Tourism is a sector where, instead of betting on a single stock, it is better to own a set of stocks. That will help investors gain from spending by every segment of tourists, and in every section of the hospitality ecosystem – while also avoiding some risks. For example, taking exposure only to hotel stocks comes with its pros and cons. In the event of a slowdown, a hotel company with high debt may find it tough to survive. In the past, a very large hotel group went belly up just because of this. Also, taking exposure only to hotel stocks means you are ignoring a large part of the spending done by tourists.
