The Motley Fool

Should you buy Crown Resorts, Webjet Limited, & these ASX travel and tourism shares?

Earlier this week the Australian Bureau of Statistics released its tourism data for the month of March.

That update revealed that short term visitor arrivals came in at 777,900 during the month, which was flat month-on-month and up 2.2% on the prior corresponding period.

Short term resident returns were 926,500. This was a decline of 0.3% month on month but an increase of 2% on the prior corresponding period.

This data appears to show that both inbound and outbound tourism growth is slowing in Australia, which could be bad news for the likes of Crown Resorts Ltd (ASX: CWN) and Star Entertainment Group Ltd (ASX: SGR).

Especially given that a slowdown in tourism from China appears to have been partly responsible for the weaker numbers.

Inbound tourism from China fell 0.1% month-on-month and increased only 0.8% on the prior corresponding period.

But whilst the tourism boom could be nearing its end, I wouldn’t let that put you off all travel and tourism shares. Two which I would buy are listed below:

Helloworld Travel Ltd (ASX: HLO)

I think that this integrated travel company could be a good investment due to its attractive valuation and positive growth prospects. Due to being caught up in in a political scandal earlier this year, Helloworld’s shares have fallen heavily and now trade at just 15x trailing earnings. I think this makes them dirt cheap considering management recently reaffirmed its full year EBITDA guidance of $76 million to $80 million. This will be an increase of 20.5% to 27% on FY 2018’s result.

Webjet Limited (ASX: WEB)

Another top travel share to consider buying is this leading online travel agent. Due to the growing popularity of its numerous booking brands, the continued shift to online booking, its fast-growing WebBeds business, and recent acquisitions, I believe Webjet is well positioned to continue growing its earnings at a very strong rate for the foreseeable future.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Helloworld Limited 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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