Live preview mode. Wire is not yet published.

A new angle on the tourism theme

Jeremy Bendeich, Chief Investment Officer and Portfolio Manager of Avoca says: "We see good potential for inbound tourism plays as the Australian dollar falls. However, finding quality plays at reasonable prices is difficult. Much of Australia’s tourism infrastructure is cum-capex. Also, most of Australia’s unique and protected tourism assets – e.g. Taronga Zoo, BridgeClimb - are not listed. Without uniqueness or legislative protection, ultimately competition will erode returns as barriers are generally immaterial in this space. On this point, Wanda Group’s proposed $1bn theme park on the Gold Coast is certainly not going to benefit the incumbent theme park operators (AAD, VRL). They will be forced to compete either on price or quality (increased capex), both of which are bad for returns. In our latest monthly update, we examine why we’re in the unusual position of being drawn to the domestic airline market." (VIEW LINK)


3 stocks mentioned

Bennelong Funds Management develops and distributes active funds locally and around the globe, offering high-grade investment solutions to institutions, financial advisers and direct investors.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment