AgriTourismBook 20171

Download as pdf or txt
Download as pdf or txt
You are on page 1of 171

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/313671011

Agri Tourism Segment of Rural Tourism

Book · February 2017

CITATIONS READS

0 4,780

1 author:

Rohana Mahaliyanaarachchi
Sabaragamuwa University of Sri Lanka
39 PUBLICATIONS   51 CITATIONS   

SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Developing Agri and Rural Tourism View project

All content following this page was uploaded by Rohana Mahaliyanaarachchi on 14 February 2017.

The user has requested enhancement of the downloaded file.


Agri Tourism
Segment of Rural Tourism

Rohana P Mahaliyanaarachchi

1
2
Agri Tourism
Segment of Rural Tourism

3
4
Agri Tourism
Segment of Rural Tourism

Rohana P Mahaliyanaarachchi

Department of Agribusiness Management,


Faculty of Agricultural Sciences,
Sabaragamuwa University of Sri Lanka
Belihuloya. 2017

5
© Rohana P Mahaliyanaarachchi

Al rights reserved. No part of this publication may be reproduced, stored


in retrieved system or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without prior permission of
the author mainly for commercial purposes. However, for academic or research
purposes, researchers, university teachers & students and such personals are
allowed to use the information in this book freely without prior permission.

First published : 2017

ISBN : 978-955-644-054-6

Published by:

Department of Agribusiness Management,


Faculty of Agricultural Sciences,
Sabaragamuwa University of Sri Lanka
Belihuloya. 70140
Sri Lanka

6
CONTENTS

Preface i

Chapter One 1

Overview of Tourism, Alternative Tourism and Agri Tourism 1

Tourism as a main economic sector 1


Tourism vs alternative tourism 4
Place of Alternative tourism in the tourism sector 6
Agri Tourism as an alternative tourism 9
Definitions of Agri Tourism 14
Agri Tourism as a niche market 16
Uniqueness of Agri Tourism 17
Agri Tourism as an agri business 19
Impact of agri tourism in sustainable rural environment and
development 21
Social and cultural impact 24
Economic impact 24
Environmental impact 25

Chapter Two 26

Agri Tourist 26

Who is a tourist? 26
Classification of tourist 27
Types of tourists 29
Definition of an agri tourist 31
Types of agri tourists 32
Identification of the needs of an agri tourist 35

7
Chapter Three 38
Identifying Agri Tourism 38

Place of Agri Tourism 38


Types of Agri Tourism 41
Potential Agri Tourism activities 58

Chapter Four 61
Planning and Organizing an Agri Tourism Farm 61

Types of Agri Tourism farms 61


Agricultural only farms vs Agri Tourism farms 63
Main features of an Agri Tourism farm 64
Things to see 64
Things to do 66
Things to buy 67
Hospitality of an Agri Tourism farm 68
Establishing and Running of an Agri Tourism farm 69
Standards required for an Agri Tourism farm 71

Chapter Five 73

Agri Tourism Product Development and Products 73

Classification of Agri Tourism products and services 73


Components of Agri Tourism products and special features 75
Participation of stakeholders in product development 77
Agri accommodation 77
Direct marketing 80
Farm tours 81
Coffee tours 82
Tea tours 82
Banana tours 83
Packaging Agri-Tourism experience 84
Pricing of Agri Tourism products 84

8
Chapter Six 87

Business Plan for an Agri Tourism Enterprise 87

Business consideration 87
Business structures with no personal liability protection 87
Requirements to start up a farm stay 88
Planning the business (Business plan for the farm stay) 90
Description of business 90

Chapter Seven 95

Marketing and Promotion of Agri Tourism products 95

Agri Tourism marketing mix 95


Place 95
Product 96
Price 96
Promotion 97
People 98
Physical evidence 98
Process 98
Market positioning 99
Agri Tourism distribution network 100
Supply and demand 101
Direct marketing 101
Familiarization tour 101
Promoting by using World Wide Web 102
Free social media sites 104

Chapter Eight 106

Special Features of Agri-Tourism 106

Agri-tourism as a moderated rural business 106


Effect of agri-tourism in the development of rural tourism and
agriculture sectors 107
Agri-tourism as a risk management strategy in the rural
agriculture sector 110

9
Agri-tourism to enhance the income level of farms 120
Agri-tourism as an additional income source to the farming sector 123

Chapter Nine 126

Cases in Agri -Tourism 126

Costales nature farms in Philippines 126


Lake Serenity Farm Stay in Sri Lanka 129
Kahuku Farms in Hawaii 129
Dole Plantations in Hawaii 130
C HIENHU CHUANCHI Ecological Farm (CHCC) in Taiwan 131
Dewalokam Kerala Homestay in India 132
Komatsuzawa Leisure Farm in Japan 132
Banana Tour, Sarapiqui, Costa Rica 134
Arusha Coffee tour in Tanzania 135
Heritance Tea Factory, Sri Lanka 136
Wild Thyme Organic Farm and Eco Retreat in Bulgaria 138
Rajgad Farms in Maharashtra, India 140
AgriturismoTenuta di Forte Sorgnanoin Italy 141

Bibliography 143

Rural Tourism Attractions Around The World 149

10
Preface
In year 2014 and 2015 I was able to organize two conferences on development
and promotion of agri-tourism and rural based tourism in Sri Lanka in Colombo
with the sponsorship of Asian Productivity Organization (APO) in Tokyo,
Japan. Through these two success events, we could promote agri- tourism and
rural based tourism among both state and private sectors to a higher level. Since
2012, I was given opportunities by the National Productivity Secretariat of Sri
Lanka (NPOSL) and Asian Productivity Organization (APO) to participate in
training programmes in home stays, farm stays and rural tourism in Malaysia,
Hawaii and Lao PDR. I was able to collect lots of first hand experiences on
rural and agri-tourism from these countries which I am trying to share with rest
of the world through this book.

The main purpose of writing this book therefore, is to compile the basic as
well as important areas of agri-tourism farms, enabling interested readers
to get a basic knowledge on farm stays as a tourist accommodation facility,
planning and developing farm stays and ways of marketing and promoting
them. There are number of examples of rural and agri-tourism enterprises are
described in chapter nine. This book is published coincide with the “National
Conference on Development of Rural Tourism for Enhancing Livelihoods of
Rural Communities in Sri Lanka” to be held from 23rd to 24th February 2017
in Colombo, Sri Lanka jointly organized by the Department of Agri Business
Management of the Faculty of Agricultural Sciences of the Sabaragamuwa
University of Sri Lanka and the National Productivity Secretariat of Sri Lanka
(NPOSL) with the sponsorship of Asian Productivity Organization (APO) in
Tokyo, Japan.

The main objective of the conference is to provide a venue for dialogue and
to create public awareness of the development and promotion of rural tourism
in Sri Lanka. The specific objectives are to define the concept of rural tourism
as well as its importance and benefits as a tool for economic development and
a strategy to create alternative income opportunities for rural communities to
promote inclusive economic growth in the country, to share successful models,
best practices, and requirements of rural tourism that can be developed and
promoted in the country and to identify appropriate strategies and recommend
action plans for the promotion and development of rural tourism in the country.

I hope this book will provide necessary information to the participants of this
conference and the rest of the interested readers on agri-tourism farms and farm
stays which is a sub sector of rural tourism.

i 11
I must thank to the Asian Productivity Organization (APO) for providing funds
to publish this monograph, Mr. Harsha Udayakantha Peiris for copy editing,
and giving his valuable ideas, Mr. Prasad C. Iddamalgoda for designing an
attractive cover page and for computer page setting of this book. My gratituted
must also go to Mr. P Sivashankar, Lecturer of my department for his support
given in different ways.

Professor Rohana P Mahaliyanaarachchi


Senior Professor of Agri Business Management

09.02.2017

12 ii
Chapter One
Overview of Tourism, Alternative Tourism and Agri-Tourism

Tourism as a main economic sector

T he growth of tourism as a social activity along with the development of the


industry of tourism throughout the world as a highly important economic
function has been impressive during the past three centuries. During the last
seven decades after World War II most of the countries and regions throughout
the world have given priority to the industry of tourism in their macroeconomic
phenomenon. Developed countries like France, United Kingdom and United
States of America are still dominating in this industry. However, developing
countries like China, Malaysia, India, Vietnam and Thailand are in the emerging
markets in the tourism industry. The expansion of tourist activities has coincided
with significant cultural, social, economic and environmental changes identified
with modern technology of the recent past decades and these include intensive
air travel, development of internet, e business, mobile phone technology, etc.

According to the analysis of Travel and Tourism Competitiveness (TTC) of


economies around the world conducted by the World Economic Forum in 2015,
enabling environment (business environment, safety and security, health and
hygiene, human resources and labour market, ICT readiness), T &T policy and
conditions (prioritization of travel and tourism, international openness, price
competitiveness, environmental sustainability), infrastructure (air transport
infrastructure, ground and port infrastructure, tourist service infrastructure),
nature and cultural resources (natural resources, cultural resources and business
travel) as the sub categories considered to computed overall index. As usual
the top ten “tourism ready’ countries are highly developed destinations such
as Spain, France, UK, USA, Germany, Switzerland, Australia, Italy, Japan
and Canada. In Asia pacific region, the top ten tourism ready countries are
Australia, Japan, Singapore, Hong Kong SAR, New Zealand, China, Malaysia,
South Korea, Taiwan and Thailand (World Economic Forum, 2015).

Impact of the industry of travel and tourism on the economic and social
development of a country can be enormous. It covers economic areas of a country
such as opening it up for direct and indirect business in travel and tourism,
trade and capital investment, creating both direct and indirect employment and
entrepreneurialism for the workforce. Further, it covers social values such as
protecting heritage and cultural norms and values of the communities.

1
The travel & tourism industry generated US$7.6 trillion (10% of global GDP)
and 277 million jobs (1 in 11 jobs) for the global economy in 2014. Recent
years have seen travel & tourism industry growing at a faster rate in comparison
to the growth rates of wider economy and other significant sectors such as
automotive, financial services and health care. International tourist arrivals
also surged, reaching nearly 1.14 billion visitor spending increased against
that growth. Visitors from emerging economies now represent a 46% share of
these international arrivals (up from 38% in 2000), contributing to the growth
and increased opportunities for travel from those in these new markets (World
Travel & Tourism Council, 2015).

Over the past six decades, tourism has experienced a continued expansion
and diversification to become one of the largest and fastest-growing economic
sectors in the world. Many new destinations have emerged in addition to the
traditional favorites of Europe and North America

International tourist arrivals in the world in 2015 was 1186 million. Similarly,
international tourism receipt earned by destinations worldwide in 2015 was US$
1260 billion. Tourism is a major category of international trade in services. In
addition to receipts earned in destinations, international tourism also generated
US$ 211 billion in exports through international passenger transport services
rendered to non-residents in 2015, bringing the total value of tourism exports
up to US$ 1.5 trillion, or US$ 4 billion a day on average. International tourism
now represents 7% of the world’s exports in goods and services, up from 6%
in 2014, as tourism has grown faster than world trade over the past four years.

As a worldwide export category, tourism ranks third after fuels and chemicals
and sustains ahead of food and automotive products. In many developing
countries, tourism ranks as the first export sector. (UNWTO Tourism Highlights,
2016 Edition)

The number of international tourist arrivals (overnight visitors) in 2015


increased by 4.6% to reach a total of 1186 million worldwide, an increase of
52 million over the previous year. It was the sixth consecutive year of above-
average growth in international tourism following the 2009 global economic
crisis. Tourism flows were influenced by three major factors in 2015; the
unusually strong exchange rate fluctuations, the decline in the price of oil and
other commodities, and increased global concern about safety and security.

By UNWTO region, the Americas and Asia and the Pacific both recorded
close to 6% growth in international tourist arrivals, with Europe, the world’s
most visited region, recording 5%. Arrivals in the Middle East increased by
2%, while in Africa they declined by 3%, mostly due to weak results in North

2
Africa. International tourism receipts grew by 4.4% in real terms (taking
into account exchange rate fluctuations and inflation) with total earnings in
the destinations estimated at US$ 1260 billion worldwide in 2015. (UNWTO
Tourism Highlights, 2016 Edition)

When ranking the world’s top international tourism destinations, it is preferable


to take more than a single indicator into account. Ranked according to the two
key inbound tourism indicators– International tourist arrivals and international
tourism receipts –it is interesting to note that seven destinations appear in the
Top 10 of both rankings, despite marked differences in terms of the type of
tourists they attract, average length of stay, and spending per trip per night.
In the case of international tourism receipts, changes in the ranking not only
reflect relative performance, but also the exchange rate fluctuations between the
local currencies and the US dollar. This was particularly the case in 2015, when
the US dollar appreciated considerably against the euro and many other world
currencies. (UNWTOTourism Highlights, 2016 Edition)

The top four places in the ranking by international arrivals and the ranking
by receipts are occupied by the same countries, albeit in a different order. The
United States is the world’s top tourism earner with US$ 205 billion recorded
in 2015, it is also the number two destination in international arrivals with 78
million. China is the second largest earner with US$ 114 billion, and fourth in
arrivals with 57 million. Spain comes third, both in receipts (US$ 57 billion)
and arrivals (68 million). Although France is the fourth largest tourism earner
with US$ 46 billion reported in 2015, it became the world’s top destination in
terms of arrivals with 84 million tourists in 2015. (UNWTO Tourism Highlights,
2016 Edition)

Asia and the Pacific welcomed 279 million international tourist arrivals in 2015,
seeing an increase of 15 million more than in 2014, corresponding to a 6%
growth. The region earned US$ 418 billion in international tourism receipts,
an increase of 4% in real terms. Asia and the Pacific accounts for 24% of the
world’s arrivals and 33% of receipts. By sub region, South-East Asia (+8% in
arrivals) and Oceania (+7%) recorded the strongest growth.

International arrivals in South Asia increased by 4%, driven by the sub region’s
top destination India (+5%). Sri Lanka enjoyed an increase of 18% in its sixth
straight year of double-digit growth, while the Maldives reported a more modest
2% growth. Arrivals in Nepal declined last year following the earthquake in
April. (UNWTO Tourism Highlights, 2016 Edition)

Travel & Tourism generated 105,408,000 direct employment in 2014 (3.6%


of total employment) and this is forecast to grow by 2.0% in 2015 with up to

3
107,519,000 (3.6% of total employment).This includes employment by hotels,
travel agents, airlines and other passenger transportation services (excluding
commuter services). For example it includes, the activities of restaurants and
leisure industries directly supported by tourists. By 2025, Travel & Tourism
will account for 130,694,000 direct employment, an increase of 2.0% pa over
the next ten years (World Travel & Tourism Council, 2015).

Tourism comprises the activities of persons travelling to and staying in places


outside their usual environment for not more than one consecutive year for
leisure, business and other purposes not related to the exercise of an activity
remunerated from within the place visited. Tourism is different from travel. In
order for tourism to happen, there must be a displacement; an individual has
to travel, using any type of means of transportation (he/she might even travel
on foot: nowadays, it is often the case for poorer societies, and happens even
in more developed ones, and concerns pilgrims, hikers …). But all travel is not
tourism.

Three criteria are used simultaneously in order to characterize a trip as belonging


to tourism. The displacement must be such that:

► It involves a displacement outside the usual environment; this term


is of utmost importance and will be discussed later on
► Type of purpose; the travel must occur for any purpose different from
being remunerated from within the place visited, the previous limits,
where tourism was restricted to recreation and visiting family and
friends are now expanded to include a vast array of purposes
► Duration; maximum duration is one year period.
Definition of tourism

Tourism

It comprises the activities of persons traveling to and staying in places


outside their usual environment for not more than one consecutive year for
leisure, business and other purposes not related to the exercise of an activity
remunerated from within the place visited.

Tourism vs alternative tourism

Conventional or normally known as mass tourism needs large scale organization


and resources. Some may argue alternative tourism is anything other than mass

4
tourism. In one hand, it is true. People who do not like to spend their vacation or
relaxation by the ways of mass tourism select different ways which are suitable
to them. However, today alternative tourism becomes more popular among the
people and a substantial share in the tourism industry devotes to the alternative
tourism sector.

Even though today’s alternative tourism is emerged widely, it is not a new


concept. It has been introduced in the early part of the nineteenth century.
Definitely by the term, it shows that alternative tourism is essentially the
substitute form of tourism to the mass tourism (de Kadt, 1990). There are
identified characteristics of alternative tourism as described below.

► It does not damage and harmful to the natural, physical and human
environment and do not cause for negative impacts of mass tourism
such as water, air and land pollution, cultural changers, influence to
the natural human habitats, change of human lifestyle, and etc
► It will encourage small scale economic and social development which
is acceptable by the local communities. Involvement and benefits
for the local communities are greater and therefore, they support to
the alternative tourism activities and lesser or no conflicts between
tourism providers, tourists and local people.
► More often, mass tourism is organized by outbound tour operators and
multinational companies and revenue of the business does not remain
in the region or in the country. Higher percentage of the revenue flows
back to these developed countries. However, in alternative tourism,
revenue of the business mainly remains within the local community.
The benefits flow to the local communities and especially to the
economically handicapped people.
► Alternative tourism leads to alternative development of the
communities. It is a sustainable development. It does not damage
the day to day life of the local people. It is accepted that alternative
tourism always leads towards sustainable development and protection
of cultural values of these communities.
However, from the recent past, the tourism sector demonstrates the changes in
travelling attitude, decrease in the seasonality feature of tourism and ‘active
holidays depending on culture, nature and traditional way of life have become
the objectives of new tourists’ and the economic, social and environmental
impacts on the area where tourism activities take place in.

In 2015, world tourism has been dominated by two major companies namely
TUI Travel Plc and Thomas Cook Group Plc. and had 54,000 employees.

5
TUI Group is the world‘s leading integrated tourism group having more than
30,000,000 customers per annum, operated in 180 countries with 200 brands in
31 key source markets around the globe. They have 140 aircrafts, operates in
180 destination countries, 67,000 employees, 300 hotels worldwide, 14 cruise
ships and 05 tour operator airlines.

Thomas Cook Group Plc. has managed 19,000,000 customers in 2015, has
190 branded hotels, 94 aircrafts, 700 travel shops, and 21,940 employees. TUI
group is a German company and Thomas Cook Group Plc is operating from
the UK. This information clearly indicates how these multinational companies
control the whole economy in the tourism industry.

Today, full package holiday approach of mass tourism is one of the negative
factors that affect the economic survival of local small-scale entrepreneurs
through its feature of leading the tourists stay in the facility during their holidays.
Therefore, it leads following specific tourism development approaches distinct
from mass tourism development for developing new sub-sectors of tourism,
which is named as alternative tourism.

Most of these alternative tourism approaches are closely related with rural
economy and thereby rural development. The main reason for this is the fact
that tourist destinations of these alternative tourism approaches are rural areas.
The alternative tourism approaches are namely nature tourism, eco-tourism,
heritage tourism, agri tourism, farm tourism, religious tourism and many more.
The segment of alternative tourism creates a new economic opportunity in rural
areas. It leads to the relationship between socio economic development and
tourism in rural areas. Further, such economic relationship causes to create a
number of tourism types in rural areas.

However, alternative tourism activities are not limited only to rural areas.
Especially types of tourism such as MICE (Meetings, Incentives, Conferences
and Exhibitions) tourism, war tourism, slum tourism, sports tourism are related
to both urban and suburban areas. Therefore, benefits of alterative tourism
definitely filter to both rural and urban communities.

Place of alternative tourism in the tourism sector

Tourism fulfills a human need for rest and recreation. People normally set out
to see other places and meet other people. Other people, meanwhile, extend
their hospitality to their guests - a national trait worthy of praise. Nevertheless,
tourism also satisfies the thirst for profit. Big business, hungry for megabuck
profits, resorts to gross commercialism and imposes unsuitable development
programs.

6
In the process, people get trampled upon, cultures erode and eco-systems
deteriorate. Developing countries such as Sri Lanka, India, Thailand, Vietnam,
Cambodia, Myanmar, Tanzania, etc are the main recipients of these `development
programs, who usually end up the losers.

Tanzania in Africa has gained a larger income from its tourism industry.
However, considering the cultural degradation took place due to mass tourism
industry in the country, Mr Julius Nyerere the first President of Tanzania once
said “I don’t want foreign currency through this kind of tourism which erodes
the culture and human values of my people. I would like to stop it if this situation
continues”.

The hotel and airline industries control the bulk of the tourist business as tourist
spending goes mainly to the carrier and to accommodation. A good part of the
earnings also goes to tour and travel operators. These transnational companies
either affiliate with each other or they are subsidiaries of larger multinational
co operations that, earn billions of dollars from the tourist money spent on
holiday travel, rest and recreation, and even business and convention activities.
Transport industry suppliers such as shipbuilding and train industries also rake
in a good profit. The construction industry, likewise, profits from hotel and
resort building contracts.

Many developing countries in the early 1970s accepted tourism as a quick


recipe for development. Confounding from high unemployment rates and heavy
indebtedness, many governments saw tourism as a source of foreign exchange
to fund balance of payments deficits and service their foreign debts. Tourism
also promised a viable source of investment for their backward economies and
a source of quick livelihood and employment for their unskilled workers.

From around 70 million people who spent a few billion dollars in 1960, the
number of tourists rose to 1.186 billion, spending US$ 1.5 trillion, in 2015. A
total of 298 million international tourists travelled worldwide between January
and April 2013, an increase of 12 million against the same period the previous
year according to the latest UNWTO World Tourism Barometer. Prospects for
the current tourism peak season remain positive with some 435 million tourists
expected to travel abroad in the May-August period.

Tourism is a big business in the world, but the main income of this business
again remains with the first world countries through larger conglomerates. With
encouragement from the World Bank and the IMF, this tourism-development
strategy paved way for the entry of Trance National Companies and other
investments in hotel and resort development, foreign-funded government

7
infrastructure and other tourism-related projects and tourism programs. Bilateral
and multilateral loans poured in to finance these projects.

Being economically least sound, many developing countries have to seek the
support of bilateral and multilateral loans to finance these projects. Various
aid organizations like the UNDP, WTO, ESCAP, JICA and ADB lent their
`expertise’ in supporting and promoting tourism or tourism-related projects
in South Asia, Southeast Asia, South America, the Caribbean and the Pacific
islands. People from developed countries were delighted to visit cheap, exotic
and unspoiled destinations in these developing countries.

In this process, the social, economic and cultural life of many developing
countries was opened up to wide scale tourism exploitation and their natural
resources displayed for despoiling. Mass tourism’s negative impact on
developing countries and their peoples is hazardous. Self-sufficient economies
of these countries got suffocated, social relations were broken, cultures were
eroded and environments were seriously damaged.

Alternative tourism emerged from the developing countries as a reaction to the


negative effects of mass tourism heaped on them.

Alternative Tourism, as a counter trend, seeks to rectify these abuses by


challenging the profit structure and commercial premise of the tourism industry.
Alternative Tourism works to redefine tourism back to its original spirit of
exchange and solidarity among peoples. This is a niche market. The evolution
of tourism industry has been anxious, and to a large scale been dictated by the
fluctuations in the socio-economic and political landscape of the world. Mass-
consumerism and mass-tourism have slowly been giving way to the personalized
and custom service offerings. Tourism industry has witnessed radical changes
in the travel preferences as well as customer expectations. Niche tourism, as it
is recognized now has been embraced by both the travel operators and travelers
alike, and is gradually being accepted as part of the mainstream tourism.

Digital and e - marketing tools and methodologies provide a perfect foil for this
emerging and productive segment. Cultural tours, Wine tours, Tea tours, Coffee
tours, architectural wonder travels, forest tours – are just some of the flavours
of niche tourism. A sustained online marketing campaign is capable of creating
an unprecedented visibility for these travel treasure troves. Ecotourism – Hot
Spring tours – Adventure and heritage site travel – Rainforest and backwater
travel – Agri-tourism are….just some of the niche tourism concepts which are
considered as alternative tourism.

Tourism which does not damage the culture and social values of the host

8
community is often called alternative; more than that, alternative tourism may
actively try to encourage a respect for the cultural realities encountered by the
tourists through education and organized “encounters” (de Kadt, 1990).

My professional definition for alternative tourism is “every kind of tourism,


other than mass tourism, which respects and conserves the socio cultural values
of communities and helps to improve their economic standards”. Therefore,
“sex tourism” and “gambling tourism” are of course, not included in alternative
tourism. The reason is that both types of tourism neither carry good values to
the community nor its environment.

It is true that there are several constraints of alternative tourism. Alternative


tourism in developing countries has been much more limited and less successful
than mass tourism due to a variety of reasons. The alternative tourism projects
in developing countries are frequently handicapped by the cost of international
travel in the first place and poor local connections within destinations in the
second. Differences in culture and standards of living between hosts and guests
are also considered constraints.

Having mentioned about the constraints of alternative tourism, it is necessary


to ask therefore, “Why should we promote alternative forms of tourism”?
The answer would appear to lie in an assumption that the alternative forms of
tourism and tourists will have fewer and lesser negative effects on destination
areas and their populations without diminishing the positive economic effects
to, achieving the best of all worlds (Smith & Eadington, 1992).

I believe that both mass tourism and alternative tourism are needed in the
development of tourism in any part of the world. However, there is a big
potential to develop the alternative type of tourism in most of the countries and
it helps to filter economic benefits of tourism to the economically handicapped
communities.

Agri Tourism as an alternative tourism

Some experts in tourism refer alternative tourism as “special interest tourism”


or “responsible tourism.” It is usually taken to mean alternative forms of tourism
which give emphasis on the contact and understanding of the inhabitants’ way
of living and the local natural environment (Smith &Eadington, 1992). As to
the specific forms of alternative tourism, Mieczkowski (1995) identifies such
forms as cultural, educational, scientific, adventure, agri, with rural, ranch and
farm subsets.

9
Rural tourism differs from agri-tourism in two ways. First, rural tourism
enterprises do not necessarily occur on a farm or ranch, or at an agricultural
plant and they do not generate supplemental income for the agricultural
enterprise. Second, it covers the wider arena, which includes features of various
subsectors of alternative tourism such as heritage tourism, wildlife tourism, and
indigenous community tourism including agri tourism.

Therefore, agri tourism is a type of alternative tourism. It has almost all the
characteristics of alternative tourism, which respects and conserves the social-
cultural values of communities and helps to improve their economic standards.

Tourism has various forms. They are categorized as mass tourism (traveling
with a group and passive form of relaxing) and mild tourism (individual,
spontaneous, active form of relaxing). Agri tourism represents the second
model which is mild tourism.

Following features of agri tourism can be used to distinguish agri tourism from
mass tourism.

► Tourist resting place – it is a farm where the tourist gets to know and
feel the rhythm of rural life, contact with domestic animals, fresh food,
colourful landscapes, the sounds of birds and nature, the smell of non-
polluted environment.
► People associate – the direct contact with a farm family, experiencing
the customs of a farm family, hospitability, making contacts with
neighbouring farmers.
► Lifestyle– experiencing the rural lifestyle, understanding the needs
and daily tasks of farmers, getting to know and experience the culture,
customs and traditions of the rural area, history of the country and of
the region, folklore.
► Relaxing – contact and feel with nature, the freedom in moving around,
silence, the possibility of pursuing sports and possibility of recreation.
This form of tourism mostly includes recreational activities connected with the
nature, with hiking, health tourism, sightseeing tourism, culture tourism and
eco-tourism. Actually the agri tourism has some connection with agriculture,
breeding, fishing, gardening and most often with active farm. The remaining
forms should be called rural tourism or tourism in the rural regions.

Considering the emergence of new forms of contemporary alternative type of


tourism that have been initiated in the past couple of decades, agri tourism
clearly shows the features of alternative tourism. Agri tourism generates a

10
significant contribution to the rural development process in rural areas and
does indeed do so in many cases. The contributions could be in the forms of
direct income increase in the farms and creating job opportunities, economic
exchange between rural and urban areas, multiplier effects particularly for
small-scale direct investments, strengthening local and regional structures by
creating networks among the parties involved in tourism, improving physical
infrastructure, increasing the diversity of economic activities, and raising
awareness of the value of an area, such as its landscape, nature and culture, and
the economic potentials.

Formerly, agri tourism was recognized as a part of ecotourism because both


have similar principles to conduct nature attractions (Rilla, 1999). In this case,
both history of agri tourism and history of eco-tourism have similarities. Agri
tourism started as a type of rural tourism and eco-tourism. In addition, both
have been identified as the fastest tourism development models in the world,
and get very serious responses. They have been widely developed in developing
countries as a potential development model as a natural resource and support of
local society economically (OTA, 1992).

Considering the level of contribution of agri tourism upon the development of


tourism sector and improving social, economic and environmental situations of
local communities, it is proven by most of the cases that agri tourism is a better
option of alternative tourism.

Description of Agri Tourism

Agri-tourism is the practice of attracting visitors to an area used basically for


agricultural purposes. It attracts tourists to rural communities for a form of
relaxation that follows the growing trend of tourism that is both educational
and recreational. It is also another option for farmers/entrepreneurs wanting to
diversify their farming / hospitality operations that will bring more economic
activities to rural areas. Generally, the image of tourism stimulates of mass-
produced travel that attracts a large number of travelers. This image of mass
tourism may discourage small entrepreneurs who consider tourism as an
alternative option for enhancing their revenues. However, agri-tourism can be
viewed as small-scale, low-impact, education focused and recreational.

Further, Agri tourism is a direct marketing activity which provides additional


opportunities to farmers to reduce risks involved in farming via diversification
in a competing and urbanizing economic environment.

Farm or ranch recreation refers to activities conducted on state, private or


cooperative owned agricultural lands, which might include farm stays in farm

11
houses, working farms for pleasure, camping, fishing, educational activities,
etc. Agri tourism is a subset of a larger industry of tourism. Agri-tourism is
“a commercial enterprise on a working farm, ranch, or agricultural plant
conducted for the enjoyment of visitors that generates supplemental income
for the owner.”

Agri tourism enterprises might include outdoor recreation (fishing, hunting,


wildlife study, horseback or pony back riding), educational experiences
(cannery tours, cooking classes or wine tasting), entertainment (harvesting
festivals, camping), hospitality services (farm stays, guided tours, catering) and
on-farm direct sales (u-pick operations or roadside stands).

Agri tourism is a subset of a larger industry called rural tourism that includes
resorts, off-site farmers’ markets, non-profit agricultural tours, and other
leisure and hospitality businesses that attract visitors to the countryside. It is
a hybrid concept that merges elements of two complex industries—agriculture
and travel/tourism—to open up new profitable markets for farm products and
services and provide travel experiences for a large regional market. Although a
single definition of agri tourism is not widely recognized, it is at the intersection
of a number of important marketing and economic development concepts that
are circulating today.

Agri tourism is a part of rural tourism activities. It allows visitors to gain the
knowledge of agriculture and appreciate the unique rural landscapes (Hall
and Jenkins, 1998).Currently, agri tourism is experienced widely in terms of
a strategy for the conservation of agricultural resources (Ceballos-Lascurain,
1996) and the allocation of economic and social benefits to the farming
community (Hron and Srnec, 2004). For instance, agri tourism in Italy conducts
the agricultural and environmental education activities to protect the protected
areas from unacceptable agricultural expansion (Scialabba and Williamson,
2004). Therefore, it has a relationship to eco-tourism too. This is justified by
the concept of agri tourism promotion that leads to fulfilling the expectations
on tourists’ increase of knowledge and comprehension in environmental
conservation and agricultural residents’ quality of life improvement, especially
in developing countries where agriculture is still an important strategy in rural
development (Akpinar et al., 2005).

Agri tourism can be viewed as an integrated system of activities that takes place
in rural areas, activities that are in relationships of independence and a fruitful
industry that is directed towards their final goal of regional rural development.
Thus defined, the agri touristic activity can be a tool for measuring the quality
of life, the quantification of the standard of living of certain social groups

12
(Degan, 2011). Finally, through agri tourism, famers as well as small and
medium entrepreneurs (SMEs) in farming drive to increase their income and
share the development of farming especially with habitants in the area and other
stakeholders in the business.

Experts in agri tourism may not agree on a single or a unique definition for
Agri tourism. For example, rural tourism is an all-inclusive idea that places any
tourism activity in a rural setting under the same umbrella definition (fishing,
hunting, eco-tours, hiking, bird watching, etc.). Therefore, rural tourism may
not be designed to generate a supplemental income for the farmer, but may be
a business venture of travel and tourism professionals.

Farm tourism as a type of agri tourism can be associated directly with agricultural
activities on a farm with the idea of offering products for sale that are produced
as a direct result of the activity. This may include food and lodging as well as on
farm activities. Farm tourism could be actually participating in the agricultural
work, farm craft workshops, traditional cooking workshops, or other farm
related educational workshops, with tourism being an adjunct activity.

Most definitions of agri tourism have a common theme that combines elements
of farm life and elements of the tourism industry. The objective of agri tourism
involves having members of the public come to the farm, with the ultimate goal
being to increase farm income by providing fee-based recreation and education
to the clients. With proper planning and execution, agri tourism is a tool that
can have a direct effect on farm income.

Agri tourism is a subset of a larger industry called rural tourism that includes
resorts, off-site farmers’ markets, non-profit agricultural tours, and other leisure
and hospitality businesses that attract visitors to the countryside. It is a hybrid
concept that merges elements of two complex industries—agriculture and
travel/tourism—to open up new profitable markets for farm products and
services and provide travel experiences for a large regional market. Although a
single definition for agri tourism is not widely recognized, it is at the intersection
of a number of important marketing and economic development concepts that
are circulating today.

Agri tourism enterprises might include outdoor recreation (fishing, hunting,


wildlife study, horseback or pony back riding), educational experiences
(cannery tours, cooking classes or wine tasting), entertainment (harvesting
festivals, camping), hospitality services (farm stays, guided tours, catering) and
on-farm direct sales (u-pick operations or roadside stands). It can be viewed as
an integrated system of activities that takes place in rural areas, activities that are
in relationships of independence and a fruitful industry that is directed towards

13
their final goal of regional rural development. Thus defined, the agri touristic
activity can be a tool for measuring the quality of life, the quantification of the
standard of living of certain social groups (Degan, 2011).

Definitions of Agri Tourism

The term ‘Agri” derives from Latin term ager which means ‘field’. Combination
of the prefix ‘agri’ with ‘tourism’ gives the meaning of field or farm tourism.
That means tourism based on farms or spending the vacation on farms. Agri
tourism is defined as “any business or activity that invites visitors to come to
a farm or ranch to enjoy agriculture and farming experiences and the natural
resources (Kuhen et al., 1998).

Another definition given for agri tourism is below. “Agri tourism is a direct
marketing activity that may provide special opportunities to farmers to reduce
risks via diversification in a competing and urbanizing economic environment”
(Brumfiled and Mafoua, 2002). Agri tourism is not a service provided only
by farmers. There are different types of agri tourism and it may vary from
supplementary income source for farming family to complete tourism business.
In early days agri tourism has been introduced as a supplementary income
source for the farm and farmers as they may use their existing facilities to cater
to the visitors who come to the farm for leisure, for having fun and rest, and to
spend their holidays. It was a part and partial business of the farm. Gradually,
agri tourism has being grown over the past couple of decades and reached the
current status as a real farm business.

There are a number of definitions given for agri tourism by different researchers
and scholars.

“Agri tourism is a business conducted by a farmer or rancher for the employment


or education of the public, to promote the products of the farm and generate
additional farm income” (Keith et al., 2003)

“Agri tourism is an activity that involves in having tourist clientele to visit any
agricultural operation for the purpose of experiencing, leisure, enjoyments and
educational opportunities” (Lobo et al , 2003)

“Agri tourism is a commercial enterprise at a working farm, ranch or agricultural


plant conducted for the enjoyment of visitors that generates supplemental
income for the owner” (Bernardo, Valentin and Leathman, 2007)

“Any business conducted by a farmer for the pleasure or learning of public,


to endorse products of the farm and to produce supplementary farm income”
(Hichely, 1993)
14
“Direct marketing action, that may offer special opportunities to growers to
diminish risks via diversification in a rival and urbanizing economic environment,
which may share quasi-fixed inputs (e.g. information, machinery, labor, etc.)
with other enterprises and enhance business efficiency and productivity “(
Brumfield and Mafoua , 2002)

“Rural enterprises which incorporate both a working farm environment and a


marketable tourism factor” (Weaver & Fennell, 1997)

“An activity, enterprise or business which combines primary elements and


characteristics of agriculture and tourism and provides an experience for visitors
which stimulates economic activity and impacts both farm and community
income” (Bruch, 2008)

“Agri tourism refers to an enterprise of a working ranch, farm or agricultural


plant conducted for the enjoyment of the visitors that generate income for
the owner. It refers to the act of visiting a working farm or any horticultural
or agricultural operation for the purpose of enjoyment, education or active
involvement in the activities of the farm that also adds to the economic viability
of site” (American Farm Bureau Federation , 2004)

“Agri tourism can be explained as an interactive activity among agricultural


producers, visitors, agricultural products and facilities of agricultural producers
for the benefit of both groups” (Malkanthi, 2012)

All the above given definitions are correct and looked from different angles of
agri tourism. However, agri tourism is still in early stages of development, it is
difficult to have a commonly accepted definition.

Agri tourism is a hybrid concept that merges elements of two complex


industries—agriculture and tourism—to open up new profitable markets for
farm products and services and provide travel experiences for a large regional
market. Although a single definition of agri tourism is not widely recognized,
it is at the intersection of a number of important marketing and economic
development concepts that are circulating today.

Farm/ranch recreation refers to activities conducted on mainly in agricultural


lands, which might include farming experiences, different types of therapies,
fishing, overnight stays, educational activities, sightseeing, relaxing, tasting
rural and local food, etc. Therefore, agri tourism can be defined as below.

15
“Agri tourism is a commercial enterprise or a farm business at a working
farm, ranch, or agricultural field conducted for the enjoyment and recreation
of visitors that generates income for the owner in microeconomic concept and
contribute to the increase of GDP of the country in macroeconomic concept.”

Agri tourism enterprises might include:

► Outdoor recreation (fishing, hunting, wildlife study, horseback / pony


back riding).
► Educational experiences (nursery preparation and management,
cooking experiences, tea/ wine tasting,).
► Entertainment (harvesting festivals, Open BBQ).
► Hospitality services (farm stays, guided tours or restaurant services).
► On-farm direct sales (u-pick operations or roadside stands).
Agri Tourism as a niche market

Niche markets consist of groups of consumers (market segments) within the


larger marketplace who have similar demographic, buying behavior, and/
or lifestyle characteristics. Examples include food buyers who prioritize
quality assurances and source of production, and consumers who seek an easy
preparation entrée available in a convenient form. Even consumers with the
same buying behavior may have differing motivations (which are essential
elements to know for marketing and promotion). For example, organic
consumers used to be identified by their concern for their environment, but
now there are entirely different segments of consumers who buy organic food
because they perceive those foods as more hygienic considering the free of
poisoned chemicals. Understanding target consumer segments is a crucial
factor in determining whether an operation has the resources, interests, and
business elements necessary to meet the needs of prospective customers.

Niche tourist market opportunities: “for rural & mountainous destinations,


special interest-based niche markets - e.g. visitors with a quite intense personal
interest in horticulture therapy experiences, tea, hiking, local food tasting,
fishing, nature visits, camping, spas, or relaxing in the farming environment.
These are very successful market segments only if their specific interests and
needs are thoroughly understood and correctly targeted in an efficient  way.
Niche markets area is ideal with desirable and creatively developed products,
facilities, services, trails, itineraries, and mainly targeting visitors’ pleasure to
appeal their options.” 

16
Earlier it was considered that niche markets are more suitable for small and
medium business sectors. Nevertheless today most of the big and multinational
companies also develop products and services aiming niche markets. Essential
elements of the niche market that should be identified by the business sector
are given below.

► Identifying specific target segment of customers (Eg. Tourists who


have special fond of agri tourism)
► Unique features of the target segment of the market
► Likes and interests of the target segment of customers
► Opportunities that can be created for the attraction of the market
Niche market is a segment of the mass scale market. Therefore, agri tourism is
a segment of the mass scale tourism sector. Mass scale tourism is a mass scale
market and there are a number of niche markets within this mass sector of
tourism. Why does it is need to consider segment of markets?

► Some segments have better prospects than others


► Some segments can clearly be matched with your products or services
► Some segments like to maintain relationships with your products or
services
► Some segments are more profitable than others
Ecotourism, adventure tourism, heritage tourism and agri-tourism are some of
the niche tourism concepts. There are very interesting experiences in Scotland,
Ireland, and England on niche tourism programs, which have made a significant
contribution to their economy and which are sponsored and supported by the
government. In United Kingdom, as early as 1999, the Department of Culture,
Media and Sports identified niche tourism as an important market and a big
catalyst for the tourism industry. The niche tourism stream common in these
three countries are – Golf tours, Genealogy trips, Whisky tours, and Wildlife
and Field sports.

Uniqueness of Agri Tourism

It is important to discuss the exclusivity or distinctiveness of the agri tourism as


a human activity. First, agri tourism became popular among the people who had
their roots in rural areas and due to various reasons have migrated to urban and
semi urban areas. Even though they start to live in urban and semi urban areas
they never forget their origin in rural areas. Still they love those experiences
and the main factor is that they want to give those experiences to their children

17
and grandchildren. Therefore, those people who had uprooted their origins of
rurality want to experience it with their children.

The second exclusive character of agri tourism is “do something” in the farm.
This means one of the objectives of agri tourists visits is to work in the farm and
involve in the farm production process. It is interesting to note that interesting
is that they are charged to give these experience of farm production by the
operators.

The third exclusive character of agri tourism is visitors’ willingness to live with
farm family and experience farmer’s life. However, tourists can experience
farmer’s life style if the agri tourism farm is operated by the farmer family and
visitors reside in the same house. If the visitors stay in outside cabanas or villas
they may not be able to experience famer’s life style.

Forthly, visitors expect to have naturally produced food and drink pure water
from the farm. What is this naturally produced food? It can be organic food
or food prepared from naturally grown plants and trees. Fresh water fish from
a natural river or pond is natural food. Food prepared from jack fruit, bread
fruit, wild plants or wild animals are natural food. Organically grown grains,
vegetables, fruits and other crops are sources to prepare natural food.

The fifth exclusive character of agri tourism is people’s cognitive need of


relaxing at the farm environment. However, a limited number of people have
this need and they are ready to pay any amount to get satisfied with their need.
Relaxing at a farm is completely different to relaxing in a conventional hotel or
a home stay. At the farm, the visitor enjoys the green environment, the contact
with farm animals, odour of these animals, fresh healthy food, local cuisine,
hospitality of the farmer and his family, fresh air, calmness of the rurality, and
farm house environment. Nevertheless, do all the visitors come to relax at a
farm house or farm villa like to experience simple lifestyle of a farm? There
may be few visitors who like to sleep in a ban. Majority of these visitors of
urban lifestyle like to have their bed room and wash room/ bathroom with toilet
with certain comfortable standards. While agri tourism enterprise is a business
venture, owners of agri tourism farm with farm stay must think about these
requirements of the agri tourists.

Agri tourism is a course that is taught in a number of universities in the world.


Some universities in North America have separate academic departments
for agri or agri tourism. It is a vast developed subject in these universities.
This course is taught mainly in tourism or agriculture departments/ faculties.
However, in some universities it is taught in the departments of economics,
rural sociology, or related fields of study. However, the author of this book has
introduced agri tourism as a course unit at the Department of Agri Business
18
Management in the Faculty of Agricultural Sciences with a teaching farm stay
which is operated commercially.

Agri Tourism as an agri business

Agri-tourism attracts tourists to rural communities for a form of relaxation that


follows the growing trend of tourism that is both educational and recreational.
It is another option for farmers wanting to diversify their farming operations
that will help bring more economic activity to rural areas. Agri-tourism is
an economic activity that occurs when agricultural products or services are
provided to the tourists. However, entrepreneurs will have to carefully research
and assess their situation with regard to location, human resources, marketing
and facilities both internal and external, before starting an agri tourism farm as
an agri business enterprise

Agri tourism is an economic and business activity which provides services


and agricultural products to the visitors on a profit. With increasing cost of
production of agriculture and tighter margins sometimes with excessive loses,
farmers are seeking new ways to diversify and add value to their agricultural
operations. They need to be able to better utilize their human, finanacial and
physical resource bases to be more competitive and profitable. Therefore,
farmers have to look for new business opportunities other than traditional
farming operations. However, their main income source is agriculture and new
business opportunities should be something that can be coupled with agriculture.
Hence, agri tourism is a hybrid of agriculture and tourism and farmers may able
to practice it as a new business opportunity that gives economic benefits.

On the other way, rural tourism operators who have an existing farm or a
cultivable land may practice agri tourism as a new business opportunity.
Therefore, agri tourism can be operated as a business activity both by farmers
and rural tourism operators. Whatever the form of operation and whoever
the operator, agri tourism is an agri business. Agribusiness is defined as “the
totality of all operations involved in the manufacturing of farm supplies,
production, operations on the farm, as well as processing and distribution of
farm commodities and items made from them” (Oliver, 2000)

Accordingly, there is a growing interest in Agri Business Profile on agri tourism


It not only can help increase farm income, but also can promote and serve as a
sales outlet for both raw and value added agricultural products. Both agriculture
and tourism industries get benefits by developing agri tourism as a business.
Agri tourism as an agri business includes farm bed and breakfasts, roadside
markets, farm restaurants, petting zoos, fee fishing, pony or horseback riding
farm museums and a number of other agri tourism products.

19
For rural communities who are trying to diversify their economies, agri-
tourism offers an alternative that allows a large financial range for capital
outlay, depending on how much the entrepreneur wants to invest. Agri-tourism
enterprises create employment opportunities for family members, neighbours,
skilled youth, and supplement the farm income. One of the most rewarding
aspects of agri tourism for many farmers is the opportunity to provide the
public with a better understanding of what agriculture is really about. It is also
an opportunity to enhance the community’s economic potential. It enhances the
agri business profile of agri tourism as a profitable entity.

Agri tourism can provide many benefits to the agricultural producer as an agri
business entity. . It can provide:

► Cash flow during the off season.


► Opportunity to sell the “experience” of agri tourism farm.
► Opportunity to sell products grown and harvested in the farm.
Anyone planning to start an agri tourism project should look at this as a
BUSINESS OPERATION. First, the entrepreneur must decide the type of agri
tourism business plan to operate.

► Supplementary enterprise

In a supplementary enterprise, agri tourism could be a minor activity that would


support the other products on the farm. For example, if the primary enterprise
is horticulture production, farm tours with market outlet can be introduced as
agri tourism operations. The main income is expected from farming and it is
supplemented by agri tourism activities.

► Complementary enterprise
In a complementary enterprise, agri tourism activities have an equal share with
the farm production mix. For instance, if the farm is an orchard of mango,
guava, papaya and other fruits farmer sells the majority of the production to
whole sellers and simultaneously operates a fruit juice and fresh fruit stall at
the farm gate for visitors to the farm. The owner allows “U pick up” operation
too. The income from both operations would be complementary and consider
as complementary enterprises.

► Primary enterprise
In the primary enterprise, agri tourism would be the major activity in the farm.
For example, a farmer wants to operate Bed & Breakfast at the farm with a

20
number of cottages including one or two tree houses and operate farm tours
charging an entrance fee as his main business. At the same time he maintains a
high quality model farm with all the necessary components. However, he does
not expect a higher income from the farm. Here agri tourism is the main part of
the farm product mix and it becomes the primary enterprise (Malkanthi, 2012,
Bernardo, Valentin and Leatherman, 2007; Blacka, et al., 2001).

Impact of agri tourism in sustainable rural environment and development

What is the impact of agri tourism in sustainable rural environment and


development? The impact can be categorised as Economic Impact, Socio/
Cultural Impact and Natural Environment Impact. According to Harro Bockhold
of Contour Projects Ltd, the impact of tourism on sustainability of environment
and development is mainly depending on above three groups of factors. Impact
of agri tourism on sustainable rural environment and development is focused on
these three groups of factors too.

What is sustainable development?

More than one hundred definitions of sustainable development exist, but the
most widely used one is from the World Commission on Environment and
Development, presented in 1987.  It states that sustainable development is
“development that meets the needs of present generation without sacrificing
the ability to meet the needs of future generations”.

Sustainable development promotes the idea that socio cultural, environmental,


and economic progress is all attainable within the limits of our earth’s natural
resources.  Sustainable development approaches everything in the world as
being connected through space, time and quality of life.

The principle of sustainable development has been applied to tourism.


Sustainable tourism therefore seeks to sustain the quantity, quality and
productivity of both human and natural resource systems over time, while
respecting and accommodating the dynamics of such systems (Reid, 1991).
Therefore, sustainable tourism is also developed and managed together with
the principles of sustainable development. These principles of sustainable
development are based on the theory of carrying capacity (Butler et al., 1998).
Although it is an ecology term, carrying capacity has been applied to humans
and, more specifically to tourists. It has been defined for this purpose as “the
maximum number of people who can use a site without an unacceptable
alteration in the physical environment and without an unacceptable decline in
the quality of the experience gained by visitors” (Mathieson and Wall, 1982,).
This definition says that tourism carrying capacity is concerned with only two

21
components, the quality of the environment and the quality of the recreation
experience (Richards and Hall, 2000). This clearly explains the importance of
fulfilling the tourists’ needs within the limitations of consuming the available
natural recourses with higher responsibility. Sustainable tourism needs to fulfil
requirements the protection of natural environment while satisfying the needs
and expectations of tourists with the highest possible levels.

Pritchard (1992), in clarifying their understanding of carrying capacity, add


to Mathieson’s and Wall’s definition by stating that carrying capacity is also
concerned with the social and psychological capacity of the physical setting to
support tourist activity and development. It should be also include the ability of
the local community, economy and culture to support tourist activity.

Figure 1.1: Impact of Agri Tourism in Sustainable Rural Development

Sustainable tourism or responsible tourism is an upcoming and very essential


form of tourism. It delimits from mass tourism, trying to fulfill the tourists’
needs without affecting the destinations negatively. The protection of the local
culture and environment is of top priority.

The main principles of Sustainable Tourism comprise of:

► Respect to local culture and natural environment


► Active contribution to local economy (buy local products, returns for
locals)
► Appreciation of water and electricity as not resources given everywhere
► Help to protect endangered wildlife
► Protection and enhancement of all the favorite destinations for now
and for the future

22
► Reaching balance of economic, social and environmental impacts
- taking over responsibility of actions without sustaining losses of
pleasure for customers
► Minimizing negative impacts of tourism on environment, using a part
of the revenues from tourism to support a destination in any ways 
Overall, sustainable tourism seeks to build a tourism industry which is beneficial
for both locals and visitors and to create a better holiday experience for those
two parties.

Developing sustainable tourism has become imperative in many ways. It is one


which tries to restrict the causes of harm to the surroundings or the environment,
without affecting the culture of the place and increase the economy of the area/
country. Sustainable tourism is to be established with the objective of improving
the good experience in the meantime of tourism both for the local people and
also for the visitors. There will not be any particular increase or decrease in
the growth of the profit that can be made from the tourism, as of in making the
profit activities from the tours and travels, there may be some specific places
which will be visited only in certain seasons where the economy will be high
during those seasons.

Agri tourism is identified as a better method of sustainable rural tourism


considering its nature and ways of operations. Agri tourism which is mainly on
farm and farmer based activity has to consider the main principles of sustainable
tourism and ,

► Must practice a nature loving farming system such as organic farming,


traditional farming, green agriculture, etc
► Minimize the use of non-renewable resources such as main grid
electricity, water, etc
► Contribute to uplifting of local peoples well being
► Protection of the farm land from soil degradation
► Use farming methods as organic farming to balance the natural
environment in the farm
► Create learning opportunities especially for visitors in sustainable
farming
► Practice healthy, environment protection and economically sound
inputs and cultural methods in farming
► Invest part of revenue for natural environment protection and social

23
enhancement of the local people
Here we will discuss socio cultural, economic and environmental impact of agri
tourism on rural environment and development.
Social and cultural impact

The most influential statement on the social and cultural impacts is Bouqeut
and Winter’s (1987) diverse anthology of studies on the conflict and political
debates associated with rural and agri tourism. They consider the relationship
between tourism, politics and the issue of policies to control and direct tourism
and recreation in the countryside in the postwar period after the World War II.
In Europe after the World War II governments encouraged urban people to visit
farms in rural areas and stay with farmers to exchange their social experiences
and economic benefits. In contrast, Neate (1987) considers agri tourism in
relation to attempts to diversify the economic base of farmers in the climate of
declining profitability in agriculture.

Vincent (1987) argues that rural tourism development requires that close-knit
communities adapt to the incursion of capitalism in the expansion of tourism,
where family independence, traditional values and cultural traditions may
be adversely affected. The role of women in rural tourism has also belatedly
attracted interest as a highly seasonal and unstable economic activity, since
tourism is one of the few opportunities taken up by women but also contributes
to the marginal status of women in the rural workforce.

Increasingly, native people are becoming involved in tourism to help meeting


their own goals of independence and cultural survival, yet tourism development
carries specials risks for them. There are also special problems related to
obtaining financing for projects, training with cultural sensitivity, attitudes
towards work and service, and making decisions communally (Smith, 1997).

In communities with low economic activity and low tourism development there
will be high hopes and expectations for tourism.

Economic impact

The economic impact of rural tourism has been a fruitful area for research
among a range of social scientists, often emphasizing or challenging the role
of tourism as a solution for most of the economic and social problems of the
countryside. But Butler and Clark rightly acknowledge, tourism in rural areas is
not necessarily the magic solution to rural development, given its:

“Income leakages, volatility, declining multiplier, low pay, imported labor

24
and the conservatism of investors. The least favored circumstance in which to
promote tourism is when the rural economy is already weak, since tourism will
create highly unbalanced income and employment distributions. It is a better
supplement for a thriving and diverse economy than as a mainstay of rural
development“(Butler and Clark, 1992)

Environmental impact

In a rural context, the growing pressure emerging from the development-intensive


nature of tourism and the expansion of mass tourism have posed many new
pressures as “new tourism” that discovers the qualities of rural environments.
In fact, the construction of theme parks in rural environments, home stays,
timeshare, conference centers and holiday villages have all contributed to the
insatiable tourism appetite for rural environments (Gartner, 1987).

A number of recent special issues of journals have also focused on sustainability


and rural tourism. However, it is apparent that tourism in rural context displays
many of the features of the symbolic relationship, which exists between tourism
and the environment. For these reasons it is appropriate to consider the tourism
resource base, emphasizing supply and demand features in relation to the
business aspects of rural tourism (Page and Getz, 1997).

25
Chapter Two
Agri Tourist

Who is a tourist?

A ccording to the common acceptable definition a tourist is “a person who


travels away from home for leisure, business or other purposes for longer
than a day (more than 24 hours) but less than a year. It is important that a tourist
must stay an overnight at the place he/she visits. If he/she does not fulfil these
requirements he/she becomes an excursionist. An excursionist is a person who
arrives at the destination and departs on the same day.”

Another definition of tourist according to World Tourism Organization is “


a person who is supposed to leave his/her hometown (permanent place) on
temporary basis for the purpose of seeking new experiences, having fun &
entertaining, doing sports, seeing cultural & historical places (attractives) etc,
on the condition that he/she should stay not less than 1 day (including a night)
and no longer than 12 months, makes use of a tourist facility for accommodation
and spend his/her own money through the holiday”. This definition is more
comprehensive and descriptive.

There are two types of tourists according to the originality of a tourist. They
are domestic (local) tourist and international tourist. Who is a domestic tourist?
Domestic tourist is a person who travel within his/ her own country outside his/
her usual residence for a period not less than one day (including a night) and
not exceeding 12 months seeking new experiences, having fun & entertaining,
doing sports, seeing cultural & historical places (attractives) etc. Considering
this definition, majority of local travellers are not tourists, but excursionists.
Usually, they go for a day visit. Nevertheless both type of travellers, tourists
and excursionists are very vital to sustain the tourism industry. They are the
key group in the tourism industry who contribute financially to continue it. The
statistics show that in tourism industry, the number of local tourists is higher
than international tourists.

An international Tourist is a person who travels to a country other than that in


which he/she has his/her usual residence but outside his/her usual environment
for a period not less than one day (including a night) and not exceeding 12
months and whose main purpose of visit is other than the exercise of an activity
remunerated from with the country visited, and who stay at least one night in a
collective or private accommodation in the country visited. Mainly international
travellers fall into the tourist category. The majority of them stays more than

26
one night at their international destinations. However, there are examples
for excursionists among international travellers. For an example, people in
Malaysia travel to Singapore for one day shopping. They do shopping, dining
and site seeing and return in the evening. They are excursionists.

According to the current accepted definition of a “tourist” the characteristics of


a tourist can be listed as follows.

► A person who is leaving his permanent residence on temporary basis


► His/ her travel has a specific purpose ( objective) such as seeking new
experiences, having fun & entertainment, doing sports, seeing cultural
& historical places, exploring nature and environment, short term
study programme, attending for conferences, seminars, or workshops,
attending for business activities, meeting people, etc.
► There is a time frame for his / her stay; a period not less than one day
( including a night) and not exceeding 12 months
► Use of a tourist facility for accommodation
► Not accepting any kind of remuneration from the host country/
destination
There may be different type of arguments for this definition and some say it does
not clearly reflect the characteristics of the real tourist. However, we accept this
definition and further descriptions are based on it.

According to the 2015 January edition of the UNWTO World Tourism


Barometer, worldwide international tourist arrivals in 2013 grew at a rate of
5.0%, equivalent to 52 million more arrivals compared to previous year and
a total of 1087 million. Here, it is not expected to talk in length about the
international tourism receipts (earnings), but it has grown by 5 % in real
terms and establishes a new record of US $ 1159 billion worldwide up from
US$ 1078 billion in 2012. This matched the international tourist arrivals and
underscores the strong correlation between the two key measures as indicators
of international tourism trends.

Classification of tourist

Tourists are classified mainly on two bases. They are “on time” and “on reason”.
On time means what is the minimum and maximum time period a person stay
out of his/her normal residence for a purpose of tourism. Therefore day visitors
to any tourist destination are named as “excursionists”. They do not spend an
overnight at this place.

27
Other visitors who spend an overnight at a tourist destination are named as
“tourists”. They come during the day time to the tourist destination and stay at
least one night and leave the next day. They may stay as long as they wish but
less than 365 days.

Tourists can be classified on the basis of reason as leisure/ holiday and business/
volunteering/ research/ pilgrimage/ MICE. Generally, tourists on business/
volunteering/ research/ pilgrimage or MICE organize their tours in advance
themselves or through their company or host organization.

People who travel on leisure or holiday/ vacation may organize their trip
their own or they may contact a travel agent and get a readymade package or
customize package.

Figure 2.1: Classification of Tourist

Some travelers such as backpackers travel without a better plan or direction.


Their destinations are mostly spur-of-the-moment. They are disorganized
travelers. However, according to the definition they are also tourists. There is
an argument about the contribution of this type of tourists to the development
of the tourism industry. Their numbers are high, but contribution to the industry

28
or revenue to the industry is minimal. Reasons for this situation are the buying
power of these backpackers are less and due to this, they always look for cheap
transport modes such as public transport, overland trains, bicycles or on foot.
Their accommodation is youth hostels, resting places at monasteries or temples,
parks, or cheap hotels. They do not spend much for food and satisfy with cheap
local food. Nevertheless, impact of this type of tourists to climatic change
(GHG emissions) are lesser than other rich travelers. Their consumption of
the non-renewable resources is minimal and due to their humble behavior they
rarely involve in GHG emission practices.

A large segment of tourists organize their tours with tour operators. Out bound
and inbound tour operator business is a wider business in the world. Mainly,
outbound tour operators organize tours to other countries as groups and people
get contacts with them and join their readymade tours or customized tours.
These are well planned and tourists know their itinerary beforehand. The
advantage in this type of planned tours is that the tourist can select his/her tour
according his/her wish. These types of tours are expensive than self-planned or
unplanned tours.

Types of tourists

There are different types of tourists according to their needs and reasons for
travelling and can be grouped into six broad categories.

► Leisure, holidays and vacations


► Business
► Meetings, Conferences, Workshops, Trainings
► Visiting friends and relatives
► Educational and Exploration
► Especial interest tourists
These are broader categories and while one person has several needs and
multiple reasons for travel, these categories may overlap sometimes.

