Two months ago, tourism and travel stocks were in disarray. The Trump administration’s crackdown on travellers into the United States and a worsening Middle East conflict had many investors wary of backing a sector that had barely recovered after the COVID-19 pandemic.

Now – as the uncertainty recedes, somewhat – big investors are scouring the sector hoping to find a bargain. Locally listed travel businesses are also being helped by a surprisingly enduring boom in tourism. Figures published by the Australian Bureau of Statistics show a 20.1 per cent increase in the number of short trips taken in May compared to the same time last year.