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Highlights
- In the wake of the NZ Government's announcement of reopening Auckland’s border by mid-December, travel companies are experiencing a surge in their bookings.
- Serko to announce its interim results next week.
- Tourism Holdings to sell its peer-to-peer businesses for AU$7.37 million.
Jacinda Ardern-led New Zealand Government has announced lifting Auckland’s border restrictions from 15 December for wholly vaccinated people and those carrying negative COVID-19 test results.
Being the epicentre of growing Delta cases in the country, Auckland was under an extended period of lockdown. It was cut off from the remaining country for more than three months.
However, as over 80% of Aucklanders and the rest of the Kiwis are fully jabbed now, NZ authorities have announced opening its borders and allowing eligible people to travel across the city.
As a result, many travel companies, accommodation providers, and airlines like Air NZ, are witnessing a huge demand in their bookings.
With this overview, let us talk about the four prominent NZX-listed tourism stocks, which are likely to get benefitted from Auckland reopening.
Image source: © 2021 Kalkine Media New Zealand Ltd, data source- EODHD/Others
Serko Limited (NZX:SKO; ASX:SKO)
Serko Limited addresses the issues related to corporate travel and expense management. On 24 November, it will release its half-year performance ended 30 September 2021 both on the NZX and the ASX.
Related Read: Why should 5 tourism stocks worry about 2022, not 2021?
The result announcement would be followed by a management discussion.
On 19 November, at the time of writing, Serko was trading up by 1.52%, at NZ$7.99.
Air New Zealand Limited (NZX:AIR; ASX:AIZ)
Air New Zealand Limited carries passengers as well as cargo both in and out of the country. The air carrier today published its 2021 Annual Databook, highlighting its competitive advantages like unparalleled service and loyalty membership, its operating fleet and sustainability with its modern, fuel-efficient aircraft.
Interesting Read: Top 7 things to watch out for in NZ market today
It also talked about its shareholdings comprising of 52% stake of the NZ Government, 35% interests of retail investors, and the remaining belonged to institutional investors.
Further, it gave a detailed description of its balance sheet structure, funding, and liquidity.
On 19 November, at the time of writing, Air New Zealand was trading down by 0.9% at NZ$1.645.
Auckland International Airport Limited (NZX:AIA; ASX:AIA)
One of the busiest airports in the country is Auckland International Airport Limited. Tuesday, the Company released its traffic update for the months of September and October.
Owing to lockdown restrictions in the city, AIA reported that its total passenger volumes declined by 92.2% and 92.5%, respectively, in September and October.
Do Read: AIR & AIA: How are airline stocks surviving the pandemic?
Moreover, the city remained at alert level 3 throughout October, restricting both domestic and international services.
On 19 November, at the time of writing, Auckland International Airport fell by 1.96% at NZ$7.99.
Tourism Holdings Limited (NZX:THL)
Tourism Holdings Limited is NZ’s premier tourism company offering holiday vehicles. It has announced selling its peer-to-peer businesses, namely MIGHWAY and SHAREACAMPER, for AU$7.37 million.
The deal has been made with Australia-based Camplify Holdings Limited, an online marketplace connecting RV owners to hirers.
Related Read: How are NZX tourism stocks doing amid low border crossing?
Through this transaction, THL has ensured maintaining its dominance in NZ's peer-to-peer segment as well as taking advantage of Camplify’s scaling benefits in Australia.
The said sale is likely to be completed on 30 November.
On 19 November, at the time of writing, Tourism Holdings was up by 0.69% at NZ$2.920.
Bottom Line
With the reopening of Auckland borders, the NZ Government is trying to revive the city’s businesses as well as its domestic tourism sector, which will see an influx of travellers during the Christmas season.