Leisure, holidays and vacations

The main objectives of tourists travel for leisure, holidays or vacations are
pleasure, relaxing, comforting, calming and having peace in busy life. They
have their own pace and expenses are from own budget. They like to rest and
relax and have a break from the usual routine life. Examples of this type of
tourism are a cruise on a cruise liner, a trip on a train to Assam hills in India,

29
relaxing on the beach, sport fishing at a lake or river, relaxing at a farm, living
and experiencing rural life, relaxing at a tree house, etc.

People go for holidays alone or as a family or groups. They go for shopping


during holiday travel, visit religious places and visit to watch a favorite cricket,
football or tennis match.

These tourists are sub grouped as religious tourists, agri tourists, sport tourists,
etc. Religious tourists mainly want to see and experience places of religious
importance. There are many religious destinations in the world such as the
Hajj in Mecca, Jerusalem in Israel, Bodh Gaya and Varanasi in India, and the
Vatican in Rome. During Easter the largest Christian pilgrimage to Zion City,
Moria, Limpopo, takes place. More than a million pilgrims travel to Moria to
every Easter. Lots of Buddhists visit Bodh Gaya, Varanasi and other sacred
places of Load Buddha in India and Lumbini in Nepal. In India lots of Hindus
travel as domestic tourists to worship Hindu temples all over the India such as
Thirupathi temple in Andra Pardesh.

Business

Business travel is related to business and the world of work. Businessmen


and company executives travel for business meetings, exhibitions and special
events. These are all part of the business world. All major cities have conference
centres that cater for the needs of business tourists. An example of a business
tourist would be a marketing manager who travels to another city to attend a
trade show and promote the products of his company. These travels are due
to job requirements. They have fixed travel deadlines according to the type of
business. Their expenses are paid by the company.

Meetings, Conferences, Workshops, Trainings

Travelers who visit for attending meetings, conferences, workshops and training
programmes are also considered tourists if they fulfill the basic requirements of
a tourist. Most of these types of tourists are professionals. Organizers, sponsors,
participants and resource persons are in this group of tourists.

Visit Friends and relatives

Tourists visiting friends and relatives want to stay in contact with friends and
relatives and travel away from home to visit them. These tourists may travel to
attend a wedding, funeral, or birthday celebration of friends or relatives or just
to visit them for a vacation

30
Educational and Exploration

Some people travel to participate in short to midterm educational programmes.


Some people go for exploration of environment, nature or historical venues,
etc. As an example natural scientists or environmentalists who visit to explore
Amazon forest or Congo forest are considered as tourists, if they fulfill the
requirements of a tourist. Archeologists visit Egypt to explore its heritage are
also fall to the category of tourists, if they fulfill the requirements of a tourist. .

Especial interest tourists

Especial interest tourists are medical tourists, disaster tourists, slum tourists,
war tourists, etc. Their travel purpose is mainly for a very special reason such as
to get medical treatment for an illness, to see and help for natural or manmade
disaster incidences, to observe slums in mega cities in developing countries and
help the dwellers, to visit war affected areas as journalists or relief workers.

Agri tourists are one type of tourists among the tourists described above.
Generally I would like to categorize them under the “Leisure, holidays and
vacations” and named them as a subsector in this category. Who is an agri
tourist? There are two types of agri- travelers namely, agri- excursionists and
agri tourists.

Definition of an agri tourist

An agri tourist is a traveler who travels away from home to stay at a working
farm, ranch, or agricultural plant for leisure, recreation, entertainment, education
or exploration for longer than a day (more than 24 hours) but less than a year.

An agri excursionist is a person who travels to a working farm, ranch, or


agricultural plant for leisure, recreation, entertainment, education or exploration
for less than a day.

There are travellers who travel to a working farm and stay there in a farm house
or do camping overnight for pleasure, entertainment and leisure. They may stay
one day/ night or more. They will enjoy the farm environment and involve in
activities like fishing, hunting, wildlife study, horseback or pony back riding.
They further get educational experiences such as cannery tours, participating in
cooking classes or wine tasting and entertainment through their involvement in
harvesting festivals and camping.

31
Types of agri tourists

Agri tourists can be segmented considering time of staying in the farm or ranch
and their purpose of visit.

According to Sznajder M et al (2009) there are five types of agri tourists


depending the time of staying at a farm.

a. Momentary agri tourists: They spend a shorter period at a farm around


3-4 hours or half a day. They visit to farm to observe farm work such as
milking, feeding or preparation of nursery beds. However, according to
the definition of a tourist these visitors are not real tourists. They are agri
excursionists.
b. One day agri tourists: They stay a whole day without staying overnight.
They come in the morning and spend the whole day in the farm, involving
in activities in the farm, having meals and snacks at the farm, and buying
farm products before leave. According to the definition of a tourist these
visitors are not real tourists too. They are also agri excursionists.
c. Overnight stay agri tourists: They stay at least an overnight at the farm
with the farm family or outside the farm house.
d. Weekend agri tourists: They come to the farm on a Friday evening or
Saturday Morning and stay whole the weekend at the farm and leave on
Sunday. During the weekend they see the farm, involve in activities in the
farm and at the end buy farm products.
e. Holidaymakers: These are the visitors who come to spend their holidays
at the farm, may be for one week or more. They stay in the farm, take the
meals from the farm or prepare meals themselves, visit other interesting
places around the farm, and spend a whole vacation or part of it at the
farm.
The last three categories are real agri tourists.

According to the main purpose of visit, there are three types of agri tourists.

a. Leisure agri tourists: The main purpose of these tourists to visit farms is
leisure. They like to enjoy the farm environment in most occasions with
their whole family, having pleasure and entertainment. They expect to
relax at the farm, enjoy and experience the farm environment and farm
life. Most of them visit the farm with overnight accommodation and to
enjoy the farm food.

32
These type tourists engage in farm activities too. Their children will involve
in nursery preparation, observe milking, enjoy the petting zoo, and many
more. This is an excellent place for the adults for fishing, horse or pony riding,
attending cookery classes, etc.

People who have roots in rural areas and uprooted due to various reasons and
now become dwellers in urban or suburban areas, wish to visit farms with the
family during the vacations and regain the sweet memories of the past. They
prefer experience to recollect leisure time they had in their early stages of life
again.

Leisure agri tourists are both foreign and domestic visitors. Foreign visitors
expect to experience different cultures of farming communities, geography,
farming methods, rural culture, environment, eco system as patterns of living
differ in different regions of the world.

Domestic visitors are mainly from urban and suburban areas of the country and
they visit farming areas with their families to experience rurality and farming
environment. A large number of this type of agri tourists are from middle and
upper middle social classes. Occupation vice, most of them are medical doctors,
engineers, company executives, university academics, etc. They want to escape
from busy, usual and routine life in cities and feel and enjoy the calm, simple,
and peaceful rural and farm life. It gives them a refreshment to life and both
mental and physical health.

They do not expect a luxury life style in star hotels. Their expectations are
simple but convenient, as they prefer clean and peaceful environment for
accommodation. If they want to exercise a luxury lifestyle they do not come to
a farm to stay and relax. The important point to notice is that these people from
cities visit to a farm during their vacation mainly to enjoy the farm life which is
a novel experience especially for their children.

b. Educational agri tourists: The main objective of these visitors to visit agri
tourist farms is education. Time of stay vice both day visitors and long
term visitors fall into this category. Different profile groups are also in
this category such as school children, farmer groups, government or NGO
officers, etc. These groups may visit for a couple of hours to a couple
of days. I have experienced this type of agri tourists in Philippines. 2-3
groups of visitors come daily to Costales Nature Farms in Laguna, which
is the first registered agri tourism farm in Philippines. These groups are
consisted of students, farmers, government officers or people who wants
to study different farming practices, vermi-compost production, agri

33
tourism, or organic farming. The uniqueness of this farm is, it is a totally
organic farm operated by Costales family. According to statistics, this
farm welcomes around 3000 day visitors per month.
Another farm that I visited organizes 3-4 day workshops for farmers both
domestic and international in organic farming or green agriculture. They have
good facilities for agri tourists in the farm including high quality accommodation,
food and other leisure facilities such as a swimming pool, playing area etc. The
main customer group of these two farms is educational agri tourists.

c. Farm products buyers: The main purpose of visiting to an agri


tourist destination by this type of agri tourists is direct purchasing
of agricultural products of the farm. There are a number of ways of
direct marketing at an agri tourism farm. Some of these types are u
pickups, farm shops at the farm gate, farm restaurants inside the farm,
roadside farmer markets, etc. U pickups are very popular among this
type of visitors. In real term most of these visitors are not tourists.
They are excursionists. In U pickups, visitors pluck vegetables, fruits
or flowers themselves from the trees or plants and pay at the exit point
or cashier. Visitors have freedom to pluck selectively and real farm
fresh products are available at cheaper prices. In some farms, visitors
can eat especially fruits for free of charge in the farm and have to
pay only to the take home volume. Sometimes, visitors have to pay a
nominal entrance fee to avoid wasting of the harvest. These visitors
stay a couple of hours to a day at the farm having lunch at the farm
restaurant. They come as couples or families with children.
There are visitors who come to the farm shop at the farm gate or inside the
farm only to purchase farm products, fruits, vegetables, meat or milk & milk
products as ghee, cheese, butter, yogurt, or curd.

There are agri tourist farms with restaurants in the farm where people visit
there for taking meals at a different atmosphere. They visit to taste specific,
unique menus offered at these restaurants. At such farm restaurants meals are
prepared mainly using farm fresh products and most of these agri tourist farms
are organic farms. Food recipes are both traditional and local. These are the
unique features of these restaurants and visitors’ main aim is to experience this
uniqueness as couples, families or groups of friends/ families.

Characteristics of an agri tourist

Agri tourism is a sub sector of broader tourism industry and it is a niche market.
Therefore, it is important to know the specific features or characteristics of agri

34
tourists especially for agri tourism planners and service providers. What are
these characteristics?

► Common characteristic of an agri tourist is that he/ she likes to stay


on a farm, to observe the production process, to have contact with
farm animals, to feel and experience farming life and to eat farm fresh
products ( Sznajder et al., 2009)
► Agri tourists are willing to have “rural experiences” by paying money
because it is a severe lack of their lives
► They are mainly urban and suburban dwellers.
► They like to visit as families, groups or at least as a couple
► Roots of a large percentage of these tourists are in rural areas and later
they have lost these roots due to different reasons. Now they want to
feel their root life at least for a shorter period and also want to give
experiences of this life to their children who never had it.
► Socio economically most of them are from middle and upper middle
classes who can afford for leisure and relaxation at a farm. They are
wealthy enough to spend for this type of leisure at a farm
► Their expectation is to run away from busy city life for the time being
and to relax at a calm and quite rural environment.
► Agri tourists always like to learn something on farming during their
stay or visit to a farming enterprise.
► They always expect to experience the real farm life but not an artificial
or fabricated one.
► Although they prefer traditional style of life, they are change seekers.
This is the reason they look for certain change in the life by visiting
and staying at a farm.
► Agri tourists are nature lovers and protectors.
Identification of the needs of an agri tourist

Identification of the needs of an agri tourist is very important in planning


and operating an agri tourist enterprise. It can be a farm stay, restaurant at a
farm, petting zoo, farm for tour, u pick up operation, or any type of gri tourist
destination. Agri tourists are coming to your destination because of the specific
features in your agri tourist enterprise which is not available in other places.
This uniqueness is important to attract tourists to your agri tourism enterprise.
If it is an agri tourist farm what could be these unique features?

35
► Type of framing : Organic farming,
► Practice traditional cultivation methods: if there is a paddy land use
traditional methods for land preparation ( with buffalos) , transplanting
of rice with women, manual harvesting and post-harvest operations
with buffaloes and man power, follow rituals of paddy farming
followed by farmers over the years
► Type of cultivation: mixed cropping ( eg: vegetables and fruits
together), individual crops ( tea, cinnamon, banana or coffee) ,
integrated agriculture ( crops and livestock together) , individual
groups of crops ( berries) , home gardens
► Practice traditional and local methods in value addition
► Cultivate local varieties of crops, eg local varieties of paddy which are
rear to find these days
If it is a restaurant at a farm we must consider following features.

► Architecture of the farm restaurant: match to the farm environment,


open with humble looking but clean and tidy.
► Furniture and utensils of the restaurant need to be different from
those at a normal restaurant. Cups, plates, even wash basins can be
traditional or with different types closer to nature. Do not use plastic,
aluminum or synthetic tools and materials. Always use clay, ceramic,
or wooden cups, plates, cooking pots etc.
► Chairs and tables must always be in wooden or natural material.
Always avoid plastic or synthetic material.
► Try to use farm produce for cooking as much as possible. Rest can
be taken from surrounding village farmers or naturally grown things
in the environment. Visitors come to these type of farm restaurants to
taste meals different from restaurants in the cities.
► Use natural cooking methods as much as possible; wood fire or bio gas
► Traditional and local food recipes are highly appreciated by agri
tourists.
According to the literature and personal experience of the author, what are the
needs of agri tourists generally?

► They like to visit a farm well organized, covered with vegetation, where
animals sheds are clean, well maintained and attractive. An agri tourist
farm must be organized well and kept tidy. Agri farm landscaping is a

36
necessity to attract tourists to the farm. It must give a good feeling to
the agri tourists about the farm from the farm gate. They should feel
that they are entering to a real farm and they can experience it. They
must realize that the money they spend is not wasted. The farm should
provide the visitors a real farming environment.
► There must be substantial things to be seen by the visitors in the farm
and in addition around the farm.
► Agri tourists are willing to involve in activities in the farm and around
the farm. U pickups, fishing at a pond, riding, cooking, hiking (if
available), therapies, bird watching are some activities they prefer.
► They like to buy something as souvenirs in their visit and farm products
too. Therefore, it is good to make available souvenirs such as t- shirts,
caps or mugs with the name of the farm stay and its slogan printed on
them, handicrafts of the locals, farm fresh products like vegetables,
fruits, meat, milk, processed or cooked food products at the farm shop
or farm restaurant.
As an agri tourist entrepreneur, you can conduct a study with potential or target
customer population to find out the needs and expectations of agri tourists and
visitors prior to start your business. It must be a part of the planning process of
your business. After commencing the operations, you have to continue to get
feedback about the needs and expectations of the tourists who visit your place.

Today you can use a number of methods and links to do this type of a study.
You can start a face book campaign seeking opinions and ideas about the needs
and expectations at an agri tourist farm. You can search the internet and find
out how similar type of agri tourist farms in the region have responded to the
needs of the agri tourists. Further, you can collect information on agri tourists
needs by direct interviews, postal or e mail campaigns, searching secondary
information sources, discussions with focus groups, etc.

These data and information have to be analyzed to find out conclusions on


needs and expectations of agri tourists at an agri tourist farm or enterprise.

37
Chapter Three
Identifying Agri Tourism

Place of Agri Tourism

I s agri tourism limited only to rural areas or can it be expanded to sub urban
areas? Agri tourism is a type of alternative tourism included in rural tourism
subsector. Agriculture or farming is mainly based in rural areas and therefore
agri tourism is also placed in rural areas. However, it does not restrict any
expansion of agri tourism to other boundaries. In today’s concept agriculture
is expanded to urban and suburban areas and urban agriculture projects are
becoming popular among urban and suburban dwellers. As an example, agri
techno parks that are located in the sub urban areas become popular among
visitors from both rural and urban areas. As an example, Gannoruwa Agri
Techno Park in Sri Lanka maintained by the Department of Agriculture is
located within Kandy city limits.

What are the places of agri tourism?

► Farm Site - is a working farm producing and/or showcasing raw and/


or processed products.
► Day Farm - are farms ideal for day tours/visits usually located near
national highways and main business areas.
► Farm Resort - are farms that offer accommodation and dining services,
for the purpose of participating or enjoying interactively on-farm
activities and other attractions offered to enrich the tourists’ farm life
experience.
► Agri Techo Parks – An agri technology park is an initiative for
agriculture extension, education and agri tourism sectors. They
are more than just a day out and it is strongly focused on the quick
information dissemination mechanism for farmers, school children
and general public. It is also a place to see and learn the latest
recommendations of crop cultivation and technologies generated by
both public (government departments and universities) and private
institutions. It gives not only an education & training mechanism but
also aesthetically beautiful, edible landscaping with tropical crops
which gives peace of mind to the visitors.
However, most of the top agri tourism destinations in the world are in rural areas.
There are top agri tourism destinations in Italy, Thaiwan, Hawai, Mallorca in
Spain, Brazil, Grenada in Caribbean, California in the USA, and Philippines.

38
These are few examples for places of agri tourism.

Agri tourism is one of the fastest growing sectors in the rural tourism industry.
There is nothing new about this form of travel, which involves staying on a farm
or other agriculture-oriented property and perhaps even sampling the day-to-
day lifestyle of the people who tend the crops or livestock there. Tourists have
been staying at Italian vineyards and Rocky Mountain ranches for decades. The
idea of relaxing in a beautiful setting (like the Tuscan farmhouse) or sampling
the adventurous Old West lifestyle is certainly still part of the attraction of agri
tourism. On some farms that welcome tourists, however, the goal is less about
providing a unique vacation and more about fostering a deeper understanding
of the farming process through education and hands-on experience.

Taiwan has numerous “leisure farms” that offer tours of farm fields and facilities
and, of course, plenty of chances to sample the crops. A couple of things make
Taiwan an ideal spot for an in-depth agri tourism vacation. Many smaller farms
offer home-stay accommodations, as opposed to hotel-like rooms. In addition,
the food served and sold is grown locally, so green-minded travelers can easily
support sustainable agriculture and lower their carbon footprint while traveling.
Tea-lovers can embark on a specialized agricultural tour by focusing on the
island’s tea plantations, where some of the world’s most prized leaves are
cultivated.

Tuscany was one of the first regions to become a popular farm-tourism


destination due to its agri tourism atmosphere. These farmhouses, which were
converted into inns, gained notoriety because they offered an authentic and
quaint Italian countryside experience to people who would otherwise have to
see this region as part of a tour group. A few of the estates in Tuscany offer a
more educational focus, but, for the most part, the attraction of staying in a
farmhouse in this region has to do with the opportunity to simply hang around
the property, relax and soak in the unparalleled atmosphere. Of course, part of
agri tourism is tasting local fare, and Tuscany (Italy as a whole, actually) is the
perfect place for this because such a premium is placed on fresh, local food.
Tourists can experiences wine-soaked stay in the Chianti area or a farmhouse
with a restaurant that makes magic with local tomatoes, herbs and cheeses.
Tuscany proves to be one of Europe best agri tourism destinations.

On the popular Spanish island of Mallorca, farmhouse inns focus more on


providing isolation and quietness than offering hands-on farming experiences.
With millions of visitors descending on the beaches of Mallorca and the other
Balearic Islands each summer, a little bit of isolation is a good thing for solitude-
seeking travelers. These inns range from rustic century-old farmhouses to

39
luxury bed-and-breakfasts with spas and swimming pools are mainly located
in the hills of inland Mallorca. Some of Mallorca’s best agri tourists’ sites are
in the middle of orange or fig groves and offer fresh, local food to guests, often
serving dishes made from ingredients grown on-site.

Brazil is a vast country with plenty of natural resources and an exciting,


diverse agricultural industry. From tropical flowers and fruit to beef cattle and
sugarcane, Brazil has retained its farm-based economy despite growing in other
sectors by leaps and bounds over the past few decades. Brazil might be a little
remote for U.S.-based travelers, but flights from hubs like Miami and Houston
put it within reach. People who are seriously interested in agricultural practices
will want to put this vast nation on their to-visit list because of its innovative
and sustainable farming practices, which other countries are scrambling to
learn and imitate.

The Hawaii Agri tourism Association offers resources for tourists who want
to have a tropical farm experience or simply want to learn about and taste the
state’s best farm products. Agri tourism options range from visiting coffee
plantations in the Big Island’s Kona region to exploring the plantations on Maui
to staying on organic farms on the easily reachable island of Oahu. There are
enough farm tour options that people can enjoy a standard Hawaii beach or
adventure vacation and include some agri tourism activities on their itinerary
without having to focus completely on farms.

Grenada is growing as a tourist destination, but it is also suitable for agriculture.


From cocoa plantations to spice farms, this small island nation boasts a wealth
of agri tourism attractions. Nutmeg, mace, cloves, cinnamon and turmeric
are grown in higher quantities here than in almost anywhere in the Western
Hemisphere. One of the Caribbean’s best agri tourism resorts, the Belmont
Estates, is located on Grenada. This three-century-old estate has a thriving
nutmeg and cocoa business. Belmont features an organic farm and a restaurant
that serves traditional Grenadian food made with ingredients grown on-site.
Any tourist who appreciates flavor and spice and who wants to see exotic
edibles at their source should definitely consider Grenada a top choice for a
Caribbean-based farm experience.

California is one of the best places in the U.S. to enjoy a farm-stay, thanks to
the diversity of crops and farms. Many smaller family farms in this West Coast
state rely on agri tourism to supplement their income. Plenty of people know
about staying in the wineries and vineyards of the Central Coast and Sonoma
areas, but  small family farms and large ranches also offer a more hands-on
approach to agri tourism. Many of these places teach small scale farming

40
techniques and even offer strategies for organic growing. The University of
California system, one of the largest state-run higher education systems in the
U.S., has a small-farm program that helps growers create education-oriented
agri tourism businesses.

With diverse conditions on different islands, the Philippines is an ideal place


for visiting multiple agri tourism sites or focusing on a niche product. Tourists
can visit a huge pineapple plantation for a taste of large scale agriculture, or
they could focus on smaller operations, such as orchid farms, bee farms, and
even small plantations that specialize in growing exotic tropical produce such
as dragon fruit or papaya. The government of this beautiful Southeast Asian
island nation is looking to actively bolster what is already a successful niche for
tour companies and farmers. The Costales Nature Farms in Laguna, operated
by Ronald and Jose Costales family is the first approved agri tourism farm in
Philippines.

Types of Agri Tourism

Agri tourism products and services can be divided into different types (Sznajder
and Przezbórska, 2004). Here seven types of agri tourism are considered.

1) Farm accommodation 2) Farm catering 3) Participatory agri tourism 4)


Farm Retailing 5) Therapy at the farm 6) Holidaying in a farm and 7) Farm
entertainment

Farm Accommodation

Farm accommodation service is a type of rural accommodation within the


various kinds of accommodation in rural areas. Homestead accommodation,
country-stays, rural home-stays, and rural bed and breakfast seem to be most
common and most tied with countryside and rurality. The above accommodation
categories are quite specific for agri tourism; however the differences between
them are very slight. Farm Bed and Breakfast usually is a “unique term” for a
variety of hosted accommodation in farms that includes a bed for the night and
a breakfast in the morning. There are also some specific agri tourism forms of
accommodation such as sleeping on the hay, camping barns or bunkhouses.
However, such accommodation services cannot be offered in a mass scale.
Further, farm stays are connected with some threats both for the farm (damages
by the visitors, fire) and for visitors (low sanitary condition, low facilities).

Today it is not true that farm accommodations are cheap. However, staying in
a farm may be an advantage for a visitor. It is a different experience with fresh
food, water and air.

41
Farm B & B (Bed and Breakfast)

What is a Farm B &B?

Bed and breakfast businesses provide lodging, breakfast, and hospitality. These
businesses are found on farms and in rural communities as well as in larger
cities. All are part of a private residence, offer short term overnight stays, include
breakfast in the room charge, and are known for the personal services offered.
Of course, farm vacation homes usually provide additional meals and activities
for guests. Farm B & Bs and farm vacation homes are alternatives to other
commercial forms of lodging in rural areas and many have become attractions
themselves. If you are going to start an agri tourism business you can decide
what the best realistic business option for farm accommodation service in your
farm is; a bed and breakfast or farm vacation home.

Hospitality

The most important service in farm B& B is hospitality. It is intangible and


all the visitors expect the highest hospitality from the host. Some assessment
of personal qualities and entrepreneurial skills is necessary to see if these
businesses are a good match for you and your family. The common factor across
the bed and breakfast industry is hospitality: it is the key ingredient to any
successful guest business. The host must enjoy meeting people and welcoming
them into the farm on a regular basis.

The feeling of welcome goes beyond the shaking of hands, and there is much
host can do to increase it. The hosts should be friendly. It is customary to spend
time with the guests upon arrival and at breakfast. Be prepared to describe points
of interest and activities in the community, the background of the business and
its location, and information about you and your family.

Family inference

To have a successful farm B & B business, it is necessary do a careful assessment


on the impact as it may have on your family - both on living arrangements
and on specific needs of family members. If the answers are favorable to the
following questions, then this family-based farm B & B business may suite you
and your family. It can provide additional income with a new way of life.

► Do you enjoy meeting all types of people? Answer for this question
must be “yes”, if you want to go ahead.
► Would you be comfortable with visitors in your home? If you are not

42
comfortable with visitors in the same house, you can build a cabana or
cottage type outside accommodation for the guests.
► Would you be able to provide enough area to be used for use by family
members and the security of family belongings? This is easier to do in
some houses because of the arrangement of entrances, hallways, and
sleeping rooms. Remodeling or even rearranging furnishings can help
to separate family and business areas.
► Do you have the time to plan and promote this business and still give
time to your family?
► Will you be able to spend substantial time with the guests?
► Will you be able to define the business responsibilities for each family
member? You can even employ neighbour villagers to support you in
areas such as room service, cleaning etc.
Management Policies

When you share your home with guests, you have the right to determine
allowable activities and limits. To avoid misunderstandings, it is a good idea
to state these policies in your brochure and post them in the rooms. If the
accommodation type is cabana or cottage, most of the below given policies
given below can be applied.

Make decisions about the following items:

► Smoking restrictions
► Use of alcoholic beverages ( soft liquor such as beer or vine can be
allowed )
► Whether children or babies are welcome
► Breakfast hours
► Guest areas vs. family space
► How and when bill will be paid
► Use of credit cards
► Whether pets are allowed
► Arrival and departure times

43
How to be Successful with your Farm Accommodation

It is very important to know what the factors are that you have to consider in
operating a successful farm accommodation.

Uniqueness

The host must be careful to identify a unique selling point of the farm stay. Why
guests should visit your farm accommodation, rather than someone else’s?
What do you have to offer them that they can’t get from anywhere else?

The farm bed and breakfast or farm vacation facility can be anything from
contemporary to historic. It does not need to be a mansion. It does not always
have to be old or of historical importance. It should however always be
comfortable, clean, distinctive, and pleasant. Your farm house should be unique
and reflect your family and the people who live there. One of your selling points
is “environment” - the look or feel of your home.

Analyze why you think paying guests would find your farm house a place
where they want to stay. Look at your house and its architecture, furnishings
and consider what may be needed to make them more attractive, and contribute
to the smooth functioning of your business.

You should determine the “viewpoint” that you want to have in your farm house
and in the guest rooms. Analyze the furniture and accessories you have, along
with the style of your farm house and its interior architecture. You have to be
creative and your farm house should reflect your tastes and interests. Personal
items placed in your home and even in the guest rooms are appropriate.

The bedroom needs a bed with a good quality mattress and pillows, bed linen,
clothes hangers, and a towel rack. Include a comfortable table and chair, a
resting chair with light for reading, a mirror, and a nearby outlet for personal
appliances. The room should smell and look fresh and clean. Extras such as a
full length mirror, fresh flowers or plants, recent magazines, a small selection
of books, and a fresh fruit basket will be appreciated.

It is better if separate wash room facilities are provided. Food is a special part
of bed and breakfast and farm vacation homes. It should be memorable. Farm
fresh food with local cuisine is an expectation of the visitors.

Value of the Service

Farm stay or farm B & B owners have to provide the service value to the money
paid by the visitors. Do not think that visitors to the farm stay are looking for
44
cheap and low facilities. They are not back packers.

Visitors to farm accommodation do not expect facilities that match a 5 star


hotel, but that does not mean that they will accept something that is mediocre
either. Host of the farm stays need to offer better accommodation facilities with
clean, well-organized, attractive rooms, clean and attractive linen and furniture,
to make them feel comfortable with the facilities. Farm stay owners must realize
that to have a successful business “happy guest” is an important factor. They
will be happy only with service and facilities against the money they pay. It
comes a full circle - people want value for money, they want to be comfortable,
and they want to feel special.

Visitors expect not only the good quality room facilities but also high quality
food, farm activities and other services in the farm stay. Food must be tasty and
authentic. That means if you notice that food is organic and farm fresh, it should
be as it is. Your guests have come to enjoy the quietness of the countryside, so
make sure they get what they have paid for.

Activities to do and Places to see

Visitors who visit the farm stays like to involve in farming or other activities
related to countryside and they further like to see interesting places closer to the
farm stay. Fishing, boating, trekking, hiking, or horse or pony riding are some
examples for activities.

Tourists also like to know that if they feel adventurous during their stay and
the places of interest close to the stay. So therefore farm stay owners need to
mention these popular tourist places on their web site and broachers. These
places are a draw-card for the location, which creates another level of interest
as to why visitors should book your farm accommodation.

High quality hospitality

High quality hospitality is an indispensable factor for success of your farm


stay/farm accommodation. Fabulous customer service means going the extra
mile, getting to know your guests’ needs and trying to be accommodating. It
is connected with high quality hospitality. Always having a true smile on your
face reflects the level of your hospitality. Even if you do not offer full-board or
guests have not requested evening supper, if there are guests who have traveled
all day and arrive late in the evening, offer them a cup of soup and a snack.
What that has cost you for this simple supper in monetary terms will have
paid you back hundred-fold in goodwill and free advertising. Also keeping a
toileting kit in the room or wash room including a small piece of soap, a tooth

45
brush and tooth paste, shaving raiser, a budget pack of shampoo will give high
acceptance by the guests. Tea making facility in the room will also reflect your
hospitality. A small basket of basics on arrival for your guests renting your
self-catering cottage (if it is) is always welcome. Some homemade bread, jam,
eggs, butter, sugar, coffee, tea and milk can all be built into your cost, but when
it is presented on arrival, the feeling is that you have made them feel special
and the gesture will be positively received. Bottled water is preferred by the
guests always. Always think of the needs of your guests and pay high attention
to fulfill their needs.

Promoting and advertising

Promoting is a very important factor for the success of your farm accommodation.
Some farm stays have very attractive websites, but unfortunately they are with
less numbers of guests. This is because your web site is hidden. Your farm stay
will be the best farm accommodation to offer, but then millions of other farm
stay owners around the world think so too. Therefore, you have to understand
competition is severe. Everyone is trying to compete with others and sell own.
Today there are a number of accommodation guides in the internet which
you can use to market / advertise your property. Few of these are trip advisor,
booking.com, agoda, budget travel, asia rooms, etc. It is important to note that
the photos that you post on your website or the accommodation guides must
not exaggerated what you presenting reality. They must show the real situation
of your farm stay.

Farm Catering

Farm catering is an integral part of Agri Tourism. Tourists staying in the farm
or excursionists visiting to see the farm may like to consume some meals at the
farm. They are willing to buy their meals at a restaurant in the farm. There is
a great variety of farm catering services in agri tourism such as self-catering,
catered by the restaurant, self-preparation of food, and u pick & cook. The
variety is connected with the type of catering, source of food products, number
and time of meals, places of serving meals, etc.

Food products usually come from the farm as own production. By serving own
farm products, farms can increase their income. The time of meal serving can
be in different criteria; for example, by the time of serving meals (breakfast,
lunch, dinner, tea). Also it can vary according to the place of serving the meals
(indoor catering under candles light, outdoor open air, or outdoor in the bush,
side of a lake, or normal restaurants, etc.). Further the type of preparation (who
cook the food) of food can also give a different experience to the visitors such
as self-catering, catered by the restaurant, self-preparation of food, and u pick

46
& cook. The idea of agri tourism lies in the varieties that make the meals very
special and different from the meals served by other tourism destinations. Each
meal may be identified as an individual variant of an agri tourism product.
Also the unlimited possibility of meals’ differentiation causes the farms to be
different from each other (Sznajder and Przezbórska, 2004).

Today young couples like to have their weddings in a working farm. This is
an exceptional experience for them on their most memorable day in life. In the
USA, the Vermont Farms Catering offers wedding ceremonies in the farm to
become a unique and memorable reality. The company provides a seamlessly
organized and elegant dinner for 10-250 guests at any of their partner venues,
including the Riverside Farm, Amee Farm Lodge, The Trailside Inn or other
venue according to the guest’s choice. These catering services can be offered in
house or in open air. During the sunny days open air catering is more attractive.

Farm catering can offer a unique experience to visitors by the place, way,
pattern, and type of the food offered to them. Visitors may prefer to take their
meals especially dinner with the farm family at their dining place or in the
kitchen. In the farm, you can organize open air dining under a tree, a place
surrounded with bushes, near a pond or stream, or up on a rock. The way you
present the food is very memorable. The author still remembers and like to
recall the memories he had in an old fashioned restaurant in Old Plovdiv city in
Bulgaria in 1984, dining under the candle lights with food cooked in charcoal
fire served in and clay pots. Farm fresh, homemade food prepared according to
the local traditional menus will definitely be memorable for a guest throughout
his whole life.

Participatory agri tourism

This is a specific feature of agricultural tourism. The products and services


assigned to it are available on farms exclusively. Products and services of
agri tourism comprise as follows and visitors are guided to experience these
products and services.

► Observation of agricultural production process by the framers,


including plant production, animal production and processing in
the farm, including guided or individual farm tours. This is called
“something to see”.
► Participation in the process of plant production (nursery works,
planting, harvesting, etc), animal production (feeding, milking, fishing,
etc) and processing (e.g. hay making, domestic cheese, curd or yogurt
making etc.) by the visitors. This is called “something to do”.

47
► Direct contact with domestic animals or the nature of farms in different
kinds of petting-zoo, safaris, horseback or pony back riding, etc.
In participatory agri tourism, it is expected to have collectivity among the
farmers in the village. It does not limit to a single farm family. In this type
of agri tourism, participation can be expanded to non-farming community in
the village too. In participatory agri tourism farmers are the main role players.
However, other people in the village such as women, small boutique owners,
fishermen, youths, indigenous medical practitioners, traditional dancers,
drummers, and many other parties have a role to play and income from agri
tourism flows to these communities.

Visitors like to feel and enjoy the rural life in addition to the farm life. Therefore,
farmers of the village with the support of the others in the village can plan
and organize extra activities such as rural folk dances, cultural and religious
activities, village tours, visits to heritage places closer to the farm, visits to
local markets, swimming in the village tank, river or stream (these types of
activities must have extra care and safety), boating, fishing, indigenous medical
treatments, mock weddings, etc. All these extra activities are undertaken with
the support of other members of the village. In this type of agri tourism, hosts
(farm family), visitors and village community will involve in activities carried
out or scheduled during the visitors’ tour and due to benefits sharing among the
villagers, success is higher.

There are a number of benefits in participatory agri tourism. They can be listed
as bellows.

► Visitors can get experience in both farm and rural life styles at the
same tour
► While visitors stays will be extended ones, farm family will have more
income
► Participation of the community members in the village to tourism
activities will help to create positive attitudes towards rural tourism
industry by the villagers
► There will be an economic boom in rural areas and livelihoods of both
farmers and non-farmers in the village will enhance.
However, there may be negative consequences of this type of tourism too.

► During the tours in the village, visitors may face embarrassments of


the extremist individual or small group villagers unexpectedly. This
may cause negative attitudes on rural communities by the visitors.

48
► Some of the village participants who involve in these activities may not
pay serious attention on their responsibilities and visitors may express
disappoint on host (farm family) who has planned the itinerary.
► There may be a risk that visitors may bring bad habits practices to the
village such as drugs, etc. These types of things may happen especially
when the tourists are not real agri tourists. These visitors may come to
the village because of compatibly cheap vacation costs in farm tours.
Participatory agri tourism can be a successful rural business, if there is a
developed farming culture in the village along with good solidarity within the
village community. High team spirit of the villagers is essential for the success
of participatory agri tourism.

Farm Retailing

This is called “something to buy” at the farm. Tourists watching or participating


in the production process are more willing to buy products that they observed
or produced by themselves. Direct sales are an important agri tourism service.
Often tourists buy fresh vegetables, fruits, honey, various processed home
made products such as cheese, curd, yogurt, pickles, chutney, and handicrafts
of the farm. Therefore agri tourism enterprises organise open-air markets and
road stands or stalls very often by the roads to advertise their products. Tourists
can consume bought products at the farm or they can take them home. “U Pick
Ups” are common in agri tourism connected with picking up of various farm
products, e.g. fruits and vegetables. Most often they can pick up mangoes, king
coconuts, veggies, etc. In this aim farm should be organized with foot paths for
visitors picking up their own fruits and vegetables.

U Pick Ups or Pick U Own

Some farms allow visitors to hand-pick their own fresh fruits and vegetables.
This form of direct marketing helps farmers save on labor and shipping costs
while offering consumers the freshest produce at lower prices. Some of the more
popular U-pick crops in North America, Europe and Other Western Countries
are blueberries, strawberries, grapes, peaches, citrus, sweet corn, and tomatoes.
Countries like India, Thailand, and Malaysia have fruits like Mango, Rabutan,
Orange, and Anona. There are also opportunities to pick more unusual items,
everything from persimmons and chestnuts to star fruit and avocados.

A trip to a U-pick farm makes a fun family outing. Visitors can enjoy fresh air
and sunshine while choosing the best quality fruits and vegetables at the peak
of ripeness. There are lots of benefits in picking your own. Visitors reconnect
with nature, support your local economy, and get to know your local farmers. A

49
visit to a U-pick farm is a great learning opportunity for kids. They experience
firsthand where their food comes from and how it grows; and studies show
they’ll be more likely to eat their fruits and vegetables if they have a hand in
the harvest.

Advantages of U-Pick Ups

► Direct sales to the consumer and lower operating costs bring a profit
even if prices may be lower.
► There are no transportation costs and no need for seasonal labor.
► Lower packaging costs because customers are encouraged to bring
their own bags, and berry cartons are included in the pricing.
► Income is in hand when the consumer leaves the farm.
► Since customers are allowed and often encouraged to eat while picking,
an entry fee usually covers the cost of any produce customers may eat.
Despite this, the produce at U-pick farms often cost lower since the
cost of hiring farmers to harvest the produce is precluded.
Farm Shops

A farm shop is a type of retail outlet which usually sells produce directly from
a farm. Some farm shops also resell related goods such as locally produced
groceries, foods, drinks and delicatessen products.

In developed countries the number of farm shops is increasing as farms seek to


diversify their sources of income in the face of financial pressures. Direct sales to
the consumer allow farmers to retain a larger portion of the resulting profit than
they can obtain by selling to a wholesaler or larger reseller. Many farm shops
sell higher-margin premium goods such as organic produce of known local
provenance in order to differentiate their offerings from those in supermarkets.
Larger farm shops may target the leisure-shopping market, offering tea-rooms,
gift shops and rural lifestyle products.

Farmers’ market

A farmers’ market (also farmers market) is a physical retail market featuring


foods sold directly by farmers to consumers. Farmers’ markets typically consist
of booths, tables or stands, outdoors or indoors, where farmers sell fruits,
vegetables, meats, and sometimes prepared foods and beverages. They are
distinguished from public markets, which are generally housed in permanent
structures, open year-round, and offer a variety of non-farmer/producer vendors,
packaged foods and non-food products.

50
Farmers’ markets exist worldwide and reflect their local culture and economy.
Their size ranges from a few stalls to several city blocks. In some cultures, live
animals, imported delicacies unavailable locally.

Roadside farm sales outlets

Many agricultural products can be sold directly to the public through a roadside
market. Retailing directly to consumers can be a viable alternative marketing
strategy and means of increasing profits for many small-scale agricultural
ventures.

Location is one of the most important considerations when developing a


roadside market. Spend time observing traffic flows in the vicinity of your
potential market location. What type and volume of traffic flows past the site?
Is your location on or near a major travel route? Will the market be visible from
the road? Will drivers have enough time to slow down to enter the site? Is there
clear visibility for cars entering and leaving traffic? Markets located along high
traffic routes are easier for customers to find, will likely require less signage,
and often benefit from significant “drive by” business. Conversely, a market
located in an out-of-the-way location on a secondary road will be harder for
customers to find, will require additional signage to properly direct customers,
and will need to be positioned as a “destination” in the minds of consumers.

Distance from your point of production is another important consideration.


How easy will it be for you to get your products to the roadside market? If
possible, locating the market near your farm will reinforce to customers that
they are getting fresh product. If your farmstead is clean and tidy, it will also
serve as great advertising.

Therapy at the farm (Health Related Products and Services)

Agri tourism can be connected with health services or health-related products


(Sznajder and Przezbórska, 2004). Tourists approaching to the countryside
may expect possibility of a specific therapy, e.g. special diet therapy, including
consumption of “healthy” products. It can be provided with organic products
if the farm has such. Also the visitors like to consume food prepared by using
firewood instead of gas or electricity. Not only that, they also prefer to consume
food prepared in clay pots instead of metal pots. All these are connected with
diet therapy. Other than farm products they like to consume dishes made out of
wild crop varieties. There are lots of medicinal values in these wild crop varieties
that cannot be found in urban areas. Also there are specific wild crop varieties
and food items prepared in different localities. Having fresh vegetables, fruits,
meet and other food items make a person mentally satisfy and it is a mental

51
therapy for a person.

Further, in addition to diet therapy, visitors can be arranged with other types
of therapy such as fish therapy, indigenous medicinal (aurvedic) therapy, foot
therapy, yoga or meditation, etc. Fish therapy is very famous within the visitors
in countries like Malaysia. In Sri Lanka fish therapy can also be introduced
with agri tourism especially if you have a stream flowing in the farm or closer
to the farm.

However, any kind of therapy should return good value for the expenses made
by the visitors. Also they must be completely genuine activities.

Fish therapy

Fish therapy offers people one of the most ancient health and beauty treatments
in the world by using garra rufa fish species which is called the Doctor Fish.
This old world health and beauty treatment is now being practiced throughout
world in a very modern way. This is practiced in Eastern and Western Europe,
South and South East Asia and Middle East countries successfully.

Fish therapy is now practiced a successful and attractive activity in agri tourism
farm too. Tourists to the farm will feel relaxed and refreshed. As agri tourism
operators you can utilize these amazing fish to offer your visitors an effective
and natural skin care regime with lasting benefits.

The Agrifac Farm Stay of the Sabaragamuwa University of Sri Lanka offers the
visitors an unforgettable experience with fish therapy in a romantic and pleasant
atmosphere. Immerse visitor’s hands or feet in a small pond to experience a
shoal of toothless fishes that nibble at feet, removing dead skin, thus making
feet shiny and smooth, as the glow of natural skin is unearthed.

Here in this small pond there is Lanka Stone Suckers also called as Doctor Fish
or Garra ceylonensis for this treatment. The effects of these fishes give the
feeling of comb on the skin, and they consume the affected and dead areas of
the skin, leaving healthy skin to grow.

If there is a stream or flowing water source in the farm or closer to the farm,
you can offer fish therapy to the visitors in natural environment. This Garra
ceylonensis or Garra rufa fish species are naturally grown in streams. This
Garra rufa is native to Middle East and Garra ceylonensis is native to Sri
Lanka. In Middle East, Garra rufa has been used as a medical treatment for
individuals with skin diseases like psoriasis.

52
If there is no stream or flowing (running) water resource in or closer to your
agri tourism farm, fish therapy can be operated in a pond or fish tank. If you
are doing it in a pond or a fish tank regular cleaning and circling of water is
essential to keep it hygienic.

There are a number of benefits visitors can get from fish therapy.

► Natural and organic form of exfoliation of dead and dry skin: Fishes
remove dead skin and bring back the glowing skin. They eat up bacteria
and dead skin from the foot. These fish do not bite (they do not have
teeth); they suck, scrape and gently nibble away dead skin cells. So the
treatment doesn’t hurt the person at all. It does tickle.
► Promote body fluid circulation: due to micro massage sensation from
these fishes (oxygenate and stimulate blood circulation).
► Stimulate of acupuncture points of the foot and legs.
► Lightening and fading of secondary scars
► Alleviating of psoriasis and minor eczema
► Release stress and tension
► Promote relaxation; if your feet is tired and want to take break, fish
therapy is the best.
► Noninvasive skin detoxifier
► Smooth, clear , soft and beautiful skin
Individuals get increased secretion of endorphins from brain at the fish therapy
due to tickling by Garra ruffa or Garra ceylonensis. Release of endorphins
provides a pleasant feeling in the body. Also these fishes salivate an enzyme
which contains dithranol and it stimulates the growth of new skin cells.

In Saba province of East Malaysia, fish therapy units are organized along the
streams and shallow rivers. They called it “tagal- tagal” in Bahasa Malaysia
and very popular in this region among both local foreign tourists.

The author has experienced fish therapy in a pond established in the Agri Fac
Farm stay of the Sabaragamuwa University of Sri Lanka which is his brain
child. Fish therapy or spa is a good experience for visitors to a farm stay and
can be operated as an additional income source. The agri tourist farm operators
can include the charge for fish therapy directly into their entrance fee or as
overnight stay charges. It also can be charged separately according to the fee
policy of the farm.

53
Foot therapy

Foot therapy or reflexology dates back to ancient civilizations of China, Egypt


and India. The evidence from China that they practiced foot therapy dates back
to 4,000 BC. This is also called ‘stepping stone therapy” at the farm. According
to Chinese medicine, the sensory nerves of the internal organs of the body are
mainly gathered around particular zones of the feet. The application pressure
to these flex points in the zones of feet stimulate the functions of the respective
internal organs and it helps normal functioning of these organs. This pressure
can relieve pain, tension and fundamental causes for them in the body.

The human foot is comprised of 26 bones and around 100 muscles, tendons
and ligaments. It is the part of the body that bears the whole weight of the body
during a person walking and standing. Therefore, it is unavoidable of foot pains
or diagnosed foot problems at any age of life. These many of the problems both
external and internal can be avoided by performing foot exercises to stretch and
relieve tension from the muscles of the foot.

Reflexology walking path is one simple and effective method to massage feet
for improved health and relaxing. Cobblestone walking paths are common in
many countries for the use of foot therapy. These are available in parks, in
private gardens, in eco resorts, and many other open places that people go for
relaxing. This type of a cobblestone walking path can be set up in an agri tourist
farm enabling visitors to experience self-foot massage by walking along these
paths on bare foot. The Visitors can relieve their feet and legs after a long walk
around the farm.

These paths consist of smooth stones embedded in concrete with one edge
sticking up or lying flat to provide stronger stimulation of nerves of the feet.
These reflexology walking paths add remarkable value to the agri tourist farm
and can increase attraction of the visitors.

Generally this type of a walking path is minimum 15 – 20 meters long and


about a meter wide. Longer ones are better and give more time to the walkers.
It is very important to note that walking must be on bare foot. Sometimes this is
not comfortable for people who have not experienced bare foot walking outside
the home premises. The best way is to begin gently and for a few minutes first,
and slowly increase the time daily.

These paths in a farm are a superb way to get benefits of reflexology being
outdoors in fresh air and in a surrounding of green vegetation. It stimulates both
mind and body of a visitor and benefits of foot therapy is higher.

54
Regular walking on foot therapy paths (Reflexology Walking Paths) gives lots
of benefits to the walker.

► Stimulates reflexology areas and pressure points in the feet that


correspond to all major body organs.
► Stimulate and normalise the blood circulation of the body
► Relieve stress, mental imbalance, and body pains
► Helps to alleviate lots of pains and irregulities of body organs and
allow normal functioning of them
► Relive foot pains and relaxes the foot mussels.
It is not expensive or difficult to construct a reflexology walking path in an agri
tourism farm. Having a reflexology walking path in the farm gives an additional
value to the farm and visitors to have “something to do”.

Horticultural therapy

Horticulture therapy is important an activity that can be introduced in agri


tourism farms. There are two types of therapies in this nature. They are
horticultural therapy and therapeutic horticulture.

Horticulture therapy is a process in which people are working with plants and
involving in gardening activities aiming to improve body health, peace of mind
and spirit. Gardening activities and working with plants are being used as a
medium for therapy to address a variety of physical and mental disabilities
and illnesses. Working with soil, plants, fruits and flowers will provide an
opportunity for people to remain active, be productive, to keep peace of mind
and to socialize with others.

Therapeutic Horticulture is the purposeful use of plants and plant related


activities to enhance physical and mental health and wellness for individuals or
group of people.

Both Horticultural Teraphy and Therapeutic Horticulture give positive benefits


for the interaction between people, soil, plants and gardens to improve cognitive,
physical, social, emotional and spiritual wellbeing. These are very good options
for people from urban areas to regain their peace of mind which is lost due to
their busy lives.

A section of the agri tourist farm can be designed as horticulture therapeutic


garden to address a variety of applications within health care, rehabilitative and

55
other therapeutic settings. A therapeutic garden is a plant dominated environment
purposely designed to facilitate interaction with the healing elements of nature.
Interaction between people and plants in these gardens can be passive or active
depending on the garden design and needs of the users.

The basic features of a horticulture therapeutic garden can include accessible


entrance and paths, raised planting beds and containers, and a sensory oriented
plants section focused on colour, texture and fragrance. It is better to take
assistance of a horticulturist to landscape this area with plants (vegetables,
fruits, flowers, herbs, etc) to create a beautiful environment that is useful for
horticulture therapy.

Interaction with beautifully grown vegetable and flower beds, and fruit trees
has therapeutic benefits for farm visitors and horticulture garden can provide a
stress free zone for these visitors in all age categories from children to senior
citizens. The view of a beautiful horticulture garden has positive physiological
impacts on people whether or not they are consciously aware of them (Toyoda,
2012). These effects include reducing high blood pressure, reduced muscle
tension, and lower skin conductance (Relf, 1998).

Plants which the clients feel comfortable are used for horticultural therapy
or therapeutic horticulture. The colour, shape, smell, texture, and taste of the
plants along with butterflies, birds and insects like honey bees stimulate the
senses of the individuals and make them comfortable. Touching plants with
beauty and good fragrance, seeing beautiful flowers and plants, involving in
gardening activities that the visitors to agri tourism farm feel comfortable lead
to stress reduction in horticulture therapy (Toyoda, 2012).

When preparing a garden for horticulture therapy, selection of plants is


very important and therefore, plants which easily elicit the visitors’ interest
combining with their memory, plants which grow fast, blossom & bear fruits
quickly and plants that are attractive to the visitors should be selected.

Horticulture therapy as an activity in an agri tourism farm gives uniqueness


to it and helps to attract the visitors in different age categories. It increases the
income of the farm through tourism.

People who are involved in gardening haven’t faced frustration. Individuals


who enjoy gardening, feel happy if they weed for at least five minutes. All types
of horticulture therapy help people maintain a healthy life. Horticulture therapy
and therapeutic horticulture are must activities in an agri tourism farm and that
will attract more people and can use as a promotional tool as well.

56
Nature therapy

Nature or eco therapy is another type of therapy that can be provided to visitors
to the farm. Agri tourist farms are compiled with plants, flowers, fruits, animals,
water sources, and clean air. These are features of rural nature and visitors
to the farms like to feel this nature and enjoy it. It is a type mental therapy
for these visitors which they cannot get in cities. The nature therapy means
that better health is with the nature. According to the health care researchers,
eco therapy or nature therapy (also known as green therapy) has regenerating
powers, improving mood and easing anxiety and depression. This author has
successfully experienced in the nature or at a farm environment the improving
of appetite which is less or lost at home or in busy life.

Nature Therapy is a creative approach that takes place in nature. It relates to


the bond between human beings and nature and to nature’s healing elements
incorporating nature into the process while seeking to expand it to additional
dimensions (Nature therapy center, Israel).

Health care professionals find that being in a natural environment has numerous
health benefits. Today, kids to the parents spend very little time in the nature.
Even today farmers who do natural farming have a long life. Unfortunately,
higher majority of farmers are looking for higher yields and addict to synthetic
farming and get diseases like kidney damages.

Families are recommended to visit rural areas and stay in farms for couple of
days being away from TV, computer, busy communication and be relaxed in the
nature in order to help control weight, blood sugar, anxiety, and several types of
mental and physical depressions.

A beautifully organised farm can provide nature therapy to its visitors and it is
a less effort activity. These are the unique features that you can use to promote
the agri tourism farm.

Medicinal therapy

Both herbal gardening and indigenous medicinal therapy can be introduced


as a part of an interactive package of agri tourism farms. Herbs are used as
functional foods, spontaneous medi care items, ingredients in cooking, etc.
Medicinal therapy is used for primary healthcare and to prevent mental and
physical stress, difficulties and get relaxation.

In agri tourism farms you can establish an herbal garden and indigenous medical
therapy unit to cater to visitors. Traditional farming and indigenous medicine
go hand in hand. This gives additional income to the farm stay.
57
Holidaying in a farm

Holidaying is a type of agri tourism. People like to go for their vacations out of
their residence area aiming to have special experience. The idea of holidaying
in a farm is spending free time away from home, on a farm or a ranch. This type
of agri tourism is mainly aimed at both local urban dwellers and foreign tourists.
By staying in the farm and experiencing farming environment, these visitors
also use farm stays to visit other places in the area such as historical places,
natural resources, wildlife, beaches, hiking, etc. The products and services
of holidaying in a farm are classified according to the length and season and
purpose of stay in the following way:

► Special Holiday packages offered by vacation farms,


► Weekend holiday (1-2 days) or longer holiday (during school vacations
and longer weekends)
► Holiday packages in a farm stay combined with sightseeing tours
► Working in farm in the day time and fun in the evenings
These holidays can be offered as expensive as well as cheaper offers. There are
visitors who like to have a very convenient lifestyle in the farm and have fun.
For them, accommodation and other facilities should be organised with higher
standards. Others who like experience real farming life with less facility can be
organised with cheap, but convenient accommodation and other facilities. Then
an agri tourism enterprise can attract both types of visitors.

Farm Entertainment

This includes the number of activities directly associated with farms and rural
areas. Farm entertainment includes farm festivals, folk songs and folk dances
etc. This provides the visitors a quick view of rural culture through festivals,
songs, dances and much more. Every rural area has a specific culture. The
idea behind the farm entertainment is to explore and preserve this culture.
This activity provides the opportunity to the local urbanities and foreigners to
participate and experience the traditional culture of the country. Here farmers,
agri tourism entrepreneurs and also the rural artists can generate additional
income (Sznajder and Przezbórska, 2004).

Potential Agri Tourism activities

There are a number of agri tourism activities that can be practised at any type
of agri tourism enterprise. Some examples are as follows.

58
Overnight stays: Lodging and camping

► bed and breakfast


► camp sites
► youth camp
► farm vacation (farm stays, feeding animals, picking fruit/vegetables)
► receptions, honeymoons
► tree houses
Special events and festivals

► music festivals
► holiday celebrations
► harvest festivals
On the farm

► pick U own
► do your BQ
► planting
► harvesting
► nursery practices
► fish therapy
► foot therapy
► herbal therapy
Off the farm

► farmers markets
► fairs
► roadside produce stands
Recreation activities and events

► fee fishing
► biking

59
► corn maze
► Pony back riding
► bird watching
► hiking
Educational programmes

► organized tours: school children groups, officer groups, farmer groups,


tour groups
► agricultural education programs: how to grow organic products, how
to produce vermin compost
► nature education programs: wildlife, natural herbs, bird watching
► demonstrations: cheese making, processed food making, honey
making, butter making, heritage hand crafts

60
Chapter Four
Planning and Organizing an Agri Tourism Farm

Types of Agri Tourism farms

A s an entrepreneur, if you decide to start an agri tourism farm, it is important


to know about the types of agri tourism farms. Then you can decide the
most suitable type for your capabilities and business requirements. If you want
to convert an existing farm into an agri tourism farm also, you need to have an
idea about the different types of agri tourism farms.

If you want to establish and run agri tourism farm you have to fulfill some basic
physical requirements in the first instance. What are these? First you must have
an idea about what a farm is.

Farm

An agricultural farm is the basic production unit in agriculture. It consists of the


land and other requirements for cultivation and animal rearing such as buildings,
machines, tools, water resources, inner roads, canals, and energy sources. It has
and maintains its own workforce. All activities and production are managed by
a farmer. The farm differs from other production units because the land is the
most important factor and it produces mainly food for people and animals.

A farm which introduced a new section into its structure –agri-tourism – is


called an agri tourism farm. An agri tourism farm produces plant and animal
products and offers service in agri tourism. The both sections on an agri
tourism farm; agriculture and tourism, is dependent on the other. Often the
farm production depends partly or fully on tourism and vice versa, for example
tourists eat food produced on the farm and the objective of a tourist to visit a
farm is to experience the quiet farm life. The amount of income from a given
section depends on each other and can be different.

On a pure agriculture farm 100% of income comes from plant and/or animal
production as well as food processing. On an agri-tourism farm, part of the
income comes from tourism and the rest from the farm production. The ratio
of agri-tourism income against the total income of the farm shows the meaning
of agri-tourism for that farm. The more income comes from agri-tourism, the
more important it is for the farm. In agri tourism farms a reasonable amount
of the land is used for buildings, car-parks, lawns and flower-beds to make
the area more attractive. Water sources are used to create water features for
recreation. The way of managing an agri tourist farms is sometimes different

61
from other farms. For instance, general farms try to specialize the production
focusing often on one kind of production, while for the agri-tourism farms
diversification is better because this way it is more attractive for tourists.

The agri tourism farms try to make their production more extensive and
ecologically/ environmentally clean because these meet the needs of the tourists/
visitors. Visitors in agri tourism prefer ecologically and environmentally clean
production. General farms try to introduce as much technical development as
they can aim for higher production. However, these modern techniques used
in farm production are not very attractive for agri tourists. The traditional and
indigenous methods of agricultural production are of great importance for agri-
tourism. They are different in different countries and even in different regions.
Agri tourism farms accept technical development only in the field of improving
tourist service. The approach at which the agri tourism farms look at the market
is also different. The market is very important and agri tourism farms consider
tourists and visitors as their main market segment.

Agri tourism farms can be classified according to the type of agri tourism
operation.

► Farm Stays : Farm House ( Farm Home stays) and Cabana type
accommodation
► Day Farms: Farm tours, Farm restaurants, U pick-ups (these farms do
not offer accommodation facilities)
Another type of classification is according to the type of agricultural operation.

► Mixed cropping farms : the number of crops are planted in these farms
(vegetables, fruits, paddy, herbs, cereals, oil seeds, etc)
► Horticultural Farms: Horticultural crops such as vegetables, flowers
and fruits are grown in these farms
► Mono crop farms: Tea, Cinnamon, Coffee, Banana ( single crop)
► Hybrid farms: Both crops and livestock are in these farms
► Livestock only farms
All these types of farms can be operated as Farm Stays and Day Farms.

Farm Stays

These are called farm resorts too. These are farms that offer accommodation and
meals for the tourists. Tourists stay at the farm for the purpose of participating

62
in or enjoying interactive on farm activities and other services offered to enrich
the farm life experiences.

Farm stays can also be classified as farm home stays and farm B& Bs. Farm
home stays offer accommodation right in the farm house where the farm family
lives. Visitors are guests of the farm family within the house. Farm B & B s are
with accommodation facilities in separate buildings within the farm premises.
Some of them are converted old farm buildings into wonderfully diverse guest
houses. There may be newly built cabana type farm houses for farm tourists.
Also there may be accommodation in tree houses or at a campsite in the farm
premises and farm stays come in many different patterns, shapes and sizes.

Saba Tea Garden in East Malaysia is a wonderful place with farm stays. They
have two types of farm stays; field officers lodgings were converted into cabana
type houses and traditional Borneo island long houses are constructed with
bamboo wood.

This author experienced a farm home stay in Midlands of England in the


summer vacation in 2002. It was operated by a lady and her farm was located in
a village closer to New Port town area. Two rooms of her house were allocated
for visitors and vegetables, fruits, herbs were cultivated in the farm. She had
few milking cows and hens for eggs. Most of the food served to guests was
farm fresh and homemade. Cheese, Butter, Yogurt, Vine & Sausages were
homemade and fruits and vegetables were farm fresh to the table. Even bread
was homemade. Visitors could go around the farm and pick vegetables and
fruits for buying at the departure. According to the owner her main business
period was May to September.

