How are NZX tourism stocks doing amid low border crossing?

Highlights

• September 2021 witnessed the lowest border crossings in NZ since May 2020, owing to a pause in quarantine-free travel with Australia and the Cook Islands.
• Auckland International Airport declared the closure of its bond offer; bonds to be issued this week.
• Tourism Holdings enters into an agreement to sell Mighway and SHAREaCAMPER’s businesses for AU$7.37 million.

New Zealand is world-famous for its tourist destinations. However, owing to the pandemic, its tourism sector bore the maximum brunt.

With the start of the quarantine-free travel with Australia, the sector looked optimistic and keen on recovery.

But, with the resurgence of Delta cases, and lockdowns and restrictions imposed thereon, the total number of people crossing the NZ border was just 16,100 in September 2021, which was the lowest since May 2020.

How are NZX tourism stocks doing amid low border crossing?

A temporary halt to quarantine-free travel with Australia and the Cook Islands was the prime reason for low border crossings.

On the other hand, provisional data for October 2021 reveals a small increase in border crossings, including one-way quarantine-free travel for workers from Samoa, Tonga, and Vanuatu.

That said, let us go through the three NZX tourism stocks to watch out for in the current month.

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- EODHD/Others

Air New Zealand Limited (NZX:AIR; ASX:AIZ)

Air New Zealand Limited boasted operating about 3,400 flights per week during the pre-COVID-19 period. In its recently released investor update for September, the Company flew just 266,000 passengers during the month, a reduction of 60.8% on pcp, due to lockdown restrictions being imposed throughout the country.

Also, it had virtually held its ASM, wherein its shareholders supported resolutions for director elections.

Interesting Read: Air NZ (NZX:AIR): What were the highlights of recently held ASM?

On 16 November, at the time of writing, Air New Zealand was trading down by 1.20% at NZ$1.650.

Auckland International Airport Limited (NZX:AIA; ASX:AIA)

One of the busiest airports in the country is Auckland International Airport Limited. A few days back, AIA announced the closure of its bond offer and successfully allocated funds worth NZ$150 million in the bookbuild process.

Related Read: Why should 5 tourism stocks worry about 2022, not 2021?

The interest rate of the said bonds has been fixed at 3.29%.

These bonds will be issued on 17 November and will mature in 2026.

On 16 November, at the time of writing, Auckland International Airport was trading up by 0.42% at NZ$8.285.

Tourism Holdings Limited (NZX:THL)

Tourism Holdings Limited is the largest global supplier of holiday vehicles for the purposes of rent and sale. Recently, THL revealed the signing of a deal to sell its peer-to-peer business Mighway and SHAREaCAMPER  to Australia-based Camplify Holdings Limited.

The said deal is fixed at AU$7.37 million and is expected to be completed on 30 November.

On 16 November, at the time of writing, Tourism Holdings traded flat at NZ$2.900.

Also Read: Is there any respite from pandemic to 3 NZX travel and tourism stocks?

Bottom Line

Though the NZ tourism sector is going through a tough time, the national Government is leaving no stone unturned to curb the spread of the Delta variant within its shores and at the same time has been allocating requisite funds to the affected sector to cope with difficult times.