Tourism scores high in thematic investments

Published on : Thursday, December 10, 2015

tourism spotsThematic investing is a common approach popularised by some fund managers in order to woo clients and guide investing decisions on the basis of macro or other economic themes.


One theme ASX-focused investors could consider is developing tourism over the years ahead as the weaker currency provides a big boost to the industry via more high-spending foreign visitors and Australians choosing to holiday at home.


Below are four destinations that may be worth considering for a strong 2016.


Sealink Travel Group Ltd (ASX: SLK) operates ferries across tourist hotspots in Queensland, South Australia and Sydney Harbour. The business also benefits from the super-low energy price environment as one of its main overheads is diesel to sail the ferries.


Amalgamated Holdings Limited (ASX: AHD) shares have climbed 43% in 2015 as investors warm to its cinema and hotel operations. The group operates the Rydges Hotels and Resorts alongside the more fashionable QT Hotels.


Sydney Airport Holdings Ltd (ASX: SYD) remains leveraged to the growth in international passenger numbers in particular, with Asian and particularly Chinese arrivals continuing to show double-digit growth rates.


Mantra Group Ltd (ASX: MTR) shares are up 62% in 2015 and as the largest listed hotel and accommodation operator on the ASX it is a big winner from increasing tourism. Over the long term it looks a prime beneficiary of the rise of Asia’s middle class, which is expected to grow from 500 million people today to 3.2 billion in 2030.


Where ever they are in the world tourists are generally seen as fair game for a bit of margin gouging by local businesses and entrepreneurial types, especially if currency movements provide the opportunity. Any of the last three businesses look reasonable opportunities to investigate further.

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