Most of the farm stays offer breakfast on the farm. Other meals depend on how
the farm is operated. Generally, farms which are located far from the cities
provide all three meals. Generally, at farm home stays visitors receive all the
meals and visitors are allowed to involve in cooking with farm family if guests
prefer to do so. Cabana type farm houses which are located separately from the
farmer’s house may have self-cooking facilities. If you are willing to operate a
cabana type farm stay, it will be convenient for visitors to have cooking facilities
in the farm house. However, breakfast is a requirement for any type of farm stay
along with accommodation.

Agricultural only farms vs Agri Tourism farms

Agricultural only farms are highly specialized and aims maximum profits. Their
goal is to produce the maximum out of the land available with the minimum
cost of production by practicing intensive agricultural practices. However, agri

63
tourism farms are different to agriculture only farms because they have to deal
with guests other than agricultural operations.

Main features of an Agri Tourism farm

In planning an agri tourism farm, it is compulsory to understand basic principles


and requirements of it. There are three agri-tourism basics: a) Have something
for visitors to see, b) something for them to do, and c) something for them
to buy. In planning your agri tourism farm you have to consider of the variety
of things you are going to offer visitors to see, what type of activities are
available for visitors to involve and their attractiveness and also the unique
things available in your farm for them to buy. From the first two things, you
cannot earn much income other than a reasonable entrance fee. You can make
a lot of money by organising a variety of things to sell to visitors. Research
shows that tourists buy mainly food, beverages, and souvenirs. You can have
a restaurant at the farm and a farm shop which sells fresh and processed food,
beverages and souvenirs.

Things to see

Farm Tours

Farm tours are organised as educational tours using cropping systems and
patterns and livestock as the main attraction. The aim of this farm tours is to
make awareness to the visitors about the different types of crops and cultivation
practices, harvesting methods and many more and different types of farm
animals and animal husbandry methods as well the plight of the family farmer
and create a positive image of agriculture in the visitors mind set. Especially
farm tours for school children can be organised as a concept of “re-invent
agriculture” where school children obtain knowledge on real farm life.

Historical re-creations

Agri tourism attraction on your farm can be created by displaying real or models
of traditional agricultural implements, techniques and technologies. Some
attractions grow out of the owners’ hobby collections—old farm machinery and
equipment, seeds of traditional crop varieties, traditional and environmentally
friendly farm buildings, transportation modes, and photographs of old and
traditional farming techniques and systems.

Processing demonstrations

Visitors like to see food processing on your farm such as milling (with traditional

64
kurahan gala), curd, yogurt and cheese production, homemade moju, pickles
and sauce production. You can make it more attractive by including processing
methods and techniques with an old timely flavour that is healthier and
environmentally friendly.

Crop art and Crop landscaping

Organise the farm with attractive landscaping with crops and designs of crop
arts. Most crop art consists of various designs of horticultural and grain crops
(eg: maize, paddy) in a field and designs are created by different coloured
plantings. Such crop art is best viewed from the air or from a raised structure.
There have also been proposals for creating mounds-like structures with
outlined in edible native plants. Also a model home garden can be prepared and
it will be attracted by both urban and suburban visitors. There are professional
crop artists / crop landscapers and it is wise to get consultancies from such
professional in planning and building crop art in your farm.

An example of crop art is the “veggie salad” concept, a subspecies of crop art.
With this concept a section of the farm is designed as an artful vegie salad and
a field is organised to a circular arrangement of vegetable crops. Pie-shaped
wedges of cucumbers, lettuce, tomatoes, and other crops that represent veggie
salad ingredients are planted. This is reportedly one of the fastest-growing
types of crop art.

Models of urban agriculture, water features with water plants and fish, paths
that are covered with arches with various types vines (fruits, vegetables and
herbs), and model herbal gardens are different types of crop arts that can attract
both adult and young visitors including children .

Natural features

An outstanding natural feature on a farm may become a tourist attraction—a


waterfall, a jungle, a stream, or a spectacular view of mountains. Water is a
popular natural attraction; sometimes natural features of interest to a visitor
may have been overlooked by the farmer.

Petting zoos

One of the very best things you can organize in a farm for agri tourism promotion
is to have farm animals and pets of all different kinds. Especially petting zoo in
a farm is attracted by children. There are many animal friends you can have in
the petting zoo, including ponies, goats, sheep, chickens, ducks, geese, rabbits,
and many more. Children can feed the animals too. They love that. The petting

65
zoo is free for the children, but you can have a sales outlet to sell feeds for the
animals which will give you an income and free food for your animals.

Things to do

Educational activities

The educational activities offered on farms range from half a day classes or
short-term workshops to full-scale, accredited courses of study. Farm schools
accommodate interns or apprentices, and charge tuition for the learning
opportunity. Some farms offer classes in cooking, arranging flowers, or making
herbal medicines. They depend on these activities to help build a clientele for
their main products. Farms have traditionally offered field days, sometimes
sponsored by a farm organization or the provincial government. Many farm
tours are also considered as an educational activity. Most of these farm tours
are guided by an expert in the farm and what they describe and explain is an
education on the farm.

Children like to involve in various farming activities starting from nursery


preparation to harvesting.

U-Pick ups (Pick U own)

A U-pick or pick-your-own farm is a type of farm where visitors are allowed to


harvest their own produce. Generally u pickups are practiced with vegetables,
fruits and flowers. Visitors to do milking at dairy farm are also considered as a
type of u pickup. Since visitors are allowed to eat while picking, an entry fee
usually covers any produce customers may consume there. Despite this, the
produce at U-pick farms often cost lower since the cost of hiring farmers to
harvest the produce is precluded.

Pick-your-own (PYO) or U-pick operations are a type of direct marketing


system where visitors harvest fruits, vegetables, flowers by themselves. U-pick
is often preferred by visitors who like to select fresher, higher quality, vine
ripened produce at reasonable prices. Also, many visitors enjoy picking produce
themselves as a recreational event or outing. U pickups also can serve as an
additional selling method for producers who use other direct and non-direct
marketing alternatives.

If you allow PYOs in your farm you have to have a well organised farm with
sign boards to show the crops and information on cultivation and to show the
directions, one or two workers to guide the visitors and facilities to purchase
the picked produce.

66
Petting zoos/children’s enjoyments/pony back riding/hayrides

Ponies, rabbits, ducks, lambs, baby goats, calves, and piglets are certain
attractions for both city children and their parents. Pony and bullock cart rides
are part of the mix.

BBQ by own

You can make available visitors to prepare their own BBQ at the farm under a
tree or close to a bush.

Therapy

If there is a stream or large pond is available in the farm you can organise
fish therapy and it will be a very good activity. You can also organise paths
where visitors can get foot therapy. Apart from these, different kinds of herbal
medicinal therapy can be introduced.

Things to buy

Food and Beverages

You can organise a restaurant in your farm where you can sell cooked food
from farm produce and drinks. King coconuts and young coconuts are favours
of visitors. Fresh fruit drinks and herbal drinks both hot and cold are good
options. However, don’t sell factory made artificial drinks. Fresh milk and milk
products are preferred by both children and their parents. Homemade ice cream
and sweets, sandwiches, fresh fruit, BBQ, and roasting fish are all possibilities
for ready-to-eat food sales.

Gifts and souvenirs

You can have a gift and souvenir shop at the restaurant premises. It is important
to have your gift items represent your farm, something that is actually produced
locally. Stick to a theme, something that truly represents the uniqueness of
your farm and your region. T-shirts, pens, mugs, caps and hats, processed food
bottles, wood carvings, pottery, and decorative items such as fresh and dried
flowers and hand loomed cloths are examples of gift and souvenirs.

Fresh and processed food stuff

Visitors prefer to buy fresh vegetables, fruits, meat, milk and eggs from your
farm. You can also organise to prepare processed food for sale. Homemade

67
brinjal moju, lime pickle, tomato sauce, mango chutney, ambrella chutney,
butter, curd, yogurt, and cheese are examples of processed food that can be sold
at your farm shop.

Your agri tourism enterprise can attract two types of visitors. They are day
visitors and overnight stay visitors.

► Visitors connected with agriculture and day visitors– it is offered as


a tourist product directly connected with agricultural environment,
agricultural products (half a day seminar, field visit, u pickups, open –
air festivals, one day / half a day product tour, local holidays, etc).
► Tourist stays on the farm (farm tourism) – this form of tourism is
tightly connected with the place of stay and tasks that are done at the
farm. The stay on the farm can be connected with different interests
(eg; bird watching, sport fishing, hiking, pony riding, etc)
The owner of the agri tourism farm, has to take into account the needs of
potential tourists ranging from these basic requirements of something to see,
something to do and something to buy. These needs can be fulfilled by properly
adjusting elements of agri tourism to meet the needs. Among these elements,
organizing of accommodation on the proper level, attractions of environment,
accessibility of every-day facilities and forms of spending the leisure time are
very important. Hospitality is the most important intangible asset required for
your agri tourism business.

Hospitality of an Agri Tourism farm

Many factors influence the development of agri tourism. Next to the


attractiveness of the farm environment, means of constant production, the
social assets – people, their personalities, their public relations and tendency to
leading the agri tourism business, are important factors for the success of the
enterprise. A person or a farm family that leads their own agricultural enterprise
has to take all these aspects into consideration and as a consequence to create
such style of life that will allow fulfilling the needs of potential tourists. Agri
tourism ensures its participants the silence, peacefulness, active form of rest in
the natural environment, and first and foremost, the tight contact with the local
people in pleasant atmosphere.

The important factor of starting and developing of agri tourism is to build


peoples willingness and their competences to agriculture and related leisure
activities. The condition to develop agri tourism is creating of positive
relationship between farming and the tourists. The key element to the success
of agri tourism enterprise is pleasant service and kindness of hosts next to good

68
standard of farm which is attractive to tourists. Often the high qualities of the
region or place – the presence of numerous complexes and of various services
– can be insufficient, if the quality of service on the farm is poor. In order
to meet the expectance of tourists and to make them´ feel at home´ you as
the host should have the following features: independence, openness, kindness,
tolerance, ability to understand others expectations, punctuality, quickness,
optimism and ability to cooperate. The host should guess the client´s needs and
first and foremost to deal, so that the client is convinced, that there is nothing
more important than them and their needs. These needs result mostly from
motives and aims of the journey. Owing to above mentioned features, the stay
of the tourist will be pleasant without unexpected and unnecessary stresses
disturbing the rest. The next feature which each owner should have is flexibility
and willpower. These predispositions – next to stress resistance, learning from
failures and positive relationship towards people – bring the expected results
in every enterprise. However, it is the kindness of the host towards the client,
which should be characteristic for every host. In other words, there are internal
and external factors that influence the success in agri tourism and make tourists
want to visit the given region. External factors are: the attractiveness of the
landscape of the given region and presence of numerous sights. Internal factors
include the standard of tourist base; the quality of agricultural services, standard
of rooms, and kindness of hosts. Estimating of both kinds of these factors will
allow to indicate the potential possibilities of development of agricultural
services. Hospitality, kindness of hosts and the time they sacrifice for tourists
make the agri tourism exceptional and a different form of spending free time.

Establishing and Running of an Agri Tourism farm

If you want to establish and run agri tourism business you have to fulfill some
basic physical and human requirements in the first instance. What are these?

Table 3.1: Ways of managing agri tourism farm

Type of managing Features of managing


Partial use for the agricultural production ( crops and
Land Usage livestock), and rest for tourism (cabanas, restaurant,
car parks, farm shop, therapy, etc)
Farming activities serves agri-tourism; crop and
Structure of production livestock diversification; balanced development of the
farm
Production of agriculture is not totally commercial
Way of production
basis; even enabling the tourists taking part in it

69
Extensive production and protection of the
The level of production environment; preferably organic farming; optimal
usage of the agri-tourism area
Production inside farm for its own tourism purposes,
The market for products
over production sold on the market
Two sources of income: agricultural production and
Source of income and its
tourism, or tourism alone; the meaning of tourism
meaning
depends on its share in total income
Socio cultural Need of using folk traditions, benefits to the society

In establishing a agri tourism farm (starting a new farm from beginning or


converting an existing farm) you have to bear three types of costs. They are
establishing costs, property costs and production costs.

Establishing costs

This is the cost incurred in purchasing a land, fencing, and construction of


buildings, water tanks, bans, electricity supply, inner roads, and other similar
things.

Property costs

Property costs are the costs, which must be paid even if the farm does not
produce goods. It is obligatory to pay taxes and payments, paint the building
or repair damages. Even there is no farm production or agri tourism activity,
owner has to bear some cost and this is property cost.

Production costs

Costs connected with producing goods and services are production costs. This
cost includes both cost for agricultural production and agri tourism.

What is the type of Agri Tourism that fits into your farm?

You can operate agri tourism as a supplementary enterprise, complementary


enterprise or primary enterprise. You have to decide what the most suitable and
appropriate type for your farm is; supplementary enterprise, complementary
enterprise or primary enterprise. These are described in chapter one.

It is important for you, as a farmer, to realize that agri-tourism has the potential
to become whatever you want it to be on your farm. Whether you use agri-
tourism as a supplementary, complementary, or primary enterprise, you must
be ready to think creatively and plan effectively in order to succeed your new
enterprise.

70
Standards required for an Agri Tourism farm

The following minimum standards are required for operation and running an
agri tourism farm.

a. Location: The farm shall be located at a generally accessible place to


visitors. It should be a safe and peaceful location.
b. Facilities/ Amenities: The farm shall have the following facilities/
amenities in addition to must required facilities to operate an agri tourism
farm.
► Reception counter (place) – A reception area is needed to welcome
visitors / guests and provide information about farm operations, farm
tours offered, services and other facilities to them
► Parking area: A vehicle parking area is needed. It shall be closer to the
reception area.
► Dining place: There shall be a dining place or area for the visitors. It
can be the restaurant of the farm. Dining area can be planned to attract
visitors by organizing recreational and activity area adjoining to the
dinning place.
► Farm guides: There shall be farm tour guides who accompany with
the visitors for the farm tour. They shall provide information on farm
operations, processes, products, and other unique features of the farm.
► Farm shop: There shall be a farm shop where visitors can buy the farm
produce (fresh and processed) and souvenirs from the farm.
► Accommodation facilities: Accommodation facilities shall be provided
with according to the required standards, if farm is operated as a farm
resort.
c. Infrastructure: Supportive infrastructure facilities such as internal roads,
walking paths, electricity and lighting, clean water for drinking, cooking
and washing purposes and communication are needed.
d. Safety and Security: To ensure safety and security following facilities
must be there.
► Security Personnel: There should be a service of 24 hours on duty with
security personnel to ensure the safety of guests
► Safety Signages: Appropriate safety signages must be displayed in
the agri tourism farm premises and at the reception, a notice shall be
displayed informing about the safety signages.

71
► “No entry” areas: No entry areas shall be clearly demarcated. Access
to these areas shall be blocked and public areas must be designated
clearly.
► Firefighting facilities: There shall be firefighting facilities in the farm
cabanas/ farm houses and all the buildings.
► Internal communication facilities: There shall be an intercom system
within the farm especially if it is a lager one, enabling visitors to
communicate with the farmer or caretakers at an emergency situation.
► First aid facilities; A well-stocked first aid box shall be available at all
the times.
► Farm animals: Farm animals shall be kept within a distance from
visitors.
e. Sanitation: Sanitation facilities are necessary in a farm stay and followings
are required.
► Wash rooms: Clean wash rooms with necessary amenities such as
flow of clean water, soap or hand wash liquids, hand towels or tissue
papers. Wash rooms must be cleaned regularly.
► Resting places: Clean and well maintained indoor and outdoor resting
places for visitors shall be provided. Drinking water facilities shall be
provided at these places.
► Garbage bins: Garbage collecting bins shall be placed within the farm.

72
Chapter Five
Agri Tourism Product Development and Products

Classification of Agri Tourism products and services

A gri Tourism Products are spreading in a wider range. Agri Tourism products
are not merely activities. It includes place of implementing the activities,
people involved, facilities needed for tourists, something to see, something to
do (activities) and something to buy for the visitors/ tourists and procedures.

We cannot separate agri tourism and services as tangible products and intangible
services. Agri tourism products include services too. Agri tourism products and
services can be classified into following categories.

a. According to the time of availability of product or service


- Products and services available at any time of the year
- Products and services available on a particular time of the year
b. According to the requirement of the customers
- Tailor made products or services
- Readymade products or services
c. According to agri tourist activities
- Agri accommodation
- Direct marketing
- Farm tours
- Farm education programmes
- Farm festivals and cultural events
- Farm restaurant and food service
Products and services available at any time of the year

These are agri tourism products available throughout the year and they are
easy to find due to their free availability. Agri tourism accommodations, farm
restaurants, farm tours are available at any time of the year. The around the
year availability of products or services also depends on the region or area.
For instance, farm tours as banana tours, tea tours or cinnamon tours which are
available in tropical regions are available throughout the year. Farm tours as

73
vine tours, berry farm tours, apple and pear tours are seasonal due to the nature
of agricultural production of these products.

Products and services available throughout the year are comparably cheaper
than seasonal ones. Even in accommodation sector, there are peak times and
off seasons according to the availability of tourists. During the peak time, in
niche markets like agri accommodations, prices are higher than general hotel
accommodation.

Farm restaurant is an agri tourism product that can be available throughout the
year. However, in countries with temperate climate agri tourism products are
marketable during the seasons with good weather conditions. In tropical and
subtropical countries most of the agri tourism products are possible to offer to
customers around the year.

Products and services available on particular time of the year

These are seasonal products. These products or services are available only
in some seasons of the year or during specific time period. Some fruits such
as mango, pears, apples, rabutan are available seasonally and harvesting of
these fruits is also seasonal. Farm festivals are also available in a particular
time. In South and South East Asia paddy planting and harvesting festivals are
very popular and colorful. Most of these are cultural and related to religion
(Buddhism, Hinduism). Visitors can watch these festivals and their rituals only
during the available season, because these festivals cannot be demonstrated
as mock events. While they are closely related to satisfying of gods, farmers
hesitate to make mock ones.

Due to seasonality and rareness of these seasonal products, they are expensive.
However in some cultures, visitors can watch them free of charge. These days,
even in rural area due to open economic condition, people try to gain a value for
everything. These are challenges in agri tourism which aims to give a positive
impression on rural values to visitors.

Tailor made products or services

Agri tourism entrepreneurs can offer tailor- made products or services to the
visitors according to their wishes and requirements. As an example, children
from cities may not have seen cooking in clay pots with fire wood. They may
request the farmer of the farm stay they want to experience cooking with
fire wood in clay pots. Therefore, the farmer can organize requested type of
cooking sessions in his farm. It is organized according to the requirement of
the visitors and can be discussed in detail on their requirement before planning

74
it. Another example is that visitors from a school may request to demonstrate
milking manually. A farmer can organize a day session of milking and allow
them to learn hand milking. These are tailor made products organized only on
request of the visitors. Further the farmer can charge for this type of services
or products from the visitors. Tailor made products or services are expensive
because the farmer has to take extra effort and spend money to customize his
services or products.

Readymade products or services

These products or services are already available in the farm or agri tourism
enterprise and may be included into the tour package. As an example, in a
banana tour in Ecuadorian banana plantation, all the activities from planting
to processing and packaging of banana are included to the tour package. This
shows that a tour package of banana tour includes transport facilities to and
from the given point of gathering of visitors ( hotel, train station, bus station,
airport, etc) to banana plantation, site seeing in the plantation, a tour guide
service, involving in activities, Q & A sessions, refreshments (or lunch or both)
and any other action as per the schedule. When a visitor buys the banana tour
package, it includes all above with conditions or without conditions. Most
of these tour packages are with conditions apply. A farm B & B is included
accommodation, breakfast, hospitality and farm tour into the package. These
are readymade products and services and included into the tour package.

Components of Agri Tourism products and special features

Agri tourism products and services differ from each other due to their originality,
nature, place, types of activities and sustainability. However, each agri tourism
product must include one or more of following components.

► something to see
► something to do
► something to buy
These components have been described in the Chapter 4.

Any agri tourism product must have a direct or indirect relationship to


agriculture. They must also show some kind of tourist attraction. While agri
tourists are a niche market segment in the broader tourism market, agri tourism
products must have following special features.

75
► Uniqueness
► Attractiveness
► Specific features
► Accessibility
► Affordability
Uniqueness

Agri tourism products must have exclusivity with its nature of business. It means
tourists cannot get these products out of the agri tourism sector. As an example
farm cabanas are unique to agri tourism. You cannot find accommodation in
farm cabanas or farm cottages in other places. It is available only in a farm.
Farm tours are unique to agri tourism. Banana tours in Ecuador, Coffee tours
in Tanzania or Tea tours in Sri Lanka can be an item of the tour itinerary of a
tourist or group of tourists. Nevertheless, this item of the tour itinerary is an agri
tourism product. Not all the tourists prefer to include an agri tourism product
in their tour itinerary. Only people who like farming, nature and environment
prefer to visit a specific farm and experience it.

Attractiveness

Agri tourism products must be attractive to tourists. Agri tourists vary in age
categories, in their origin, in education level, in social status, etc. These products
must be attractive to cater all these different groups of people. Elderly people
may like horticultural therapy, relaxing in a farm or fish therapy. Kids may like
petting zoos, boating in a lake in the farm, or working in farm. Young people
may like hiking, fishing or camping in a farm. Urban people may like to sleep
in a tree house in the farm rather than a farm house. Business people who have
a busy urban life prefer to relax in a farm without doing many things. Organic
food with traditional cuisine is a definite attractive agri tourism product for
most of the visitors.

Specific

These products should be precise and definite. As an example a farm house or


farm cottage in a farm must be with the definite features of it. Tourists come
to a farm to enjoy and experience farm life. They do not want to be in a luxury
bungalow. If it is traditional cuisine, recipes, type of cooking (eg, cooking
with wood fire), cooking pots and all other things and methods of it must be
traditional as it was. Visitors come to taste traditional cuisine, not something
altered.

76
Accessibility

Farm and the agri tourist products must be accessible to the visitors. The farm
may be with specific, attractive and unique agri tourism products. Visitors can
experience the exact real farm life in the farm, but as it is located in a very rural
area and visitors have to go on foot a long way to reach the farm. This type of a
farm with difficult accessibility won’t be a tourist attractive place.

Affordability

Agri tourism products must be in an affordable price level to the majority of the
tourists. It is true that to prepare a real traditional cuisine is costly. However the
price of such a meal at a farm should be at an affordable level to attract more
people to visit the farm to taste it. Generally due to all above features of an agri
tourism product, they are more expensive. Nevertheless, agri tourism operators
must keep in mind that to attract more customers the prices of these products
have to be at affordable levels.

Participation of stakeholders in product development

A number of stakeholders with a variety of interests and goals participate in


developing agri tourism products. Other than the framers who play the key
role in agri tourism the number of partners play important roles in product
development. The key players in agri tourism product development can be
identified as farmers, villagers, community organizations, private sector tourism
sector people, government officials, transporters, etc. Farmers only are unable
to develop a variety of agri tourism products as they need support of other
stakeholders.

Agri accommodation

Different types of farm accommodations are considered as agri tourism products.


Farm accommodation is rated on the basis of standards accepted internationally
and is a good business decision for owner/operators and their guests. According
to the definition of a tourist, farm accommodation is the real agri tourism
product. For your information, the definition of a tourist is “a person who is
supposed to leave his/her hometown (permanent place) on temporary basis
for the purpose of seeking new experiences, having fun & entertaining, doing
sports, seeing cultural & historical places (attractions) etc, on the condition that
he/she should stay not less than one day (including a night) and not longer than
12 months, make use of a tourist facility for accommodation and spend his/her
own money through their holiday”.

77
Farm accommodation can be arranged as Cottages or Cabana type or Farm
house type.

A. Cottages/ Cabanas

If the farm has a couple of acres of land, that is the perfect location for having
cottages or Cabanas. Cottage or Cabana type accommodation is an option
for farm families who want more privacy. Also for small and medium type
entrepreneurs who like to operate agri tourism as a business in their existing
farm or new farm, the most suitable farm accommodation is cottage type. The
location of the cottages shall be according to the land situation of the farm.
They have to build a location in the farm witch is far enough to stay private.
This means the tourists’ privacy shall be secured.

The location of the cottage should have some uniqueness to attract tourists.
It can be closer to a jungle adjoining the farm, a water cottage in a lake in the
farm, at a bank of a stream or lake in the farm, a tree house or with any other
specific attraction.

Often, the cottages are rented on an overnight basis. There can be a kitchen in
the cottage with cooking facilities and utensils where tourists can prepare their
meals. They may like to pick their own the vegetables and purchase other food
items from the farm and prepare their meals. You can also organise their meals
from the farm and charge separately.

Cottages should have clean and quality washrooms with hot water facilities,
standard beds, dining facilities and parking to obtain One Star rating. Also one
star rating has criteria such as a standard room size, quality window screens
and coverings, linen, writing table with chair, clothes storage, linens, door locks
and smoke detectors. Two star rating exceeds the previous requirements by
offering better quality mattresses, linens, floor carpets, and additional room
furniture including a sofa, TV, and veranda chairs. A breakfast with a minimum
of two items must also be provided on the premises. Three star accommodation
must have matched furniture, better quality bedding, and have a private bath
or shower for each Cottage/ Cabana with hot water facilities. A mini toilet
kit (soap, shampoo, shower cap, etc) is provided for each cottage. Four star
units must have superior quality throughout the facility and must have laundry
facilities for the guests. Only properties with luxury in par with world standard
are awarded five star rating. They offer outstanding facilities, guest services and
amenities.

78
B. Farm House

This is the type of accommodation organised in the farmer’s residence itself.


One, two, three or more rooms in the farmer’s house are allocated for guests.
These rooms must be organised to keep the privacy of both farmer family and
the guests. However, guests may like to experience the life of a farmer family
and this facility must be available to the guests.

Facilities for the guests shall be organised as pointed out in the section on cottages
to obtain the type of star certification for the farmhouse accommodation. There
can be shared bathroom facilities for two or three rooms or attached bathroom
facility for each room. Most of the guests prefer attached bathroom facility.

Three star facilities shall have a bathroom in each bedroom. Unless a home is
originally built to facilitate a bed and breakfast operation, a bathroom in each
bedroom of a farm home is structurally difficult. Most rooms are not big enough
to accommodate this, and the expense of this renovation would be difficult to
recover.

Therefore, Two Star bed and breakfast operations are feasible at most farm
homes that area already operated in the farm. The following parameters can be
used as guidelines:

1) The bed and breakfast operation is open throughout the year


2) If the farm house can allocate three bedroom units for guests, one
bedroom can have one king size bed for two people and two bedrooms
can have two beds for four people. They will share a common bathroom.
3) Each bed room can have a TV set and appropriate furniture such as
a writing table with chair, clothing lockers, a tea making facility and
mirror table.
4) Linen will be provided and changed daily or according to the request
of the guests.
This business profile has highlighted two star farmhouse bed and breakfast
operations as an Agri tourism business requires less capital investment than
new cottages or cabanas and is a good opening to the agri tourist industry on
a small scale. The returns are only modest at this level, but if the entrepreneur
finds that he or she enjoys agri tourism, then the business plan can be expanded
and developed to a larger scale that may include additional cottages, a roadside
market, or farm based other recreational activities. There are entrepreneurs
who have been very successful entering agri tourism business and there are

79
others who have made only marginal returns. It depends on the capability of the
entrepreneur to enter and maintain the business according to required standards.

A number of farm based activities could be operated in conjunction with the


farm accommodations to help increase the activities offered to guests on a pay
as you go basis.

Examples of these are:

► Nature Trails
► Bird Watching
► Pony back Riding
► Petting Zoos
► Farm Tours / Demonstrations
► Farm Museums / Heritage Education
► Stocked Ponds for sport fishing
► Nursery activities
► Green house farming
► Organic manure production such as vermin cast
Direct marketing

Other Agri tourism produce on the farm may include the Direct Marketing of
farm products at the farm gate or a farmers’ market. Innovative ideas using
farm-based products have the greatest potential to earn the most money. Finding
the niche markets and expanding on these unique opportunities can create the
most rewarding and successful business ventures.

Different events on the farm, such as bee honey collection, U pickups, and
farm restaurants with out-door BBQs can be instigated as direct marketing.
Marketing niches such as water gardening supplies, herbal plants and products,
flowers and exotic plants and breeding exotic animals can be added as farm
based markets and these require careful attention to constantly changing
consumer trends. These can be very profitable if developed in connection with
other agri tourism products. These markets can also attract many tourists who
are looking for something different for the whole family such as out- door
BBQs, pay fishing or bathing at an open well.

80
Value-added products of the farm can be introduced to develop and expand
direct marketing business. Farm products can be further processed and sold at
the farm gate and to attract clientele, the farm shop shall offer something that is
different from the competitors. Value added products, such as buffalo curd, milk
toffees, specialty meats and cheeses, fresh fruit juices, special flavoured farm
made ice cream, or dried flower arrangements are popular. These products,
when marketed on or near the farm, can attract visitors to the rural location and
enhance the community’s economy.

Farm tours

Farm tours can be organized in many different fashions. There may be just one
farm hosting the tour, or a group of farms in a given area, providing the tourists
with an overall idea about agriculture in the area.

Tours may be operated individually, where a family or group of people choose


to participate in the tour on their own. Farm Tours can be operated on a large
scale, if tour operators include the farm tour into their tour package in advance.
A packaged tour may include a half a day or one day tour of a farm and a
processing plant so that the tourists will have a full understanding of the food
chain from nursery stage to planting and up to harvesting, processing and
marketing.

There are very good examples of this type of commercial farm tours in the
world. Coffee Tours in Tanzania, Banana Tours in Central America, Wine tours
in France, Whisky Tours in Scotland and Orange tours in Spain are some of
them. In Sri Lanka you can start Cinnamon Tours, Tea Tours, Banana tours, and
Coconut Tours.

Also joining with tour operators, farmer groups can initiate various trails or
driving routes, where a number of similar enterprises can be seen along the
route such as a Tea Route, Cinnamon Route and Coconut Route.

Specific farm tours

► Coffee Tours
► Tea Tours
► Cinnamon Tours
► Banana Tours
► Orange Tours
► Berry tours

81
Coffee tours

The main objective of the Coffee Tour is to educate and inform the local and
international population with regard to the whole production process as well as
the processing of coffee. The tour takes place on a Coffee Estate, where visitor
can learn about the production, the harvesting, the processing plant and the
roasting of the grain.

