The World Travel & Tourism Commission estimates that the US$486 million industry will grow by 7% in 2007 and 5% annually over the next ten years. Over 23,000 Batswana work in tourist-related jobs. That’s over 4% of the country’s total employment.
Chobe Holdings, listed on the Botswana Stock Exchange, operates smack dab in the middle of this industry. The company operates luxury lodges and tours in Botswana, Namibia, and Zambia.
You can see the region’s tourist boom reflected in Chobe’s bottom line. Earnings increased an average of 96% annually from 2003-2006. Its stock price increased 346% in US$ terms over the past three years. The company now trades at a P/E ratio of 17.
Disclosure: Ryan does not own shares of Chobe Holdings.
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