The Australian tourism sector is an important investment opportunity for investors looking to diversify their portfolios. Specialised funds like the Defender Tourism provide exposure to the sector without huge amounts of capital investment. The sector’s growth potential and stable investment climate as well as diverse opportunities make it a rare jewel for investors looking to diversify away from stocks but rather gain industry-wide exposure.
1. Strong Recovery in Tourism Post-Pandemic
The Australian tourism industry is recovering from the disruptions linked to the
COVID-19 pandemic. Tourism Research Australia forecasts international visitor expenditure to exceed pre-pandemic levels in 2024 and reach about AUD 50.7 billion by 2028. This growth will equally be supported by the Australian government’s strategic plan called THRIVE. It aims to boost visitor expenditure sustainably from AUD 166 billion in 2023 to AUD 230 billion by 2030.
Safe and Diverse Tourism in Australia
In addition to having a reputation for being safe and politically stable, Australia benefits from a broad variety of attractions, including its natural wonders and cultural experiences. Investing in one asset alone requires huge amounts of capital, which reinforces the rationale of the Defender Tourism fund that specifically targets established accommodation businesses, hotels, and motels along Australia’s East Coast.
The East Coast area is also known for its strong tourism performance. Since the fund was started, it has strategically acquired eight assets in key regions like New South Wales and Victoria, which allows it to leverage growth in high-demand areas.
2. Infrastructure Investment And Government Support
The Australian government is actively supporting the tourism sector via a range of initiatives aimed at fostering growth and sustainability. In the recent budget, it allocated AUD 48 million to the sector in a bid to attract skilled workers to the industry and boost training initiatives for hospitality staff. Such initiatives will have a long-term dividend on the sector in addition to a robust pipeline of infrastructure projects that are valued at AUD 42.8 billion in both aviation and accommodation.
This government is thus ensuring a conducive environment for growth but equally supports investor confidence with sound policy frameworks. The commitment to sustainable practices will attract a new wave of consumers while promoting tourism business growth. For investors in funds like Defender Tourism, this will improve long-term capital appreciation as infrastructure improvements will improve both the accessibility and attractiveness of tourism destinations.
3. Attractive Returns from Diverse Investment Strategies
Defender Tourism operates with a well-defined investment strategy that focuses on acquiring real estate assets related to tourism activities – reducing investor exposure via big-ticket investments and providing exposure to a range of tourism-related assets. The fund provides stable returns while pursuing long-term capital growth through active management of its properties. This innovative approach allows investors to enjoy income generation and appreciation of property values over time.
We should remember that the Australian tourism market is composed of various segments to accommodate different types of travellers. This ranges from adventure tourism to cultural experiences that create diverse revenue streams for investment funds. As such, the compound annual growth rate (CAGR) for family travel is estimated at 12.41% from 2023 to 2028, indicating strong demand across various demographics.
Finally, Australia’s AAA credit rating from major agencies reflects economic stability, making it an appealing low-risk investment destination. A mix of government support, infrastructure development, and diversified market opportunities position Defender Tourism as a leading fund for both investor returns and value.
Investing in a tourism investment fund like Defender Tourism offers a range of advantages, tied to the robust recovery of the Australian tourism sector after the Covid-19 pandemic as well as infrastructure development that supports the fund’s diversified investment strategy. With the number of visitors expected to rise in the coming years, now is the opportune time for investors to consider taking positions in Defender Tourism. By aligning with these trends and leveraging the fund’s strategic focus on areas of high demand across the East Coast, investors can capitalise on both stable incomes and long-term capital appreciation.