Guided by an expert, visitors will receive extensive information, which will


make this activity an incomparable experience. The tour begins in the seedbed.
There the visitor will observe and be explained the development process of the
plant up to the point of harvest of the ripe grain. The visitor will also learn about
the history of the estate, its owners, the production and varieties of plants, the
geography of the area and the traditional ways of cultivating the grain.

The second station is the coffee processing plant. The visitor can see the first
classification of the grains, afterwards the process of de-pulping of first and
second quality coffee takeing place in the grinders.

Next, the natural honey of the grain is cut in the fermentation tanks and a
process is carried out that is significant to the taste of the coffee. The coffee that
has been dried in the Guardiola or on the patios under the sun is stored in the
warehouse. This grain is ready to be peeled, and then exported or roasted in the
country. Finally, the roasting plant is visited, where visitor will be explained
and can observe the different types of roasts that are offered. Once the tour
is over, a visit is made to the souvenir shop, where the visitor can find coffee
packed in sealed bags.

Tea tours

This is an essential tea planting and processing experience. The Tea Tour
is currently offered in some tea plantaions in Sri Lanka. A tea planter or tea
plantation tour guide will show visitors firsthand the age-old tea planting and
making process. First, follow the trail of the planters, as they trek through the
dense jungle looking for the best slopes on which to plant tea. Then watch the
tea puckers pick two leaves and a bud with deft hands. Visitors visit to a tea
nursery and learn and experience on tea nursery management. They will be
guided around the tea plantation and will observe demonstrations on pruning,
plucking and other cultural practices on availability.

Then visitors visit to the factory where the all-important conversion to “made”
black tea happens. In some tea factories in up country in Sri Lanka machinery

82
of very traditional British design, some as old as 100 years can be seen. The
process is a very artisanal one, unchanged for a century. The tea tour ends
with a tasting of different grades of this great brew. Together with tea-infused
cuisine, tea based spa treatments and trekking trails that traverse tea-blanketed
hills, can be introduced in the tea tour. Finally, visitors will go to the tea shop
and buy different grades of unblended tea packs from its origin. They leave
the tea estate with a newly found appreciation of this wonder herb “Camellia
Sinensis”.

Banana tours

The purpose of a Banana Tour is to show all how the world’s most popular fruit
is produced on a commercial basis, so that the visitor can see the tremendous
care given at every step of the operation to produce the best product for the
consumer, while minimizing the impact on the environment. Banana tours are
mainly operated in Central America. Here is an example from Costa Rica.

The Banana Tour is currently offered in Central American countries including


Costa Rican farms. Bananito farm is located about 20 minutes south of Limon.
Zurqui farm is located in Puerto Viejo de Sarapiqui. Zurqui farm has the
following facilities designed to ensure customer satisfaction. The “Banana
Tour” introduces the visitor to the world of bananas in a very realistic manner.
Zurqui farm has an extended roof attached to the packing plant. Up to five
buses fit at one time, protecting visitors from rain when entering and leaving the
tour area. Zurqui has conveniently located restroom facilities for the exclusive
use of the visitors. Zurqui has specially conditioned trails which connect the
packing plant with nearby areas of the banana plantation. From these trails
visitors see demonstrations of agricultural practices. The trails are built in such
a way that the farm is able to host up to six groups simultaneously in the field,
with more groups viewing the packing process while waiting. Each group of
roughly 25 people is attended by the Agency’s guide, who will has previously
been trained by Banana Tour personnel. The two farms have ample parking
areas for up to 10 buses at a time. The trails are covered with gravel for comfort
and safety; the foot bridges are wide and have handrails.

Given above are three types of famous farm tours operated by tour operators
included into their tour packages together with other activities. A farmer or
group of farmers can have an arrangement with a tour operator to include these
type of farm tours into their itinerary. This is a win- win business. Both farmers
and tour operates will be benefitted from this type of a business. Farms will
get continuous flow of visitors and tour operators can offer an attractive tour
package to their guests who are different from other itineraries. Thereby both
parties will earn good money.

83
Packaging Agri-Tourism experience

Agri tourism development takes place in an integrated manner and can take
advantage of many added extras and be sold as one product. The packaging
of an agri tourism experience requires more work in the planning stages but
has potential to attract more customers. An example of packaging of the agri
tourism product could be a collective effort whereby the agri farm is one of
many destinations within a local tour. The farm products could be highlighted at
the farm entrance and presented for lunch at the farm restaurant. Different farm
operators can work together to package their products to form a basket of agri
tourism products for tourists. A stay at a farm Bed and Breakfast can include
admission to the local agricultural fair, a harvesting festival, and a local guided
tour. Also honeymoon packages can be designed to be part of a cottage with
Bed and Breakfast stay where the newly wedded couple can get a memorable
experience.

Pricing of Agri Tourism products

An entrepreneur shall have knowledge on how to do pricing of the agri


tourism product. This is a business and the price of the product includes cost of
production, taxes and profit margin.

The price you charge for your agri tourism product is one of the most important
business decisions you make. Too high or too low price will limit your business
growth and adversely affect your agri tourism business. Finally, such a price
will cause serious problems for your sales and cash flow.

If your business is a new one, you should carefully consider your pricing strategy
before you start the business. Already established businesses can improve their
profitability through regular price revisions.

When you are setting the price of the agri tourism product, you must make sure
that the price and sales levels you set will allow your business to be profitable.
At the same time you must consider the position of your product compared with
your competitors.

In pricing your agri tourism product, you have to consider the characteristics
of a niche market too. Further, in making decisions about your product price,
you have to know the difference between cost and value and it will increase
profitability of your business;

► the cost of your agri tourism product is the amount you spend to
produce it

84
► the price is your financial reward for providing the product including
the taxes and profit margins
► the value is what your customers believe the product is worth of, to
them
Pricing should be done considering the value of the benefits that your agri
tourism business provides for its customers, while keeping in mind prices your
competitors charge for similar type of product.

To maximize your profitability, find out:

► what is the uniqueness of your agri tourism product


► the new experiences that you provide to your customers
► what is the value your customers place on the benefits you provide
Therefore, when you are setting the prices, that may reflect the value you
provide, not just the cost of the product. However, this decision should be taken
after considering the appropriate pricing policy for your business.

You have to cover your cost of production in order to make a profit. Therefore,
you have to calculate the cost of production of the agri tourism product
accurately, and it is essential for deciding the price of the product.

There are two main costs to be considered.

► fixed costs : this cost is fixed to produce your product irrespective the
scale of business ; how much or how little you sell, (example: cost
of construction of buildings or rent , salaries of the fixed workers,
minimum cost for fixing of electricity, water service and telephones,
furniture and equipments, initial cost of advertising, etc. )
► variable costs: those that rise as your sales increase, such as
raw materials for food, extra labour , transport, advertising, extra
equipments, additional electricity and water bills)
When you set a price for your product, you have to consider both fixed
and variable costs and definitely it must be higher than the variable cost of
producing your product or service. Each sale will then make a contribution
towards covering your fixed costs - and making profits.

Two basic methods can be used for pricing agri tourism products. They are cost-
plus and value-based pricing. The most appropriate choice of pricing of your
agri tourism product is based on the type of business, type of product, what

85
influences your customers to buy your product and the nature of competition.

Cost-plus pricing

This takes the cost of production of your product and adds an amount that you
need to make a profit. This is usually expressed as a percentage of the cost of
production.

Cost plus pricing is generally more suitable for newly established agri tourism
businesses and businesses with high competition.

Value-based pricing

This focuses on the price you believe customers are willing to pay, based on
the uniqueness of your business and their attraction to your product due to
uniqueness and high quality of the product/ service. Value-based pricing
depends on the quality and uniqueness of your product that you offer to the
customers.

If you can clearly define uniqueness, high quality and specialty of your product
over your competitors, you can price your product according to the value
considered by the customers. While this approach can prove very profitable, it
can isolate potential customers who are driven only by price.

86
Chapter Six
Business Plan for an Agri Tourism Enterprise

Business consideration

I f you own a working farm or ranch already, you have the advantage of running
an established business and you can embed the agri tourism into your existing
farm business. If not, you can create a completely separate business as an agri
tourism farm. Regardless of your decision, you have to evaluate your business
structure options, especially to address liability risks that may be associated
with your agri tourism a enterprise.

Businesses can be structured in many ways. There are several common forms of
business structures, broken down by the most recognized reason for choosing
one over another: personal liability protection, a shield that prevents anyone
with a court judgment against the business from touching anything other than
the assets of the corporation. In other words, certain business structures better
protect personal assets of the officers, stockholders, and employees of the
business, reducing the risk that your house, personal property, or bank accounts
will be taken as a part of a settlement

Business structures with no personal liability protection

a. Sole Owner (Proprietorship)

Many business owners who are self-employed set up their enterprises as a


sole ownership. (Proprietorship) are with few special requirements and no
comprehensive legal paperwork. This one person is responsible for the liabilities
and debts of the business. If the business is sued, everything you own could be
threatened by the lawsuit. Income from the business is reported as a part of the
owner’s personal income and the sole proprietor pays self-employment taxes.
Generally farm stays business run as sole owner businesses.

b. General Partnership

When two or more individuals own a for-profit business, typically operating


under a written Partnership Agreement, the business is a general partnership.
All partners are responsible for the liabilities and debts of the business.

Distinct legal entities offering personal liability protection to shareholders

87
a. Limited Liability Company

The Limited Liability Company (LLC) is a separate legal entity established by


filing articles of LLC formulation or a similar document in the state where it
was formed.

I suggest that if you want to start a farm stay business in your working farm or
as a new farm, it is better to select one of the above three types considering your
financial capacities and management abilities.

Requirements to start up a farm stay

In starting an agri tourism business, you may consider following requirements.

a. Type of accommodation that you offer to the guests.


► Rooms in your farm house
► Separate Cabanas or Cottages
► Converted barn or farm building into a farm stay
► Farm guest house
► Campsites
► Yurt or platform tent
► Tree houses
► Water cabins in a lake in the farm
► Farm hotel

b. Legal requirements
► Registration of the business as a legal entity
While you apply to register your farm stay business as a legal entity you are
required to fulfill a number of legal, environmental and other requirements
before you get it registered.

c. Other regulatory requirements


► Building construction permits ( Building plan approvals)
► Environmental clearance certificates
► Tourist Board approval

88
► Country, State and local government tax registration
► EPF and ETF registration for employees

d. Employees

You have to think and decide what will be the work force of the farm stay. Is it
only the family members or hired work force? If you hire employees, you have
to decide whether they are part time, full time or seasonal base employees.

e. Finance

This is one of the most important requirements to start a farm stay business.
How much money you need to start your farm stay business depends on the type
of farm stay you are starting, how much money you have in your hand, how
creative, strategic and efficient you are when incur start-up expenses, and your
ability to attract funds from financial institutions, family members, or friends.
Most of the successful ventures start simple and small, and all businesses
change over time. An advantage to starting small is that you and your market
can readily adapt as you, your farm, and your market change.

Depending on the scale and scope of your business operations, there are several
funding options. The vast majority of small businesses start by drawing financial
resources from owners’ savings or assets as a one man or family business. It
is like, the business owner acts as a bank by personally making a loan to his
own business. For example, an owner might take a loan of Rs 300,000 for his
farm stay business at 6 % percent interest, for improvements of the farm for
converting it to a farm stay business. Every year, the business pays interest to
the individual personally on that loan until it’s paid off as he has planned, may
be within 5 years.

Family members and friends may provide a simpler form of financing, but
approaching them can strain relationships, and you need to evaluate what
would happen if the business falls behind on the loan payments. If you do have
family and friends who share your enthusiasm and are sold on the success of the
business, it is important to negotiate the terms of the loan and get agreements
in writing.

With a well-developed business plan, local financial institutions like banks,


finance companies, or community-based revolving loan funds may be a source
of financing for your business. These institutions generally take decisions
whether or not to loan you money depending on your guarantee and credit

89
history, as well as their experience with financing accommodation and tourism
businesses.

It is essential to consider the financial returns of the farm stay business even
though starting of this type of business is highly exciting. For most occasions, a
farm stay must add a new income to the farm. That said, the amount of income
can vary greatly depending on many factors. Some farmers may be satisfied
with adding a few thousands of rupees per annum to their net income while
others may want to net more. A farm stay operation is not likely to be extremely
profitable, and it is probably best to start small and grow as you gain experience
and customers.

Planning the business (Business plan for the farm stay)

Since everyone is not suited for carrying out farm stays and its related activities
on their farms, you first will need to determine whether or not a farm stay is
an appropriate option for you. Once you have decided that you are ready to
try farm stay business in your farm, you will need to set goals, assess your
resources, and develop a business plan. There are five main steps in farm stay
business planning.

► Personal assessment
► Business goals and objectives
► Internal resource assessment
► External resources
► Final Business plan
Description of business

As a farmer or a rural tourism operator after reading on agri tourism or attending


a workshop or conference on agri tourism, you may think agri tourism as a
viable business operation that can bring additional value and income to your
normal business. Sometimes you may be an entrepreneur who is thinking to
start an agri tourism business. You may be asking yourself “How I can start agri
tourism business in my farm or tourism venue?” First you must assess whether
you are capable to start and continue an agri tourism business and do you have
sufficient resources for it. Once you have decided that you are willing to start
with agri tourism, the next step is to set the goals and objectives, assess the
resources and develop a detail business plan.

In the business plan following sub sections should be included.

90
Personal assessment

There are many factors to consider while converting the existing farm into an
agri tourism farm or starting a new farm with agri tourism activities including
a farm stay. Before investing in an agri tourism farm, the entrepreneur must
carefully analyze his potential as a host and resources available for investment
in an agri tourism farm business. Suitable and appropriate planning and analysis
before starting the agri tourism farm business will considerably increase the
chances of it’s success. If the entrepreneur has ever had a good experience on a
vacation or visiting other agri tourism farm locally or internationally, he might
have had an idea of how to provide a good guest experience. It is important
to evaluate the ability as the entrepreneur to be a cordial, thoughtful host for
guests.

Following are some important areas an entrepreneur must have thought of.

► Willingness to meet people (both in and outside of the community).


► Willingness to entertain visitors who are complete strangers, never
known.
► Willingness to give up some of the privacy in running this type of a
business.
► Ability to be joyful and accommodating around the guests and make
them happy during their stay in the farm stay
► Ability to maintain and ensure that my farm and guest facilities are
always neat and clean.
► Capability to be a successful manager to operate this business
profitably.
If answers are “Yes” to all of these questions, then you might have the ability to
operate a successful farm stay business. You have to reconsider to invest in this
business, if your answer is “No “to at least one question.

Business Goals and objectives

Before writing a strategic business plan for the agri-tourism enterprise, an


entrepreneur or farmer should outline the business goals and objectives. If an
existing farmer is interested in adding tourism activities to his farm, he has to
consider the goals and objectives that have already been established for the
existing farm. If tourism fits neatly into the current goals and objectives of the
farm, then the farmer can move ahead to begin an agri-tourism business along
with farming. If tourism does not fit neatly into the current goals and objectives,

91
the farmer may want to either reconsider his objectives or consider a different
alternative enterprise.

If an entrepreneur is willing to start a new farm with agri tourism, he has to


outline his business goals and objectives match with an agri tourism farm. On
the other hand, experts in agri tourism always forget that this is a business that
involves both agriculture and tourism. Therefore, they always talk about how
farmers can start tourism in their farms. What about the possibility of the tourist
industry people to include farming into tourism? If it is the case, an hotelier can
add farming into his tourism enterprise. Converting part of the land of the hotel
or resort to a farm and mixing agri tourism concepts is possible. Nevertheless,
he has to consider the goals and objectives that have already been established
for the existing hotel or resort. If it fits clearly into current goals and objectives,
he can redesign the goals and objectives matched into a new concept and move
ahead with the new expanded business.

Internal resources

An existing farmer may decide to add one or more tourism activities to his farm
and convert it to an agri tourism farm. An entrepreneur may decide to start an
agri tourism farm as a new farm with tourism. A tourism resort owner may also
think to add farming into his resort and convert it to an agri tourism resort.

As the next step, before moving ahead it is essential to do an internal resource


assessment. Starting an agri tourism farm is an entrepreneurial process and
therefore you will need to view yourself and your farm in a different, creative
approach. Here, you have to prepare an inventory of all the products, services,
and resources you can use for the new business. It includes financial, physical,
human, and natural resources. Ask yourself the following questions:

► How much additional money or savings I can invest on the new


business?
► What is the extent of land I can use for the new business?
► Do I have enough labour for new business? Or Do I have to hire them?
► Is there enough water for new farm or expanding of the farm?
► Is the location attractive to visitors?
► What is the climate and whether of the area? Is it attractive to visitors?
► Are there natural resources such as water streams, waterfalls, forest,
birds, wild life, etc. available in the location?

92
Apart from above questions you have to consider following things too.

► What is the primary product or enterprise? Farming or Tourism?


► What are the major crops that will be cultivated in the farm?
► Can this enterprise be an attraction for visitors?
► What are the attractive features of the enterprise?
► How can the attractiveness be enhanced?
► What can be added to it to make it more attractive?
► What are major tourism products of the enterprise?
External resources

According to the goals and objectives for the new agri-tourism enterprise, you
have to think what the external resources you have to consider for starting your
project.

► Banks: If you need additional funds for your project, you have to get a
bank loan. Therefore, you have to identify what is the best bank to get
a bank loan. You have to consider a number of things before selecting
the bank such as conditions for the loan, interest rate and repaying
time schedule.
► Electricity and Water supply Boards: If you plan to get your main
electricity supply from the main grid, you have to contact the electricity
board and get their service. As same, if you plan to get water from
the main water supply system, water supply board is important to be
contacted.
► Tourist Board and tour agents: They can help promote your agri
tourism business and provide you information about the tourists who
visit your area (number of visitors per day/ month, tourists’ arrival
sessions, where they are from, what kinds of things they like to do,
etc.).
► Environmental Authority: If you need to get environmental clearance
for your project, you have to contact the Environmental Authority and
get their clearance.
► Other government institutions: If your project is in the area of
protected lands or closer to the boundary of them, you may require
getting approval from these institutes such as the Forest Department,
Costal Protection Authority, Land and Reclamation Board, etc.

93
► Local government bodies: You may have to get registered your
enterprise at the local government body.
Market analysis

It is very important to do a market analysis before investing in an agri tourism


project either in the excisting farm or as a new enterprise. In agri tourism, we
market not only products, but also our farming and life experiences. Therefore,
it is necessary to analyze market possibility of our products. We must know
following information about our customers.

► Who will be our guests? Age group, education levels, occupations,


social status, locality ( urban, suburban or rural) ,
► From where they are? Locals or foreigners? Or both
► What would be their needs? Can we provide them?
► When do we have the guests? Seasonally or throughout the year
► Do we get sufficient number of guests?
Marketing plan

This will be discussed in detail in chapter seven.

94
Chapter Seven
Marketing and Promotion of Agri Tourism products

Agri Tourism marketing mix

A gri tourism products are real farm product which are tangible. Agri tourism
products are services as most of other tourism services. Before attempting
to market your agri tourism products such as farm stays, agro techno parks, etc
it is better to know how services differ from products.

Services are intangible. They cannot be seen, tested, felt, heard, or smelled
before or after they are purchased. Majority of the goods are produced first,
then sold and consumed later but services are produced and consumed at the
same time. Two goods of the same type, brand and series are closer in quality,
but the two same types of services may not be in the same quality. Services are
like performances, frequently accomplished by humans, no two services will be
exactly alike. Services cannot be saved, stored, resold, or returned.

One of the most basic concepts included in a marketing plan is marketing mix,
which consists of the elements control and use to communicate with and satisfy
customers. Marketing mix of goods which are tangible described with 4 P but
considering the differences of goods and services, marketing mix of the services
are described with 7 P.

► Place (eg: How can you take advantage of the location of the agri
tourism farm?)
► Product (er:What do you have to offer the guests visiting to the agri
tourism farm?)
► Price (How much should be the charged for the agri tourism product
or pacakage?)
► Promotion (How do you advertise agri tourism products?)
► People (Who are the visitors or customers of agri tourism products?)
► Physical evidence (What are the tangible components of the agri
tourism products?)
► Process (How do you provide an excellent customer service?)
Place: How can you take advantage of your location?

Location of your agri tourism business may be closer to a major highway, in the
far rural area or end of a remote country road adjoining to a forest. Wherever

95
it is placed, you should know how to take advantage of the location. For
instance, if your agri tourism farm is positioned near a major highway, you
can capitalize on the number of holiday makers traveling by your site. On the
other hand, if your farm stay is in a remote location, you should target the
tourists who love to stay in the remote area and experience natural beauties.
You can get instructions from farm tourism consultant or you can discuss with
family members how your agri-tourism farm with farm stay can benefit from
its location in relation to roads accessibility, natural resources, heritage, rurality
and community resources. Then use these opportunities and benefits into your
overall marketing plan.

Product: What do you have to offer your visitors?

As an agri tourism operator you are going to offer your visitors more than
recreation or relaxing. In any agri tourism business, there is a main product and
value addition to this product and by mixing other activities of agri tourism you
may able to attract more guests. Visitors will experience unique activities that
will enrich their visit to your farm. Many tourists will enjoy the opportunity
to come closer to their agricultural heritage by staying at the farm stay and for
many people who visit and stay at your farm can experience a rare opportunity
to touch nature and discover how farm products are raised, harvested, and
distributed.

You as the agri tourism farm owner should identify both the common and the
unique agri-tourism activities that can be offered by your farm to the guests.
These are the value added products you can offer to them.

Price: How much should you charge for your agri-tourism services and
activities?

As the owner of the agri tourism business you shall have knowledge on how
to do pricing of the agri tourism product. This is a business and price of the
product includes cost of production, taxes and profit margin.

As an example, the price you charge for the accommodation, food and other
facilities during the stay at the farm stay from the guests is one of the most
important business decisions you make. Too high or too low price will limit
your business growth and adversely affect your business. Finally, such price
will cause serious problems for your sales and cash flow.

96
In pricing your agri tourism product you have to consider the characteristics
of especial features of the product. Further, in making decisions about your
product price you have to know the difference between cost and value and it
will increase profitability of your business.

► the cost of your agri tourism product is the amount you spend to
produce it
► the price is your financial reward for providing the product including
the taxes and profit margins
► the value is what your customers believe the product is worth of, to
them
The price of agri tourism product will be an amount that covers the costs and
desired profit margin.

The formula is:

Price = Direct costs + Overhead costs + Profit margin

Promotion: How do you advertise your agri-tourism enterprise?

Promotion is the core of any marketing strategy. Through promotional efforts,


you are able to inform customers about your agri tourism product and let them
know how it meets their needs. The goal of promotion and advertising is simple
and it is to reach the largest number of audience in your business target market.

Ways of promotion

► Word of mouth
► Printed materials (business cards, brochures, and reservation forms,
etc)
► Media – print ( tourism magazines, newspaper articles, advertisements,
etc)
► Media- electronic ( TV, Radio, Social Media, etc)
► Postal mail and Email campaigns
► World wide web ( website)
► Public displays (bill boards, posters, banners)
► Community networks ( NGOs, welfare societies, etc)

97
People: Who are the tourists?

In your agri tourism business marketing plan you should include a description of
the people that you plan to attract to your agri tourism farm and accommodation
in the farm stay. If your agri tourism farm is small in size of operation (few
hectares in size and limited space), it is better to attract customers as individuals
or smaller groups ( eg; families) and develop individual marketing plans for
each customer or smaller group . At the other extreme, if your farm farm stay
is medium or large in size of operation and possible to accommodate large
groups, you have to focus on group attraction strategies. Therefore, you will
need to target the appropriate market segments.

► Geographical demarcation – local, regional, national and international


► Demographic characteristics- age, gender, family size, income,
occupation, education, or religion
► Social consideration- social class, life style, or personality
characteristics
► Behavioral considerations- knowledge, attitude, uses, or responses
► Customization- importance of customizing services to fit each
individual’s needs
Physical evidence: What are the tangible components of service?

Any tangible items that facilitate the service interaction are the physical
evidence of your agri tourism product. As an example, in a farm accommodation
(farm house or cottages, campaign site, tree houses, etc), furniture in the
accommodation place, linen, food, etc are physical items. The condition of these
physical facilities will cause your guests to form an impression of the farm stay.
Basically, physical evidence is anything the customer can see or touch.

Process: How do I provide excellent customer service?

This is regarding the excellent service that you provide to the guests.

► Customer service - includes giving customers what they want and


fulfilling their requirements as much as possible up to their satisfaction.
► Customer-friendly attitude- Good customer service begins with a
customer-friendly attitude. A customer-friendly attitude begins with
the view that the customer is your god. He is your business ambassador.

98
► Service quality- there are five main dimensions that influence
customers’ perceptions of service quality. Those five dimensions are
reliability, responsiveness, assurance, empathy, and tangibles
As you become more conscious of the customer service provided at the farm
stay, you will begin to pay more and more attention to feedback from your
customers. It is important that you use all comments (both positive and negative)
to improve the quality of your service delivery

Market positioning

It is very important to do market positioning for your agri tourism enterprise in


relation to other agri tourism enterprises in the region and outside of the region.
Market positioning helps potential customers to know the real differences
among competing agri tourism destinations, so that they can match themselves
to these destinations that fit best their needs.

According to business dictionary definitions market positioning is “an effort to


influence consumer perception of a brand or product relative to the perception
of competing brands or products. Its objective is to occupy a clear, unique, and
advantageous position in the consumer’s mind”.

An agri tourism enterprise could be positioned based on value or price (high


versus low), quality (offering the highest quality products possible), location
(easily accessible versus remote), demographics-related (age, social status,
employment), number of visitors (high versus less), product attribute (specific
feature or benefit of the product), user (the ideal or representative target
consumer) and many other factors.

To do market positioning, as a businessman, you have to do a SWOT analysis


for your agri tourism enterprise to understand the position of your business
enterprise. It will help you to select the promotion strategy to reach your target
customers in order to maximize your economic returns.

As an example, if your agri tourism business is a tea tour, you should present
it to the potential customers by expressing why they should buy your tea tour
package on top of other similar tea tour packages. It may be its low cost or high
quality or originality and authenticity of the product or any other factor that we
call market positioning factors.

Some agri tourism enterprises are positioned using a combination of the


positioning options. However, care needs to be taken not to confuse the message
by trying to connect with too many competitive advantages.

99
Agri Tourism distribution network

Your agri tourism product may be highly impressive. Nevertheless, its success
relies on customers knowing your existence in the marketplace. The strength
of your presence in the marketplace will be very much dependent on choosing
the most effective distribution channels to reach and then sell to your target
markets.

Distribution is the variety of channels used to extend the promotion and sales
of your product. Distribution channels are the means by which you reach your
customers. The agri tourism distribution network includes agri tourism suppliers
(farmers), wholesalers, travel agencies (who act as retailers), and customers
(visitors to the agri tourism enterprises).

Tourism distribution network helps you to facilitate product sales in advance


of their actual use. This is particularly important if your target markets include
international tourists travelling on a structured prepaid itinerary, or domestic
tourists who prefer to confirm their itineraries prior to travelling. Advance sales
give you the advantage of being able to plan ahead.

The formation of a business link with tourism distributors does involve some
costs. In most of the occasions, agri tourism operators too can use the usual
tourism distribution networks with slight adjustments that suite the business
type. However, these are usually not upfront costs but they are after sales. This
is commonly recognized as a commission and is classified as a distribution
cost. The use of a combination of distribution channels to sell the agri tourism
product can contribute to improved number of visitors and, ultimately, forwards
increased income and profits.

It is very important to identify and appoint correct tourism distributors for your
enterprise/ product. In this decision, you have to consider following facts.

► Who are the best distributors for the type of your agri-tourism
products in the current market and how can you make contact with
such distributor/s?
► What are their commissions to promote your product and is there any
other costs?
► Does the selected distributor handle your competitors’ products?
► Are these distributors familiar with agri-tourism products and
especially with similar type of agri tourism products you have?
► What is their track record in promoting new product suppliers?

100
There are three types of traditional tourism distributors that play an important
role in servicing customers and the same types of distributors can be used in agri
tourism sector too. These are retail travel agents, wholesalers and international
tour operators. If you work with these partners, your product must be well
designed, well regarded and commissionable.

Supply and demand

As in marketing of any other service or good, in agri-tourism product marketing


too, it is very important to learn the supply and demand concept. During the
planning process of your agri-tourism business, you mast do a market survey
and find out the demand for your agri-tourism product. However, with a good
promotion and marketing plan, you will be able to attract more customers to
your farm. The most efficient and effective way of communicating with your
customers is through direct marketing

Direct marketing

Direct relationship between the host and guest or agri tourism producer and
consumer is very important in popularizing any agri tourism product due to its
nature of production. This type of agri tourism farmer and consumer relationship
develops the necessary trust between the two parties and consequently this
relationship promotes the agri tourism enterprise by word of mouth. Today by
using worldwide web and social media an individual farmer can promote and
make contacts with customers without help of mediators.

Familiarization tour

You can use familiarization tours in your farm to promote your farm tourism
products among the visitors. In this case, you can make free entrance to the
farm and introduce number of activities that visitors have to pay and consume.
You can also organize a farm shop where you sell farm products, souvenirs,
handicrafts made by fellow villagers and many more. A farm restaurant with
farm fresh food will give you more income from the visitors. A very good
example for this type of an agri tourism enterprise is Dole farm in Havaii, USA.

You can invite school children, welfare societies of companies, media personnel
and even local government authorities and make them aware about your agri
tourism enterprise and its products. Familiarization of tour participants has the
potential to influence others to visit your agri tourism farm. This is a good
method of promoting your agri tourism farm.

101
Promoting by using World Wide Web

In promoting your agri tourism enterprise you need to consider followings.

► First of all, in order to successfully promote your farm stay or agri


tourism enterprise / products and offers through social media you
need a website.
► The idea with a website is to have one place that you promote your
enterprise / product everywhere and where you can quickly update
offers or change them when you need to.
► Drive all the traffic to that website and even if the offers are no longer
valid after a period of time and someone comes to check them out,
they will still reach your site and check your other offers instead of just
loosing that lead.
► If you already have a website that’s great, if not definitely build one.
After having established a website where you publish your offers let’s concentrate
on how to actually bring in traffic in the world wide web. This is the main
problem why everyone is struggling to have their own online source of income.
Most go the SEO (Search Engine Optimization Tools) and link building way,
establishing their site, building links to it and waiting to get traffic from Google
and the other search engines.

