Tourism and leisure shaping as Australia's next boom sector

28th April 2015
By Matthew Smith, AFR

As one boom ends, investors in the know are priming themselves to pick up on what's being framed as the next great boom, likely to be fuelled by tourism and cashed-up overseas visitors seeking leisure.

Funds managers lamenting the end of the mining super-cycle and seeking new growth areas are targeting a small group of ASX-listed stocks likely to benefit from a lower $A dollar and an Australian government keen to court inbound travellers.

"It's the flip side of the mining boom," says Lee Mickelburough, a partner and the head of Perennial Growth Management.

"During the mining boom, people had more money in their pockets and they travelled overseas. International tourists didn't want to come here because it was too far and too expensive."

Now there are more tourists coming from overseas – particularly from China – and "staycations", among Australians who might be fearful about the domestic economy, are becoming more popular, Mickelburough says.

Travelling domestically will become more popular for Australians particularly as the currency makes international travel more expensive, he says.

Mickelburough's top investment pick for travel and leisure investment is Mantra, the accommodation group that operates Peppers Mantra and BreakFree.

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