Tourism Sector Stocks

I thoroughly enjoyed reading your story and a clarion call on cyclical sectors. Thank you for sharing your observation. I want to know if tourism-related stocks are good buys right now?

- Devan

Editor Responds: Thank you for your reply and for sharing with us your feedback. Yes, cyclical stocks might do well as the economy recovers from recessionary periods. Tourism-related stocks are also expected to recover as the situation normalises. Government regulations and availability of the vaccine will influence this sector particularly. We can expect increase in government spending due to the current account surplus in FY21, which will help boost demand. This in turn will bring positivity in the economy and people might be more open to travel, following which we can expect pick-up in activity in the tourism sector. You may identify buying opportunities in the tourism sector as the sector is expected to do well in 2021, relatively speaking.