Australia has been reasonably resilient throughout the pandemic, and we believe it will continue to be a desirable location to invest, work, and study. We are currently in a period of transition, and when the borders fully open, we will likely see the emergence of key patterns, such as an increase in travel due to previously suppressed demand.
Global economies’ expansionary monetary and fiscal policies provide a substantial tailwind for the recovery. Simultaneously, the vaccine campaign is boosting economic activity, aiding in the return of travel, and, most significantly, improving the quality of human life.
Companies have had a positive reporting season and are planning to expand their investments as the economy improves. Clothing retailers like Kmart for example, have reported positive sales gains as the cotton industry is experiencing a boom. In the same light, we have identified a few industries showing massive growth potential in 2022 to guide investors.
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Liquified Natural Gas Production
(2022-2023 revenue growth estimate: 82.9%)
Over the last five years, the liquefied natural gas (LNG) production business has grown significantly as project development has boosted the industry’s scale and production capability. As a result, LNG exports from Australia have climbed from 20.0 million tonnes in 2010-11 to 81.9 million tonnes in 2021-22. Over the 5 years from 2017 to 2022, industry revenue was predicted to increase by 17.6% annually to $55.7 billion.
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Australian Hotels and Resorts
(2022-2023 revenue growth estimate: 66.6%)
Over the last 5 years, the fortunes of the Hotel & Resorts industry have been uneven. The declining Australian dollar aided the sector at the start of the period by raising the number of overseas arrivals, notably from Asian countries, by making travel in Australia less expensive. On the other hand, travelling outside of Australia became more expensive due to the weakening of the Australian dollar. This tendency increased demand for the industry’s services. There was a significant increase in the amount of domestic and international tourist visitor nights. In addition, domestic business travel, which is a substantial revenue stream, also increased. It is estimated that the industry will experience a revenue growth of 66.6% between 2022 and 2023.
Inbound Tourism Operators
As the travel industry is recovering, it is also expected that the Inbound Tour Operators (ITO) industry will also expand. Growth is pegged at 4280% between 2022 and 2023. The number seems huge because travel was restricted during 2020 and 2021, but now things have eased up so do keep that in mind. Inbound tour operators generally plan and put together trip packages that include a variety of domestic tourism products like lodging, transportation, scenic tours, and meals. These packages are then resold to international travel wholesalers and retailers, who then sell them to international travellers. The amount of inbound tourists to Australia determines a big part of the industry’s earnings.
Solar Electricity Generation
(2022-2023 revenue growth estimate: 63.6%)
Between 2017 and 2021, the solar electricity generation industry has experienced rapid revenue growth. Over the five years, industry revenue increased by 46.5% on an annual basis, totalling $415.8 million. This boom was fueled by the creation of large-scale solar farms, which have raised industry generation from less than 500 GWh in 2016 to over 5500 GWh in 2021.
Cotton Ginning
(2022-2023 revenue growth estimate: 71.6%)
Cotton ginning is a vital aspect of the agricultural support services business as well as the national cotton industry. Before the product can be used, raw cotton must be processed into lint and seeds by a cotton gin. The Cotton Growing industry has a strong influence on the industry’s performance. Climate change, water supply control, global cotton demand fluctuations, and cotton stockpiling are all issues that have an indirect impact on the sector. In 2022, the revenue from cotton is estimated to increase by 71.6%. This is also checks with the recent reports of the clothing industry currently leading sales gains.
More insights
Technology, media, and telecommunications continue to shine, while pharmaceuticals, medical, and biotech are also firming up. In 2022, we expect business services and energy, mining, and utilities to be particularly active in dealmaking.
The conclusion
While we know there are many other factors to consider before you can dive into an investment, looking at estimated revenues will surely give you an insight into each industry. Thorough research and due diligence will help you to find the perfect investment with good returns. Keep looking out for new articles with advice on the Australian economy on our site.
