After 50 years, Sydney is getting a second airport and Melbourne, wait for it, is potentially getting a train line to its airport.
While Australian infrastructure upgrades move at a snail’s pace, completely the opposite is happening in China, where major investments in critical transport infrastructure, particularly airports, will drive an Asian tourism boom the likes of which has not been seen since the Japanese tourism boom of the 1990’s. I remain extremely bullish on the outlook for Asian tourism, but most specifically, Chinese tourism. This is a genuine structural growth theme that we believe in and are invested in.
The case for Chinese tourism
A rising middle class, significant investment into travel infrastructure, and very supportive government regulation, all come together to drive this growth in Chinese tourism. In particular, we are very positive about the outlook for air passenger volume growth in China (both domestic and international). Chinese air passenger numbers have grown at a compound average growth rate of around 12% per annum over the past decade, and we expect growth will remain around these levels for the medium term.