Tourism Holdings (THL) provides exposure to the buoyant tourist markets of New Zealand (NZ) and Australia. In 2015, in-bound visitor numbers were up 9.7% in NZ and 8.2% in Australia. In both markets visitors from China showed the strongest growth. This trend continues in 2016. THL’s focus will remain on innovative ways to reduce the capital costs in the business and achieve a long-term average company-wide ROCE target of 14%. Our forecasts show FY16 ROCE reaching 16.2% and improving thereafter.