This is a good route but it requires time, especially if the website is new you
will have to wait for at least a couple of months before you start seeing an

102
increase in your web traffic after months of link building. Besides taking time,
the link building method has another great disadvantage that you are putting
your source of traffic and income in the hands of Google and the search engines.

How to start driving immediate traffic to your farm stay or agri tourism
enterprise website through the aid of social media? These methods work great
because they are immediate, you post about your offers on social media and you
see the interaction right away and you see if people respond well to what you
are offering or not. If not, you can get an idea about what and how to change
and can do those changes right away and improve your strategy.

There are many social networks around, some are better for niches some are
better for others. If you don’t have a lot of time you should hand pick 1-2 and
stick with them, if you have a little more time on your hands you can go with all
the top social media platforms as they all have a different impact and can drive
different kinds of traffic to your website.

As a leading social media the Facebook can be used to promote your website
as well as your agri-tourism enterprise / products. The attractive thing about the
Facebook is that if you do it the right way your posts can become more popular
and shared by lots of people. When your offers are shared by other people their
friends start to see them in their news feeds too and you’ll have a reach like
you wouldn’t have thought possible. Also Facebook as you might know is the
social platform with the highest number of users so definitely there are a lot of
leads for you here.

So what can you do on Facebook?

► Create your Facebook page. This is the first and most important step.
You will need your own presence on Facebook and a page is the best
way to do it.
► You will use this page every time you post something on your website,
so post it on your Facebook page too with a link to the actual offer on
your website. This way it will act as a gateway funneling people to
your website. After you create your page, make sure you post 15-20
offers on it before doing anything else so anyone that sees it won’t
think its empty and not like it for that reason alone.
► Now you will need to promote your page. There are 2 ways to do
this, the way Facebook wants you to – spend on Facebook ads to get
likes to your page and the way I’m going to teach you that won’t cost
anything.

103
► If you have money and want to, you can try Facebook ads a little,
though I really don’t recommend you do it especially if you have
never done it before, as it will be expensive and not really worth it.
Though you try, the likes that come in this way, are of high quality.
One suggestion is cap your daily spend, make it like $5-$10 / day and
see if it’s really worth for it for you.
Here’s a better way to promote your Facebook page for free. You’re going to
join groups and share and post in those groups about your page. Groups are
a huge part of Facebook and a lot of people use them for different reasons,
so why not use them to your advantage? Some groups can be huge and have
hundreds of thousands of members, some might be smaller and have only a
couple hundred members.

Don’t be quick to dismiss the smaller groups though, sometimes they can be
worth a lot more than the big ones. This is because big groups also tend to have
a lot more posts added to them by their members so your post will fall below the
fold really quick and only a small portion of the members will have the time to
see it. On the other hand, the smaller groups have fewer posts so your post has
the chance of being on top for a longer period of time.

Here are few of the biggest groups related to agri tourism farms in cyber space.

Agritourism World: http://www.agritourismworld.com/

http://www.agmrc.org/commodities__products/agritourism/agritourism-
businesses/

http://www.etours.cz/agricultural-tours.html

http://www.etours.cz/walking-and-cycling-tours.html

http://www.etours.cz/birding-and-nature-tours.html

Free social media sites

Following are few social media sites that can be used free of charge to promote
your website as well as your agri tourism enterprise.

Facebook (www.Facebook.com) is a social networking site that connects


friends and families. The Web site currently has more than 350 million active
users worldwide.

MySpace is another popular social networking site.

104
Twitter (www.twitter.com) is a free information networking and microblogging
service that enables its users to send and read messages known as “tweets.”
Tweets are text-based posts of 140 characters displayed on the author’s profile
page and delivered to the author’s subscribers, who are known as “followers.”

YouTube (www.youtube.com) is the place to upload videos about your events,


testimonials from customers, a virtual tour of what visitors will see at your
ranch, and much more. You can then post a link to the video on your Web site,
blog, or with Twitter.

Digg (www.digg.com) is a social news Web site for people to discover and
share content from anywhere on the Internet by submitting links and stories,
and then voting and commenting on those links and stories.

Stumble Upon (www.stumbleupon.com) is an Internet community that allows


users to discover and rate Web pages, photos, and videos. It is a personalized
recommendation engine that could be very useful for your operation

Delicious (www.delicious.com) is a social bookmarking web service for


storing, sharing, and discovering web bookmarks.

Reddit (www.reddit.com) is a source for what’s new and popular online. Users
can vote on links that they like or dislike, help decide what’s popular, or submit
their own links.

TripAdvisor Media Network (www.tripadvisor.com) is the largest travel


community in the world, with seven million registered members and 15 million
reviews and opinions from travelers.

105
Chapter Eight
Special Features of Agri-Tourism

Agri-tourism as a moderated rural business

T he growth of tourism as a social activity along with the development


of the tourism industry throughout the world and as a highly important
economic function has been impressive during the past three centuries. During
the last seven decades after the World War II, most of the countries and regions
throughout the world have given priority to the tourism industry in their
macroeconomic portfolios.

Conventional or normally known as mass tourism needs large scale organizations


and resources. Due to these large economic entities with comprehensive
organizational structure, middle and small level entrepreneurs face difficulties
in entering to conventional tourism business. Therefore, these people looked
into alternative types of tourism industry where small and medium scale
entrepreneurs can enter and operate. What is this alternative tourism? Some
may argue alternative tourism is anything other than mass tourism. On one
hand, it is true. People who do not like to spend their vacation or relaxation by
the ways of mass tourism choose different ways which are suitable to them.
However, today, alternative tourism becomes more popular among people and
a substantial share in the tourism industry is devoted to the alternative tourism
sector.

Most of these alternative tourism approaches are closely related with rural
economy and thereby rural development. The main reason for this is the
tourist destination of these alternative tourism approaches are rural areas. The
alternative tourism approaches are namely, nature tourism, eco-tourism, heritage
tourism, agri-tourism, farm tourism, religious tourism and many more. This
alternative tourism creates a new economic opportunity in rural areas as well as
to the macro economy of a country. This situation leads to a strong relationship
between socioeconomic development and tourism as an industry in rural areas.
Further, such socioeconomic relationship leads to creating a number of tourism
types in rural areas.

My professional definition of alternative tourism is given in chapter one.

Therefore, does agri-tourism fall into the alternative tourism category? Can
we accept agri- tourism as a type of alternative tourism? The answer is “yes’.
Following features of agri-tourism can be used to distinguish it from mass
tourism.

106
► Accommodation – farm house where the tourists experience and feel
the rhythm of rural life, petting domestic animals, green vegetation,
fresh food, colourful landscapes, the sounds of birds and nature, the
smell of the non-polluted environment (today due to use of chemicals
at the farms this is questionable).
► Guests reception –farm family, farming community, experiencing
the customs of a farm family, rural hospitality, making contacts with
neighboring farmers and villagers
► Tourist experience – experiencing the rural lifestyle, understanding
the needs and daily tasks of farmers, getting to know and experience
the rural and farming culture, customs and traditions of the rural area,
history of the country and the region, traditions.
► Relaxing – contact and feeling with nature, the freedom in moving
around, peace, enjoy nature and rurality.
► Income distribution- it is distributed among farmer or entrepreneur,
local people in the area by providing different goods and services, tour
operators, local guides, etc
Formerly, agri-tourism was recognized as a part of ecotourism because both
have similar principles to conduct nature attractions (Rilla, 1999). In this case,
both history of agri-tourism and eco-tourism has similarities. Agri-tourism
started as a type of rural tourism and eco-tourism as well. In addition, both have
been identified as the fastest tourism development models in the world, and
get very serious responses. They have been widely developed in developing
countries as a potential development model as natural resources and support of
local society economically (OTA, 1992).

Considering the level of contribution of agri-tourism upon the development of


tourism sector and improving the social, economic and environmental situations
of local communities, it is proven by most cases that agri-tourism is a better
option of alternative tourism in rural areas.

Effect of agri-tourism in the development of rural tourism and


agriculture sectors

Agri-tourism requires a minimal additional investment and may utilize the


excess capacity of labor, capital, land, and natural resources. Excess capacity
may allow farmers to increase the scope of activities. Promoting agri-tourism
in a farm or ranch is a revenue risk management strategy. Agri-tourism attracts
customers to farms or ranches. A pick your-own fruits or flowers enterprise or
a nursery activity will attract families. These activities provide exercise, lots of
fresh air, fresh food, fresh water, relaxation and something to take home.

107
Agri-tourism may contribute to the stability of the green industry in any
country. It may help to improve farm viability by increasing the commercial
possibilities through both direct sales of crops & livestock products and other
business accommodations and by adding value to regional landscapes. It is an
excellent means of supporting rural communities. Tourists bring rupees to local
communities that keep rural communities alive and prosperous. The partnering
of tourism and the green industry will help strengthen rural economies.

Agri-tourism is an opportunity to increase agricultural awareness among the


public and to promote fresh farm products. It also provides opportunities to
increase consumers’ understanding of the environmental horticulture industry.
The interaction of tourists with nursery or greenhouse activities or crops carries
an educational aspect. Tourists tend to enjoy learning about items and processes
that they will not participate directly. A guided walking tour of a garden center
or nursery will help children learn the basics of how plants grow, and learn
what a farmer’s job includes. They will see the farm equipment, learn about
cultivation & animal rearing and will understand the importance of preserving
farmland as an open space for the future. Altogether, these children and even
adults will get knowledge from where and how their vegetables, meat, eggs,
fruits, milk, grains and all other food items come to the dining table. Then they
will start to respect both farmers and farming. So, we see that agri-tourism
opening a number of avenues to expand accompanied children’s knowledge to
Know Hows and Know Whys in the sector of agriculture paving and effective
path to attract more young learners in the field of agriculture in the years to
come.

For farming communities who try to diversify their economies due to less
profits and high risks, agri-tourism offers a compensating income source that
allows a large financial range for capital expenditure, depending on how much
the entrepreneur wants to invest. On the other hand, young people in rural
areas can start an agri-tourism enterprise in their farmland which will be their
main income source. However, maintaining the required standards and high
quality physical infrastructure and services is inevitable to operate a successful
business. Visitors come to see a quality farm and the first impression is very
important to attract customers. Therefore, farm layout and farm landscaping
play a vital role for the first impression of the visitors to the farm.

Advantages

Agri-tourism enterprises create employment opportunities for farm family


members and supplement the family’s income. One of the most rewarding
aspects of agri-tourism for many farmers is the opportunity to provide the
public with a better understanding of what agriculture is really about. It is also
an opportunity to enhance the community’s economic potential.
108
Disadvantages

On the other hand, the possible disadvantages of an agri-tourism enterprise


must also be considered. The tourism section of the farm may compete with
the main farm operations for time and labour if the farmer does not maintain
labor differentiation in his business. Some other negative issues are the loss of
privacy for the farm family, extra responsibilities, neglecting the main operation
of farming and paying more attention to tourism, and the higher accountability.

Nevertheless, many agri-tourism activities require only a small farm crew in


order to be successful. For instance, farm tours, bed and breakfasts, pony rides,
u pickups, petting zoos, and many other activities may be operated with little
additional investment in physical and human resources in an existing farm. Agri-
tourism is a successful compensating income source to rural agro enterprises.

Agri- tourism as a rural business

The term ‘Agri- Tourism’ is a new face of rural tourism and rural business.
Agri-tourism is a farm based rural business that is open to the public. These
specialized agri-tourism destinations generally offer things to see, things to
do, and things to buy, and are open to the public. Agri- tourism is defined as
“Travel that combines agricultural or rural settings with products of agricultural
operations – all within a tourism experience”. According to Pandurang Tavare
“Agri- Tourism is that Agri-Business activity, when a native farmer or person
of the area offers tours to their agriculture farm to allow a person to view them
growing, harvesting, and processing locally grown foods, such as coconuts,
pineapple, sugar cane, corn, or any agriculture produce the person would not
encounter in their city or home country. Often the farmers would provide a
home-stay opportunity and education”. Agri-tourism can be organized and
provided by the tour companies offering farm tours to agriculture farms and
providing entertainment, education and fun filled experiences targeting urban
people.

Agri-tourism is a way of sustainable tourist development and multi-activity in


rural areas through which the visitor has the opportunity to improve awareness
on agricultural areas, agricultural occupations, local products, traditional
food and the daily life of the rural people, as well as the cultural elements
and traditions. Moreover, this activity brings visitors closer to nature and rural
activities in which they can participate, be entertained and have the pleasure of
touring.

Agri-tourism is a business venture located on a working farm, ranch, or


agricultural enterprise that provides an “experience” for visitors while generating

109
supplemental income for the owner. Experiences provided to visitors, usually
take the form of educational or entertainment discovery and learning in a nature
or agricultural based environment. For this reason, agri-tourism is also referred
to as “agro-entertainment” and “agro-tourism.”

The history of agri-tourism dates back to the late 1800’s when people began
leaving the city to come to farms to visit relatives for short stays to escape the
city life. After the invention of the automobile in the 1920’s it became easier for
people to travel to rural areas. In the 1930s and 1940s, the Great Depression and
World War II gave rise to the first significant interest in rural recreation. In the
1960s and 1970s horseback riding and farm petting zoos became popular. In the
1980s and 1990s, farm vacations, overnight stays with bed and breakfasts, and
commercial farm tours became popular. Today, the demand continues to grow
for agri-tourism.

This is a rural business in the hands of various stakeholders such as inbound


and outbound tour operators, small and medium scale farmers, plantation or
agriculture companies, tour guides, villagers, etc. Unlike mass tourism, agri-
tourism is attracted by local tourists who are interested to experience rural
life as relaxation and escape from the urban busy life. Therefore, agri-tourism
benefits both farmers and local communities as a rural business because these
tourists bring money to spend for experiencing rural life. This money generates
extra income for these people in rural areas.

Agri-tourism as a risk management strategy in the rural agriculture


sector

Evidence from the production and price fluctuations during last three to four
decades in both conventional agriculture sector with intensive production of
rice, vegetables, and other subsistence crops and plantation agriculture sector
with intensive production of tea, rubber, coconut, coffee, etc shows that they are
highly vulnerable to external factors such as internal & international politics,
climate change and weather pattern changers, market and trade crumples, etc.
Sudden and unanticipated influences of these external factors cause higher risks
in sustainability of the agriculture sector as a consequence when both micro and
macro economies in a country collapse.

Types of risks faced by the farming sector

Farming activities are subjected to a wide range of risks due to biological,


physical and economic environment in which the farming operates. Most of
these risks are specific to agriculture and they affect the overall production and
economic efficiency of the agricultural production system. Further, these risks

110
cause to fall of farm incomes, welfare of agricultural workers with potential
to constraint future investment and growth of farm production. Therefore, it is
important to understand how the presence of risks in agricultural production
affects the economy and how these risks can be mitigated.

The main risks in farming can be categorized as follows (OECD, 2008).

a. Production or yield risk : this is the uncertainty about the volume or


quantity of agricultural production due to weather related factors such as
heavy rains, floods, droughts, cyclones and typhoons, tornadoes, frosts,
heavy snow falls, hails, etc , crops and livestock diseases, pest outbreaks
and change of technology.
b. Market or price risk: uncertainty and fluctuations of prices of both inputs
and outputs (agricultural production) due to market instabilities, trade
policies of the governments, new markets, etc
c. Regulatory risk: unexpected changers of national agricultural policies,
environmental regulations, provincial government laws, and trade
policies. This may happen due to change of rulers or any other political
reasons
d. Financial and management risk: changers of bank policies and its credit
facilities, change of interest rates, fluctuations in the share market,
international and national financial crisis, management change
e. Personal risk: personal hazards such as illness, death, theft, injuries,
family crisis, etc
According to OECD (2011) there are three different layers of agricultural risks
and they require different mitigation strategies.

► Normal risks: They do not need any specific policy response from the
government or relevant authorities. They can directly be managed by
farmers as a normal business strategy
► Catastrophic risks: Many or all farmers in a region or country get
affected by these risk sources and usually are beyond farmers’ or
markets’ capacity to cope with. Examples for this type of risk sources
are severe, prolonging and widespread droughts, outbreak and spread
of a highly contagious and damaging diseases or pests and unexpected,
severe floods. In such cases, the government invention is unavoidable.
► Marketable risks: In between normal and catastrophic risk layers lies
marketable risk layer that can be handled through market tools. These
tools are crop insurance, extended markets, cooperative systems,
guaranteed prices, etc.

111
Further, there is a difference between systematic and non systematic risks.
Systematic risks repeat over time with a pattern of probabilities that can be
analyzed in order to have a good estimate of the actuarial probability. Non-
systematic risks are very short or imperfect records of their occurrence and,
therefore, difficulties in estimating an objective pattern of probabilities or
distribution of outcome (Newbery and Stieglitz, 1981). If there is a high degree
of correlation among individuals in the same region or country the risk is called
a systemic risk. An individual risk that is independent and uncorrelated with
any other risks is called idiosyncratic risk. However, it is important to have an
idea about degree of correlation among these different types of risk in finding a
solutions to mitigate them (Jorion, 2001).

Factors influencing risks in the farming sector

The overall impact of risks both on individual farms and on the whole farming
sector in a region depends on the relationships between the different risk factors.
In the broader sense, correlation between risk factors can differ significantly
that affects the overall risk exposure of farm enterprises. When risks are not
perfectly correlated at farm level, total risk exposure will be less than the sum
of individual risks (OECD, 2009). Therefore it is important to consider that
relationships between risk factors allow the possible effects on farm income to
be determined more accurately and introduce risk management strategies more
effectively. However, in practice, calculating the effect and strength of the risks
and interaction effect of different risk factors may be highly complex.

It is important to consider how risk factors affect different farmers. Systematic


risks such as droughts, floods and price fluctuations which are specific to a
particular region or country are highly correlated within the group of farmers.
On the other hand, distinctive risks such as localized weather conditions (hail,
frost, etc) and personal risks (death, illness, theft, etc) are unrelated to the
farming community as a whole. They affect results only towards individual
cases.

Risks in agriculture are interconnected and is sometimes merging or sometimes


counteracting with each other. As an example, when production is declined due
to risk factors related to production, these risks can be partially offset by price
movements, if the prices of products are relatively high (OECD, 2011).

There are two major types of agricultural risk and factors influencing these
risks are different to each other (Huirne et al., 2000; Hardaker et al., 2004).
The first category is the business risk and it includes production, market,
institutional and personal risks. Factors affecting the production risk are mainly
unpredictable weather and unexpected outbreaks of pests & diseases. They

112
directly affect performance of crops and livestock. Market risk is related to
uncertainty about the price of outputs and, sometimes the inputs, at the time
production decisions are taken. Factors affecting the market risk are sudden
changes of markets, unusual changes of consumer behaviour, high fluctuations
of supply and demand and unexpected crisis on food safety in the supply chain.
Factors affecting the institutional risk are government actions and rules on food
production and distribution, regulations on use of agro chemicals as well as
tax provisions and payments. Factors affecting personal risks are uncertain life
events such as death, divorce, theft or illness. The second category is financial
risks resulting from different methods of financing the farm business. The use
of borrowed funds means that interest charges have to be met before equity is
rewarded which may create risk due to leverage. Therefore, factors affected on
financial risk are the rise of interest rates or non-availability of bank loans for
agriculture.

External

External factors effecting the risk of farming (both crop production and
livestock) are mainly influenced to the farming process from outside of the
farm. These factors are less controllable by the farmer. Nevertheless, farmer as
an individual or farming community can take measures to mitigate the effect
of these factors. Unpredictable weather is an external factor that cannot be
controlled by the farmers. Deficit or excess rainfall, extraordinary temperatures
(both high and low), strong winds, hail storms, tornados and such unfavorable
weather conditions to farming cause for adverse effects on farm production
and subsequently for total farm income and profitability. Other external factors
effecting the risk of farming are sudden changes of markets, unusual changes of
consumer behaviour, high fluctuations of supply and demand and unexpected
crisis on food safety in the supply chain, government actions and rules on
food production and distribution, regulations on use of agro-chemicals, tax
provisions and payments, rise of interest rates and non-availability of bank
loans for agriculture.

Internal

Internal factors effecting risk of farming mainly influence the farming process
from inside of the farm. Some of these factors are controllable by the farmers
and some are not. Unexpected outbreaks of pest and diseases are mainly within
the farming region. Reasons for pests’ and diseases’ outbreaks are different and
some of them are controllable by the farmers but some are not. Some of these
reasons are deforestation, destruction of natural enemies, intensive cultivation,

113
introduction to new varieties and crops, modern agricultural practices as
well as accidental introduction of pests and diseases from foreign countries.
Unexpected climatic conditions also cause some pests’ and diseases’ outbreaks.
Farmers incur large financial losses due to attacks from pests and diseases.
Therefore, this is a major risk faced by farmers and it needs measures to control
them and mitigate the effects.

Uncertain life events such as death, divorce, theft or illness are considered
internal risk factors in farming.

Risk management strategies

Risk management should not concentrate on only one risk factor or only one
solution. Diversification is a good strategy to reduce agricultural risk. Within
the normal risk layer, individual farmers are responsible and capable for
managing their own business risk. Farmers adopt various strategies to manage
risk affecting their production and income. These strategies depend on the
characteristics of risk they face, their attitude to risk and the risk management
instruments and tools available (OECD, 2009a).

There are four main types of risk management strategies available in the farming
literature.

They are financial strategies, marketing strategies, production strategies


and insurance. Other than the financial and marketing strategies, production
strategies such as diversification, geographic dispersion, variety selection,
timeliness, the use of cultural practices best suited to particular areas, etc.
are important ways to manage risk. Diversification has been one of the more
important and useful methods to reduce risk and uncertainty. The chance of a
large economic loss from a given hazard is reduced if there is more than one
enterprise in the farm business. However, enterprises included in the business
should not be subjected to the same hazards or at least not to the same degree,
if this strategy to be more effective in risk management (OECD, 2009b).

Agri-tourism as a risk managing strategy

Agri-tourism is an enterprise that can be introduced to diversify farm business


successfully. While agri-tourism is a mix of two major sectors- agriculture and
tourism, agri-tourism farms are not subjected to the same hazards faced by
agriculture only farms.

Agri-tourism is the practice of attracting visitors to an area used basically for


agricultural purposes. It attracts tourists to rural communities for a form of

114
relaxation that follows the growing trend of tourism that is both educational
and recreational. Also it is another option for farmers wanting to diversify
their farming operations that will bring more economic activities to rural areas.
Generally, the image of tourism stimulates of mass-produced travel that attracts
a large number of travelers. This image of mass tourism may discourage small
entrepreneurs who consider tourism as an alternative option for enhancing their
revenues. However, agri-tourism can be viewed as small-scale, low-impact,
education focused, recreational and more importantly compensating income for
agri-tourism operators who are mainly farmers.

Further, Agri-tourism is a direct marketing activity which provides additional


opportunities to farmers to reduce risks involved in farming via diversification
in a competing and urbanizing economic environment. While farmers get a
separate income from agri-tourism products that they sell to the visitors, they
are more riskless than expecting income from one operation that is merely
farming.

It can provide many benefits to the farmers:

► Supplementary income for the farmer apart from farming


► Continuous cash flow all around the year including the off-season
► Opportunity to sell products grown and harvested in the farmer’s
agricultural operation
► Opportunity to sell the “experience” of farmers agricultural venue
► Managing the risk in farming occurr due to uncertainties of production
and marketing
Products of agri-tourism

Classification of Agri-tourism products and services were described in chapter


five.

Types of Agri- tourism products

Agri-accommodation: Different types of farm accommodations are considered


as agri-tourism products. Farm accommodation is rated on the basis of standards
accepted internationally and is a good business decision for owner/operators
and their guests. According to the definition of a tourist, farm accommodation
is the real agri-tourism product. The definition of a tourist is “a person who is
supposed to leave his/her hometown (permanent place) on temporary basis for
the purpose of seeking new experiences, having fun & entertainment, doing
sports, seeing cultural & historical places (attractions) etc, on the condition that

115
she/he should stay not less than one day (including a night) and no longer than
12 months, make use of a tourist facility for accommodation and spend her/his
own money through their holiday” (Mahaliyanaarachchi, 2014).

Direct marketing: Other Agri-tourism products on the farm may include


the direct marketing of farm products at the farm gate or a farmers’ market.
Innovative ideas using farm-based products have the greatest potential to
earn the most money. Finding niche markets and expanding on these unique
opportunities can create the most rewarding and successful business ventures.

Different events on the farm, such as bee honey collection, U pickups, and
farm restaurants with out-door BBQs can be instigated as direct marketing.
Marketing niches such as water gardening supplies, herbal plants and products,
flowers and exotic plants and breeding exotic animals can be added as farm
based markets and require careful attention to constantly changing consumer
trends. These can be very profitable if developed in conjunction with other agri-
tourism products (Mahaliyanaarachchi, 2014).

Farm tours: Farm tours can be organized in many different fashions. There may
be just one farm hosting the tour, or a group of farms in a given area may be
included, providing the tourists with an overall idea about agriculture in the
area. Tours may be operated individually, where a family or group of people
may choose to participate in the tour on their own. Farm Tours can be operated
on a large scale, if tour operators include the farm tour into their tour package
in advance. A packaged tour may include a half a day or one day tour of a farm
and a processing plant so that the tourists will have a fuller understanding of
the food chain from nursery stage, planting and up to harvesting, processing
and marketing.

There are very good examples of this type of commercial farm tours in the
world. Coffee Tours in Tanzania, Banana Tours in Central America, Wine tours
in France, Whisky Tours in Scotland, Orange tours in Spain, Cinnamon Tours
and Tea Tours in Sri Lanka are some of them. Also joining with tour operators,
farmer groups can initiate various trails or driving routes, where a number of
similar enterprises can be seen along the route such as a Tea Route, Cinnamon
Route and Coconut Route (Mahaliyanaarachchi, 2014).

Use of agri-tourism products in managing risk in farming

There are only few studies conducted on farmers’ perceptions of the economic
benefits actually received from agri-tourism and its mitigating ability of the
effects of the risks faced by farmers. It has been observed that agri-tourism,
specifically farm-based accommodations is a “minor contributor” to the incomes

116
of farmers in southern Germany (Oppermann, 1995; Busby and Rendle, 2000).
However, past research confirms that agri-tourism development in the USA
and rest of the world is often motivated by socially, including fulfillment of
personal entrepreneurial goals, education of the public about farming, and
social interactions with guests (George et al., 2011; McGehee, et al., 2007;
Nickerson et al., 2001; Schilling, et al., 2012; Sharply and Vass, 2006; Weaver
and Fennell, 1997). However, improving farm income is generally a primary
motive behind the development of agri-tourism enterprises. George et al.,
(2011) observe a range of net returns across different types of agri-tourism
attractions, concluding generally that agri- tourism is a supplemental source of
income for most farms.

However, Schilling et al (2014) reveals that agri-tourism farms in small farming


category generate higher net cash returns per acre than their counterparts that
do not engage in agri- tourism. Similarly, operators of intermediate scale
farms and smaller farms operated by individuals with stronger occupational
ties to farming also appear to be finding success in agri- tourism. Further they
found that agri-tourism has statistically significant and positive effects on farm
profitability.

Agri-tourism requires a minimal additional investment and may utilize excess


capacity of labor, capital, land, and natural resources. Excess capacity may
allow farmers to increase the scope of activities. Promoting agri-tourism in
a farm or ranch is a revenue risk management strategy. Agri-tourism attracts
customers to farms or ranches. A pick your-own fruits or flowers enterprise or
a nursery activity will attract families. These activities provide exercise, lots
of fresh air, fresh food, fresh water, relaxation and something to take home
(Mahaliyanaarachchi, 2015).

For farming communities trying to diversify their economies due to less profits
and high risks, agri-tourism offers compensating income source that allows
a large financial range for capital expenditure, depending on how much the
entrepreneur wants to invest. On the other hand young people in rural areas
can start an agri-tourism enterprise in their farm land which will be their main
income source (Mahaliyanaarachchi, 2015; Brumfield and Mafoua 2002).

Further, agri-tourism will motivate and encourage farming communities to


raise their crops in an ecofriendly approach and to conserve the biodiversity of
farms which will minimize the internal risk factors of farming such as pest and
disease outbreaks, soil degradation, etc.

Research studies have shown that a well-developed agri-tourism industry


would result in a market mechanism generating additional income of US $251

117
to US $364 million annually in counties like Dominican Republic (Catalino and
Lizardo, 2004). Agri-tourism sector would improve sustainable agricultural
practices by maintaining and increasing positive externalities and nonmarket
services provided by agriculture. Agri-tourism products and services would
also have the added benefit of promoting sustainable agricultural practices.

This is a good option for farmers and planters who are willing to diversify their
farming operations that will help bringing more economic activities to rural
areas sustaining livelihoods of the rural people. In addition, agri-tourism not
only allows farmers to enjoy greater economic benefits through managing risks,
but also helps to remain the young generation of the farming community in the
rural areas instead of migrating to urban areas for better livelihoods.

Due to high risks they are facing such as production or yield risk, market or
price risk, regulatory risk, financial risk and personal risk, diversification of
income sources is the only alternative for farmers to stay in agriculture at small
and medium sized farms. One strategy to overcome these risks adopted by some
innovative farmers is adding agri-tourism as an alternative business in their
farms. This is another way to adding value to the crops and livestock grown
on the farm or ranch. It has a potential for building and expanding successful
relationships between agriculture and tourism industries. Getting back to the
agricultural and rural heritage roots and nature-based recreation experiences is
a major tourist attraction trend today. Many of the natural resource conservation
programmes in the agri-tourism farms and rural landscapes are cherished by
suburban and urban tourists both local and international.

Integrating agri-tourism into current agricultural crop and livestock production


is a way for a crop farm or a ranch to improve its income and grow livelihoods
of the rural community. This helps farmers to mange different agricultural
risks they face. A specific feature of agri-tourism is with relatively little initial
investment, a working farm or ranch can be converted to an agri- tourism
enterprise.

