The Spanish tourism sector is the third most powerful in the world, only behind the United States and France. This is a fact that you can take advantage of to make your savings profitable through the stock market values of these characteristics. However, and despite the relevance of the tourist industry nationally, only four companies are listed on the benchmark index for Spanish equities, the Ibex 35: Amadeus, AENA, IAG and Sol Meliá. Although at least to meet the demand of these special investors who want to invest in the tourism sector above all else.
Tourism is the leading industry in the Spanish economy, but at the same time a sector that is very wasted on the stock market by the few companies that are represented in the continuous market. The Tourist Movements on Borders (FRONTUR) during the past year endorse the privileged position of Spanish tourism by showing that a total of 81,8 million tourists visited our country during this period.
These data represent a 8,6% increase with respect to the tourist flow of the previous year. To the point of becoming the third world tourism power, only behind the United States and France, with updated data from the World Tourism Organization (UNWTO). And all this despite showing a certain slowdown in tourist flows from outside our borders, as is happening in the summer months: July and summer. Where there has been a drop in visits of almost 2% compared to the previous year.
Tourism a very stable sector
These short-term data is an additional reason for investors to be interested in this important professional segment. However, and despite its special impact on national public accounts, does not have a specific sector within Spanish equities. As with construction, financial services or technology and communications. But on the contrary, it is encompassed in consumer services, along with the media and food distribution chains. This is one of the main drawbacks to clearly identifying tourism companies that can make up the portfolio of retailers.
It is a sector whose business activities are highly diversified and affects hotel accommodation, air transport, leisure and reservation centers. Each one of them only has a few representatives to satisfy a demand in the majority investment. Nor is there any relevant reference abroad to establish a comparison with other companies in the sector. But even so they present a series of characteristics that are common to all of them. Traditionally linked with the tourist flow, with the infrastructures that they provide to travelers and with regard to Spain, with the offer of "Sun and beach" which is its most important asset in relation to its main competitors.
Listed companies in the sector
At the moment, only a dozen of the approximately 130 companies that are integrated into the continuous market are dedicated to this activity. With only four representatives on the Ibex 35 (Amadeus, AENA, IAG and Sol Meliá). Unlike previous years, their prices so far this year are lower than those generated by the selective index of the Spanish stock market (-0,67%). Where only one value of the tourism sector shows a better performance, specifically Amadeus which depreciates slightly to 0,35%. Affected in all cases by the historic fall (5%) of the United States stock market.
With business lines, even within the same business segment, as is the case with the only two representatives of the hospitality industry, which represent different business niches. While the Sol Meliá chain bases its offer mainly on the "sun and beach" segment, NH Hotels is based on urban tourism and business travel.
Airline representatives
For their part, the airlines that are listed on the Spanish continuous market, IAG and eDreams, they maintain the same commercial constants and in both cases the price of their shares depends on the level at which the price of oil develops in the financial markets. Other proposals that are the object of investors' operations are Amadeus or Parques Reunidos, although from different approaches to the previous ones.
It is a sector in general that is closely linked to economic growth. The greater the expansionary process in the economies, the better business results you will obtain from the listed companies. So that in this way it is transferred to the price of the shares. On the other hand, and as a negative element, stands out his greater sensitivity towards terrorist attacks that take place somewhere on the planet. Not surprisingly, it has a direct impact on the travel of travelers.
Terrorist attacks in Barcelona
To the point that after the attacks in Barcelona last summer, it was tourist values that led losses on all European stock exchanges. In Spain, with falls above those generated by the Ibex 35 (1%). IAG, with depreciation of 3%, and NH Hoteles and Sol Meliá, around 2,5%. Leaving almost 300 million euros in the stock market in a few hours. As the sector most affected by these terrorist actions and above other values of national equities. This this is one of the serious dangers that the sector faces since it is much more sensitive to the falls being installed with force in the positions of the values of these characteristics.
Not surprisingly, when any of these serious incidents occurs, the most sensible thing that small and medium investors can do to move away (even momentarily) from these values. Because they usually suffer cuts in your prices in a very spectacular way. With decreases of more than 5% and that are maintained while the uncertainties last. It is true that they not only correspond to the values of the tourism sector, but it is the most sensitive to sharpen them with respect to their intensity. And now, unfortunately, we are immersed in a process of these characteristics, where at the least expected moment an attack with these hallmarks can take place.
Contributions of tourist values
This class of proposals to invest money in equities is characterized fundamentally because they depend more than ever on consumption. In this sense, they are very similar to cyclical stocks, which behave better in expansive periods and worse in recessives. That is to say, you have to know how to operate with them so as not to take the odd surprise during the trading course. On the other hand, they are securities with which their lines of business are more familiar, among other reasons because with all their security you are using them yourself to spend your vacations or simply enjoy the odd trip or trip.
You should also take into account from now on that tourist values are more related to Spain than to another international country. Although without being duly reflected in the number of companies listed on the Spanish stock market. Not in vain, they are still very few if one takes into account the weight that our country exerts within the international tourism sector. Where it even has the most representative sector fairs around the world. In this sense, or it can be forgotten that the so-called sun and beach in Spain is considered as a financial asset. Something that does not happen, for example, in Slovenia, Poland or Sweden to name just a few examples.
How to operate with these values?
Another aspect to assess is the operation in this class of securities. Well, one of the best times to take positions is in the summer months. Precisely because it is when the tourist flows and where the activities of the companies in the sector are greater. In theory, this fact should materialize with a rise in the prices of the quotations. Although of course it is not always like that, far from it. Because they also depend on other very relevant factors and that of course must be taken into account from now on. Especially when tourism companies are so few in the current supply offered by national equities.
From this general scenario, another factor that must be stopped is in reference to the dividend payment by these companies. Very few are responsible for distributing it and with a very small return that rarely exceeds 4%. Below that presented by other sectors of national equities. From this perspective, tourism dividends are not very profitable and much less profitable for investors. On the other hand, one of the best attractions to take positions in these companies is the stability that tourism represents in the Spanish economy. Although it has not been noted excessively in a significant appreciation in the price of these securities. In theory, this fact should materialize with a rise in the prices of the quotations.