Tourism is one of Australia's fastest growing industries, continually attracting strong local and foreign investment year after year. In the 2017 to 2018 financial year, the tourism sector recorded:
As local and foreign interest increases, Nash Advisory has been diligently tracking specific tourism deals in Australia. To learn more about the growth of this sector, unlock key valuable insights with our free tourism industry report.
There are four notable companies that operate within the Australian tourism industry. These companies have a combined enterprise value of around $2 billion, and collectively make over $1 billion in revenue each financial year.
Two of the most prominent are Experience Co. Limited and Sealink Travel Group, who have recently benefited from fortuitous market trends. Thanks to the strength of the local tourism market, these businesses have:
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By analysing market trends, we can take a deep dive into the reasons why tourism is profitable in Australia. Several sectors stand out as growth pillars for the greater tourism industry, and favourable trends suggest that these will continue to prosper through 2019 and beyond.
Inbound tourism is growing substantially in the Australian travel industry. Market trends suggest that younger generations want to visit areas with distinctive cultural and natural heritage. Countries that benefit from this trend are the United States, New Zealand, and Australia.
There are several reasons why the Australian tourism market is increasing in popularity:
Adventure, adrenaline, and experiential tourism companies are popular for acquisition. These businesses are typically geared towards consumers with greater budgets. They demand a higher price point, and have a wider range of product offerings.
Based on market data, Nash Advisory can make several predictions for 2019 and beyond:
Youth travel accounts for a quarter of all international travel worldwide, and is one of the most popular segments of the Australian tourism industry. International youth travel is becoming increasingly popular for several reasons:
The growth of youth travel reflects a wider cultural shift towards independence. Younger people are getting married later in life, and choosing to spend the money they would ordinarily save for a house and family on seeing the world. This shift has seen many other changing factors:
In Australia, youth tourism is a key pillar of the wider tourism industry, and is expected to increase by as much as $10 billion by 2020. The youth tourism sector is so profitable because customers arrive in Australia ready to spend money, and ready to work to earn to spend more.
Nash Advisory has all the tools you need to help you understand the state of the tourism industry. Unlock key insights with our free tourism industry report.
As one of Melbourne's premier boutique investment firms, Nash Advisory is committed to bringing you qualified insights into Australia's growing industries. Our team has extensive experience selling tourism businesses both locally and globally.
Get the insights on the tourism sector that no one tells you about. Get deeper into our insights in our comprehensive tourism industry report. You can download this report by visiting our dedicated tourism industry page.