. Three that I would buy are as follows:
Qantas Airways Limited (ASX: QAN)
I think the shares of Australia's flag carrier airline would be a good option at the current level, just as long as oil prices don't get out of control. I think the tourism boom, its effective capacity management, and the rationalisation of competitive markets, both domestic and international, have positioned Qantas to deliver a strong full year result.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
As the main gateway into and out of Australia, I think the country's busiest airport would be a great option for investors looking to gain exposure to the tourism boom. Another bonus is that its shares provide a generous trailing 5.1% dividend yield at present.
Webjet Limited (ASX: WEB).
It isn't just tourism in Australia that has been growing. Global tourism has been increasing strongly over the last few years and looks set to continue doing so for some time to come. Combined with the growing popularity of its brands and the shift to online booking, I think Webjet is likely to benefit greatly from the trend.