Positive aspects of agri- tourism in managing risk in farming

In terms of positive aspects, agri-tourism through green agriculture is a main


expectation of agri tourism promotion. The farmers tend to reduce agricultural
inputs from outside by means of organic farming or natural farming development
as tourists attractions. Hence, environmental and natural resources available in
the farm will serve as tourism resources instead of using for intensive agriculture
(Ceballos, 1996). This will help to conserve available natural resources for
effective management of agricultural risks faced by farmers. Farmers lose their
income due to any kind of agricultural risk and it is important that any solution

118
to manage these risks must compensate these income losses. Agri-tourism is
proven as a successful supplementary income source to the farmers (Schilling
et al., 2014; Catalino and Lizardo, 2004).

Negative aspects of agri-tourism in managing risk in farming

However, relationships between the farming and agri-tourism activities may


be competitive that may concern the use of agricultural resources of the
farm, i.e. land, human resource, infrastructure and capital. For instance, a
farmer growing commodity crops intend to develop agri-tourism activity has
to exclude a part of the area of land from agricultural production and use it
for agri-tourism ( Sznajder, et al., 2009). Nevertheless, some experts suggest
that even though agri-tourism is associated closely with rural environment,
in the business environment, tourist farms also provide agricultural resources
as accommodations and other facilities as other types of tourism business
(Halfacree, 1993).

Further, in terms of a tourism business model, it is a negative impact that most of


agricultural resources are used for tourism and in some cases, the development
of agri-tourism activities is not an increasing factor of agricultural productivity
(Brscic, 2006). Some researches reveal that the link between agri-tourism and
farming is getting weaker. In this view, farmers who engage in farm based
tourism as an alternative source of income to mange risks in farming slowly
dissociate themselves from agricultural activities (Busby and Rendle, 2000).

Risk management in agriculture is vital both for individual farmers and for
agriculture as a sector because higher risks threaten sustainability of the
agriculture sector and it results in the collapse of both micro and macro economies
in a country. Therefore, mitigation of effect of agricultural risks are important
for progress of the sector and it is an essential need to identify appropriate risk
management strategies to overcome these effects. Risk management should
not concentrate on only one risk factor or only one solution. Diversification
is a good strategy to reduce agricultural risk. Within the normal risk layer,
individual farmers are responsible and capable for managing their own business
risk. Farmers adopt various strategies to manage risk affecting their production
and income. Agri-tourism is an enterprise that can be introduced to diversify
farm business successfully.

It is observed that a range of net returns across different types of agri-tourism


attractions, concluding generally that agri-tourism is a supplemental source of
income for most farms. Therefore, we can conclude that agri-tourism can be
practiced as a successful risk management strategy in agriculture considering
the global experiences.

119
Agri-tourism to enhance the income level of farms

Unlike early days in the history, since 1960s, agricultural operations are no
more subsistence type farming even in the developing world. Today, farming
has become a business activity that provides wealth for the farmers to maintain
their livelihoods. There are various farm household income sources that can be
identified as farming and off farming activities. These various sources of farm
household income and wealth and their relative importance explain only part of
the “farm income problem”. In addition to the level of income and wealth, the
economic well-being of the farm household is influenced by variability in its
income which can obstruct its ability to maintain consumption and accumulate
wealth. Due to high risk of farming, income of the farmers is highly vulnerable
(Poon & Weersink, 2011).

Fluctuation of prices of agricultural products due to climate change, market


fluctuations, government policies, natural disasters and international & national
political reasons is inevitable. Then, a solution for farmers to cope with such
problems is the application of modern agricultural technologies such as agro
machines, improved high yielding crop varieties, agro chemicals, and inorganic
fertilizer that can enhance their income while reducing the cost of production.
However, these have been resulting in the pollution of environment, increasing
health hazards, and declining of agricultural resources (Thapa, 2009; Janaiah
et al., 2005).

According to Stewart (2001), modern agricultural practices driven by the


changes in consumer demands, profits, and technology have led to increased
commercialization of agriculture, decline in the number of farms, lower
commodity prices, less flexibility on the part of farmers in selling their crops,
and an overall reduction in farm income. These structural changes in agricultural
production lead to industrialization of agriculture and changes in agricultural
economies throughout the world (Welsh, 1996). The major objective of
introduction of these modern changers in agriculture that is increasing farmers’
income is hardly achieved. Accordingly, farmers look into additional income
sources by diversifying their farms into non agricultural activities for the
purpose of maintaining a reasonable level of income for survival (Fuller, 1991;
Oredegbe and Fadeyibi, 2009). Therefore, farmers have two main options of
diversification to increase their farming income. The first is that farmers have
the option of diversifying their income by engaging in off-farm employment.
The second is that farmers can diversify their income by using farm assets in
indirect farming activities.

In an attempt to compromise both direct and indirect farming activities, therefore,


the combination of agricultural activities and tourism services which termed as

120
agri-tourism is an important approach to rural development (Na Songkhla, and
Somboonsuke, 2012; OECD, 1994; Roberts and Hull,2001).

Income variance and reasons for income fluctuations of farming business

Agriculture is one of the most vulnerable businesses to both external and


internal factors and frequently leading to some form of production and market
failures that leads to income variances of the farmers. In most of the countries
in the world both developed and developing, agriculture is the most heavily
subsidized industry, yet despite the cost of the subsidy it fails to address many
issues relating to income variances of the farmers (Pettinger, 2014).

Prices in agricultural markets are often much more volatile than other industries
due to short term price inelasticity of supply, price inelasticity of demand, and
variation of supply due to climatic conditions. Good harvest leads to an increase
in supply and leads to a significant fall in price.

The problem of volatile prices is that:

► A sharp drop in price of the production leads to a fall in revenue for


farmers and bigger losses. Farmers could easily go out of agricultural
production due to unexpected glut in supply and prices can drop below
cost.
► According to the cobweb theory, prices can become stuck in a cycle
of ever-increasing volatility. If prices fall due to glut production,
many farmers will go out of production of the given crop or crops and
following year supply will fall. This causes price to increase of the
given crop or crops. However, this higher price acts as an incentive for
farmers to come back to the production and again creating a greater
supply. Therefore, next year supply increases and prices plummet again.
This vicious cycle will continue until proper solution is addressed by
the authorities.
► In some years, consumers can be faced with rapid increase in food
prices which reduces their disposable income (Pettinger, 2014; Poon
& Weersink ,2011)
Due to volatility of prices of agricultural products, farmers’ income is highly
variable and unpredictable. Risks faced by farmers in agricultural production is
higher than any of the rural economic activity. Farming activities are subjected
to a wider range of risks due to biological, physical and economic environment
in which farming operates. Most of these risks are specific to agriculture and
they affect the overall production and economic efficiency of the agricultural
production system. Further, these risks cause to fall of farm incomes, welfare of

121
agricultural workers with potential to constraint future investment and growth
of farm production (OECD, 2008).

Diversification of income sources in farming business

The broader variety of literature on off-farm income provides many insights on


farmers that are more likely to have off-farm income due to high variances of
on farm income. Therefore, good farm planning generally focuses on optimal
diversification with respect to risk and uncertainties of agricultural production
where the risk-management strategies address with production, marketing,
financial and environmental responses (Culas & Mahendrarajah, 2005).
According to the agricultural economics literature on farm diversification since
the early 1950s, the main purpose of diversification in agricultural production
and income generating activities is to reduce the risk of the overall income
of farms by selecting a mixture of activities that have net returns with low or
negative correlation. Thus, the aim of diversification of agricultural production
should be to find the risk-efficient combination of farming activities both direct
and indirect, not the one that just minimizes income variance (Hazell, 1971;
Thomas et al., 1972; Chen and Baker, 1974).

Risk management efficiency from farm diversification have been an empirical


matter to be resolved on a case-by-case basis and it is often found that these
gains are often less than what may be expected empirically due to a number
of reasons (Hardaker et al ,1997). Reducing the total income variance that
occurred due to different risks faced by farmers is done by practicing different
strategies.

► Grow more than one field crop to spread the work over a longer
planting and harvesting season
► Spread the risk over more than one enterprise (such as livestock), or
you may add value to a crop you currently produce
► Utilize farm resources to their optimum level. This may take the form
of custom planting or harvesting, storing grain for others, utilizing
existing labor or management abilities to their best advantage, or
introducing alternative income generating activities such as agri-
tourism
► Adding value to existing production. Farmer may have the expertise
within the farm or ranch operation to be able to make pies from fruit
crops, cider from apples, or direct market fruit or vegetable production.
Anything the farmer applies to increase the returns for production.
Farmer may add venture with agritainment or agri-tourism that gives
extra income without adding more resources (Kime, 2013).

122
Agri-tourism as an additional income source to the farming sector

Farmers can diversify their income by using two main approaches of income
diversification and seek alternative income. The first is that farmers have the
option of diversifying their income by engaging in off-farm employment. This
is a very common and easy method of income diversification. The second is
that farmers can diversify their income by using farm assets alternatively. Agri-
tourism, which constitutes non-agricultural practices on the farm, crosses these
two frontiers as it provides an attractive business opportunity to supplement
farm income (Oredegbe&Fadeyibi, 2009). As farmers diversify their income
by engaging in agri-tourism via alternative use of farm assets, they are moving
from a familiar territory( direct farming) to an unfamiliar one ( non farming- in
farm) and have to identify what the constraints are, which make challenges to
them (Oredegbe&Fadeyibi, 2009; Schmitt, 2010) .

Tourism industry has become the largest industry in the world at the end of year
2014 and in contrast, development of the agricultural economy over the past
three to four decades has been stagnant relatively to the faster development of
tourism economy (Tiraieyari & Hamzah, 2012; UNWTO, 2015; World Travel
& Tourism Council, 2015). Over the past years, tourism has proven to be a
surprisingly strong and pliant economic activity and a fundamental contributor
to the recovering economies in different sectors by generating billions of
dollars and creating millions of new jobs. International tourist arrival reached
1138 million in 2014 and UNWTO forecasts it will grow by 3-4 % further,
contributing to global economic development (UNWTO, 2015;World Travel
& Tourism Council, 2015). In this scenario, with the decline of productivity of
farms and eventually total agricultural production due to human, environmental,
climatic, technological and political factors, agri-tourism has been recognized
as an alternative activity to diversify the economic growth in agriculture sector.

Agri-tourism attracts tourists to rural communities for a form of relaxation that


follows the growing trend of tourism that is both educational and recreational.
It is another option for farmers wanting to diversify their farming operations
that will help bring more economic activity to rural areas. Agri-tourism is
an economic activity that occurs when agricultural products or services are
provided to the tourists. However, entrepreneurs will have to carefully research
and assess their situation with regards to location, human resources, marketing
and facilities both internal and external before starting agri-tourism farm as an
agri-business enterprise (Schilling et al., 2014; Mahaliyanaarachchi, 2014). It
was revealed from the research that most of the farmers expect higher economic
returns from agri-tourism to compensate for low agricultural returns without
the need to secure off farm employment, support multiple generations within

123
the farm family, or facilitate farm succession. This is common for the farmers
in any part of the world (Schilling et al., 2014; Fleischer and Tchetchik, 2005;
Veeck, Che, and Veeck, 2006; Barbieri, 2013).

Agri tourism is an economic and business activity which provides services and
agricultural products to the visitors on a profit. With increasing cost of production
of agriculture and tighter margins sometimes with excessive loses, farmers are
seeking new ways to diversify and add value to their agricultural operations
(Brščić, 2006; Schmitt, 2010). They should be able to utilize the human,
financial and physical resources in the farm effectively to be more competitive
and profitable. Therefore, farmers have to look for new business opportunities
other than traditional farming operations. However, their main income source
is agriculture and new business opportunities should be something that can be
coupled with agriculture. Hence, agri- tourism is a hybrid of agriculture and
tourism, as farmers may be able to practice it as a new business opportunity that
gives economic benefits (Jetté-Nantel et al., 2011).

On the other way, rural tourism operators who have an existing farm or a
cultivable land may practice agri-tourism as a new business opportunity.
Therefore agri-tourism can be operated as a business activity both by farmers
and rural tourism operators. Whatever the form of operation and whoever
the operator, agri-tourism is an agri-business. Agri-business is defined as
“the totality of all operations involved in the manufacturing of farm supplies,
production, operations on the farm, as well as processing and distribution of
farm commodities and items made from them” (Oliver, 2000) .

Accordingly, there is a growing interest in agri-business profile on agri-tourism.


It not only can help increase farm income, but also can promote and serve as a
sales outlet for both raw and value added agricultural products. Both agriculture
and tourism industries get benefits by developing agri-tourism as a business.
Agri-tourism as an agri-business that includes farm bed and breakfasts,
roadside markets, farm restaurants, petting zoos, fee fishing, pony or horseback
riding farm museums and various other agri-tourism products (Horn, 2004;
Mahaliyanaarachchi, 2015) .

For rural communities who are trying to diversify their economies, agri-
tourism offers an alternative that allows a large financial range for capital
outlay, depending on how much the entrepreneur wants to invest. Agri-tourism
enterprises create employment opportunities for family members, neighbors,
skilled youth, and supplement the farm income. One of the most rewarding
aspects of agri-tourism for many farmers is the opportunity to provide public
with a better understanding of what agriculture is really about. It is also an

124
opportunity to enhance the community’s economic potential. It enhances the
agri-business profile of agri-tourism as a profitable entity (Mahaliyanaarachchi,
2015).

Integrating agri-tourism into current agricultural crop and livestock production


is a way for a crop farm or a ranch to improve its income and grow livelihoods
of the rural community. A specific feature of agri-tourism is with relatively little
initial investment, a working farm or ranch can be converted to an agri-tourism
enterprise. It can begin by changing the production methods, interior design of
the farm house or making use of available natural resource of the farm. Finally,
it can be concluded that agri-tourism can practice as a supplementary income
source for small and medium scale farms and it can add substantial income to
the net income of the farms. However, agri- tourism is not an effective option to
increase the income level of the larger farms with wider production of crops or
livestock because their scale of agricultural production is very high.

125
Chapter Nine
Cases in Agri -Tourism

Costales nature farms in Philippines

T he Costales Nature Farms, located at the foothills of mystical Mt. Banahaw


in Majayjay, Laguna, Philippines is the premiere agri-tourism destination
in the Philippines. The farm tour packages at Costales Nature Farms cater to
anyone who wants to relax and experience farm life for a day or two and learn
the basics of integrated organic farming and enjoy the amenities of the farm.

This enterprise was established in 2005 by Mr and Ms Ronald Costales, and


today they are one of the major single producer of organic high value vegetables
and herbs in Philippines. The farm produces organic chicken, eggs and pork
available at Healthy Options, Shopwise and Rustan’s for those who wish to
lead a healthier lifestyle. Mr Ronald Costales and his wife Josie started this
farm as a family holiday destination, after the former gave up his high paying
job as vice president of a Telecommunication Company in Philippines.

Costales nature farms is the first agri-tourism farm approved by the Ministry of
Tourism in Philippines. It has become a favorite destination of visitors who are
interested in organic farming. In 2004, Ronald at his age 39, left his highly paid
job to become a farmer who grow organic vegetables, fruits and even organic
livestock.

He did not have any formal knowledge or experience in farming (nothing on


organic framing) but he had wisdom to attend every seminar that was available
in the country and neighboring countries. He started his farm with one hectare
and today, it has gone up to more than 10 hectares. The farm has cultivations of
lettuce, French beans, Japanese cucumber, sweet corn, eggplant, and culinary
herbs. There are 18 green houses and open field to cultivate crops. The farm
organize ½ day farm visits to 3 day seminars on organic agriculture.

Volume of visitors to the farm is around 3000 to 4000 persons. These visitors are
government workers, students, fellow farmers, private sector persons, farmer
leaders, businessmen, professionals, foreigners, and many others.

This farm and farm owner Ronald won the award for the most outstanding
organic farmer in Philippines.

Development Stages of the Costales Nature farms are as follows.

126
► Started as a private vacation farm
► Evolved into a commercial scale integrated organic farm
► Transformed into an agri-tourism destination
When it was in the status of a private vacation farm,

► No farm income
► High maintenance cost
► No productivity
So Ronald and wife decided to convert it to a revenue generating farm. Planning
stage to become a farming business was as follows.

► Defining the Unique advantage


► Must be organic, health and environment friendly farm
► Must be Sustainable
► Must be “closely integrated” to save on cost
► Must have continuous production (year-round supply)
► Capability building (training)
► Source of funds/capital investments
► Identifying the market
► Manpower requirement
For capability building (training) both owners and workers attended for local
and foreign trainings on organic farming.

At present, the farm cultivates 58 varieties of vegetables and herbs. As livestock


they have free range poultry-chickens, free range poultry-ducks, free range
poultry-turkey, organic pigs, rabbits and goats.

Then they decided to upgrade the farm as an agri-tourism farm. As the planning
stage of agri-tourism business they have paid attention on following aspects.

► Beautification/Farm Aesthetics
► Tour Packages
► Pricing
► Manpower requirement

127
► Farm activities
► Accommodation
► Food
► Amenities-SPA
► Outside farm activities
► Marketing
► Loading capacity
► Funding requirement
The “Farm Life Tour” starts when tourists arrive at the farm. They are welcome
with garlands to signify the importance of every visitor. After registering at the
reception, they are given welcome drinks (Fresh fruit juice harvested from the
farm). After the welcome drinks, tourists are directed to proceed to the pavilion
area for farm orientation. After listening to the 10-min video presentation about
the farm’s practices, guided farm tour follows. Farm tour guides lead the tour.
First stop is the VERMICULTURE area. This is the home of their composting
earthworms working hard to produce organic fertilizers. After meeting with
the earthworms, next is visiting Bogart’s family, organic pigs.After socializing
with the pigs, the next destination is the free-range poultry. The Rabbitry comes
next. Then visitors learn important tips about growing vegetables starting from
seeds & becoming seedlings. Visitors also enjoy the farm animal ride.

Then tour inside the green houses. Then, it is harvesting time. Fresh fruits are
available for u pickups. Then go for fishing at fish ponds,

The farm provides farm accommodation at farm houses made to the traditional
Philippines style. There is a souvenir shop in the farm.

Tour packages of the farm exist as given in the table.

Tour package Duration Target market

Foreign & local tourists –


Wellness Tour 3 Days, 2 Nights
Govt officials, Businessmen
Farm Life Tour Local & foreign tourist:
2 Days 1 Night
(BuhayBukid Tour) Wellness advocates, Families
Local: Schools, farmers, private
The Green Living tour 1 Day Tour
companies, Govt. agencies

128
Local: Schools, farmers,
The Salad Tour Half Day Tour
government employees
Field Trip Tour Elementary/High School/
2-hr Tour
(Lakbay-Aral Tour) College Students

Lake Serenity Farm Stay in Sri Lanka

The Lake Serenity farm stay is located at Kuruwita, Ratnapura in Sri Lanka. It
is established as a section of Lake Serenity Boutique hotel. Lake Serenity farm
stay is located about 89km away from the city of Colombo and 12km before
Ratnapura city by a small town called Kuruvita and further 2km away from
there.

It is a fine good example of a farm stay owned and managed by a private


entrepreneur. There are two farm houses especially designed for tourist
accommodation with the traditional Sri Lankan farm house outlook. The larger
house is named; “MahaGedara” and the smaller one is named; “Govigedara”.
The farm garden is around one hectare and mainly an orchard with more than 20
fruit verities such as mango, banana, rambutan, anona, kamaranga, pineapple,
cashew, jack fruit, mangustin, wood apple, ambarella, and many other local
fruits.

There is an herbal garden and vegetable plots around the farm houses. There is a
farm restaurant in the farm stay where the visitors can taste Sri Lankan cuisine.

Especially, visitors can experience a relaxing rural stay at this farm stay.
Further, the farm is operated as a totally organic farm. No artificial fertilizers
or chemicals are used for farming. There is a traditional kitchen in the larger
farm house where visitors can enjoy their own cooking with traditional cooking
methods using farm fresh vegetables which can be picked by the visitors.

Kahuku Farms in Hawaii

Kahuku Farms is a result of two farming families spanning back three generations
in Hawaii. Descendants of the Matsuda/Fukuyama families migrated to Hawaii
from Japan to work in the sugar plantations back in the 1900s. Shinichi and
Torie Matsuda started farming bell peppers, papayas, watermelon and bananas
in Kahuku back in the 1940s and were later joined by their son Melvin in the
the 1960s. During a similar time, Masatsugu and Nora Fukuyama, also of
Kahuku, were farming watermelon, eggplant, papaya and cucumbers and were
later joined by their son Clyde in 1965. Clyde and Melvin became longtime
friends and did several farming ventures together, one of which took them

129
to Australia where they both worked for a year growing watermelons. With
similar philosophies and goals, they both decided to merge the Matsuda and
Fukuyama Farms in 1986 creating Kahuku Brand. Kahuku Brand is a company
dealing primarily with growing and distributing Hawaii wholesale fruits and
vegetables.

Visitors can take a tractor-pulled wagon ride through one of Oahu’s most
beautiful farms on the North Shore and learn about the history, people, and
crops of this special place. There are two types of tours available in Kahuku
farms.

Grand Tour

Learn the history of Kahuku farm and discover all the fruits and veggies the
country has to offer. Ride through the commercial fields and see what it takes
for farmers to put fresh food on the local supermarket shelves.

Tours are offered Friday, Saturday, and Sunday at 2pm and typically lasts about
1 hour. It also includes a sampling of farm fruits.

Smoothie Tour

This is a 30 minute wagon ride of the farm to see where all the fresh Papaya and
Apple Bananas for their smoothies are harvested. It includes a yummy fresh
fruit Papaya Power smoothie.

Tours are offered every day except Tuesdays at 1pm only.

http://www.kahukufarms.com/

Dole Plantations in Hawaii

Dole Plantations was originally operated as a fruit stand beginning in 1950 and
opened to the public as Hawaii’s “Pineapple Experience” in 1989. Today, Dole
Plantation is one of Oahu’s most popular visitor attractions and welcomes more
than one million visitors a year.

Dole Plantation provides enjoyable activities for the entire family, including the
Pineapple Express Train Tour, the Plantation Garden Tour, and the Pineapple
Garden Maze. The informational displays and presentations, as well as the
plantation country shop offering a wide variety of Dole Plantation gifts, local
favorites, foods and refreshments including the world-famous DoleWhip are
also popular here. Visitors can also purchase fresh pineapples to take home.

130
Admission to the Dole Plantation grounds is free, and there are also plenty
of free activities, including a pineapple cutting demonstration and a fish-
feeding pond. For a more active pineapple adventure, a visitor can navigate the
Pineapple Garden Maze, ride on their Pineapple Express Train Tour, or explore
their Plantation Garden Tour.

https://www.doleplantation.com/

C HIENHU CHUANCHI Ecological Farm (CHCC) in Taiwan

C HIENHU CHUANCHI Ecological Farm (CHCC) in Taiwan is a tourism fish


farm and theme park combining rich natural resources, local fresh agricultural
specialties and the fresh cooking from the Water Nobel Restaurant inside the
park. To allow tourists to taste all kinds of gourmet and fresh fish nourished with
the clear water upstream the Sansha River, the CHCC has imported rainbow
trout, eel, emperor sturgeon, and paddlefish. With special cultured techniques,
the CHCC has successfully developed various value-added fish dishes, such as
the high mountain rainbow trout dishes which have juicy and sweet meat and
are highly nutritional; and the emperor sturgeon dishes which are tonics for
both the human body and skincare and can promote metabolism.

The CHCC also values the preservation of rare fish and thus preserves a wide
range of protected species in the park, such as the emperor sturgeon, local
fish, paradise fish (Macropodusopercularis Linnaeus), amphibians, etc. It also
displays various aquarium species in the tourism fish farm, making the CHCC
an ideal place for fish watching and fish ecology education. Groups can make
appointments in order to enjoy gourmet fish dishes, learn more about the ecology
of fish, and to leisurely wander in the touching world of nature. Other natural
resources in the vicinity include the Manyeuhyuan Fall, the Yuenshen Fall, the
Zonkon River, the Naa River, theCongken River etc. The CHCC provides a
wide range of activities, including fresh fish dishes, conferences, BBQ, creative
DIY, water game, trout fishing, river excursion, outing and hiking etc, to bring
tourists a soul trip of nature and ecology where they can see the freshness, taste
the gourmet foods, have fun seeing the beautiful scenery and enjoy the wonders
in nature.

The CHCC has a parking and Water Noble Restaurant The restaurant has a
space for 350 guests. They can either make single orders or choose any of our
set meals (NT$3500-$7000). Please make reservations in advance on holidays..
that has a space for 350 guests. They can either make single orders or choose
any of their set meals (NT $ 3500 - $ 7000). The farm has a conference room
with a space for 100-120 people and equipped with a presentation system. The
Supplies coffee and drinks, simple meals, snacks, waffles and delicate pastries..

131
Court Café and Drinks Supplies coffee and drinks, simple meals, snacks, waffles
and delicate pastries. They also offer f Tourism fish-farm guide and explanation,
fern plants explanation, bee ecology explanation etc..arm experience activities
such as tourism fish-farm guide and explanation, fern plants explanation, bee
ecology explanation etc.

http://www.fishfarm.tw/index_en.html

Dewalokam Kerala Homestay in India

Dewalokam is the ancestral farm of Alilakuzhy family who is an ancient Syrain


Christian family of Kerala located at Thodupuza, Kerala. The Dewalokam
Homestay has its organic farm and make visitors aware about the unusual trees
and plants, many of which have medicinal uses.

The word Dewalokam may be translated into “heavenly paradise”. The concept
of the Dewalokam Homestay is to retain the world as it was created by God,
full of fruits and vegetables, milk and honey all produced organically without
pesticides or chemical fertilizers.

The visitors can enjoy traditional Keralan cooking which is included in the price
of the stay. The area is tucked away beyond commercial rubber plantations
in a secluded haven. The homestay is bounded by a tranquil river and nature
reserve, where visitor can choose to be as active or as relaxed as they wish.

Dewalokam is in the midlands (spice belt) of Kerala, the centre of spices for
thousands of years. The farm has a rich collection of all spices like pepper,
nutmeg, cinnamon, cloves, cardamom, ginger, turmeric and so on. Actually,
this farm was not a tourist centre at all. Jose and Sinta, farmers by tradition
and teachers by profession, started taking in guests to stay with them, because
their elder brother Fr. Paul Alilakuzhy visited the family farm with his friends
in Germany. Soon, friends and family encouraged them to open the farm for
paying guests. 

http://dewalokam.in/Default.aspx

Komatsuzawa Leisure Farm in Japan

This farm is located in Yokosecho ,Yokozoe region, Chichibu, Saitamain Japan.


Komatsuzawa leisure farms, includes strawberries, grapes, shiitake mushroom
hunting, insect gathering, sweet potato · potato digging, grabbing mass and
playing for a day.

132
At the farm, visitors have sweet strawberries to taste them from December
to June in the year.Verities of strawberries that are available in Komatsuzawa
leisure farms are Tochome maiden, red cheeks and Yayoi Hime and they have a
good taste, good color, and good shape. The harvest situation fluctuates greatly
depending on the time. If strawberries are not in plucking stages in the farm
they introduce neighboring farms. With the entrance fee, a visitor can eat any
amount of strawberries for 30 minutes.

Visitors can taste sweet grapes from Mid-August to the end of November in the
year. Depending on the timing, verities of grapes such as Him Rot Seedless,
Honey Seedless, Kyoho, Oriental Star, Sekireietc are available for visitors to
eat.

Also, Veteran staff at handmade agriculture will guide the visitor to delicious
noodle making from powder. Further, visitors will learn planting fungi in the
tree, cut from Chichibu Mountain where delicious shiitake mushrooms grow
carefully in the natural woods. Also, beginning with fabric making, staff in
the farm teach carefully, including fermentation tail. It is a fully-fledged pizza
fabric using yeast and powder for pizza and bake up in a dedicated gas kettle
at once.

Another activity available in the farm is catching the favorite beetle in the
insect forest.Beetle collection can be done in ‘Insect Forest’ while natural mesh
without enclosure. A visitor can take home “Pair of beetles (male / female)”
and catch it. A popular person in summer vacation is the beetle insect. Summer
vacation is also advantageous for summer vacation experience coupons where
visitor can play various ways including beetles.

Fee Fishing is another interesting activity visitors can enjoy at the farm. Enter
the shabu-shabu in the river and grab the trout and the visitor can grab the trout
to burn with charcoal fire. Freshly baked is delicious. Visitors can have trout
fishing experience with a small fishing pond in a trout fishing farm. Visitors
can dig for sweet potatoes in the fields around Komatsuzawa Leisure Farm. It
can be used from early October to early November. Visitors can also try three
stocks and take it home.

They have rice cake making experience, bamboo dragonfly making and flying,
goats and cute ducks, Hammock house, baking facilities for freshly caught
rainbow trout and freshly picked shiitake mushrooms and tree planting.

http://www.komatsuzawa.co.jp/index.html

133
Banana Tour, Sarapiqui, Costa Rica

The purpose of banana tour is to show all how the world’s most popular fruit
is produced on a commercial basis, so that the visitor can see the tremendous
care given at every step of the operation to produce the best product for the
consumer, while minimizing the impact on the environment.

These Banana tours are organized to satisfy visitors’ interest in the banana
production process while in Costa Rica, a tour to banana farms which export
under the famous DOLE label has been established. The banana tour has been
operating in cooperation with local tour agencies for over 18 years, and has
hosted nearly 120,000 visitors.

The Banana Tour is currently offered in two Costa Rican farms. Bananito farm
is located about 20 minutes south of Limon. Zurqui farm is located in Puerto
Viejo de Sarapiqui.Zurqui farm have the following facilities designed to ensure
customer satisfaction;

The “Banana Tour” introduces the visitors to the world of bananas in a very
realistic manner. Standard Fruit Company de Costa Rica S.A. (which exports
under the Dole label) is recognized worldwide for its leadership in producing
environmentally and socially sound production systems and is a pioneer in
its employment of integrated pest management techniques, extensive worker
environmental and safety training and operation of a broad range of programs
and facilities for.

Zurqui farm has an extended roof attached to the packing plant. Up to five
buses fit at one time, protecting visitors from rain when entering and leaving the
tour area. Zurqui has conveniently located restroom facilities for the exclusive
use of visitors.

Zurqui has specially conditioned trails which connect the packing plant
with nearby areas of the banana plantation. From these trails, visitors see
demonstrations of agricultural practices. The trails are built in such a way that
the farm is able to host up to six groups simultaneously in the field, with more
groups viewing the packing process while waiting. Each group of roughly 25
people is attended by the Agency’s guide, who has previously been trained by
Banana Tour personnel.The two farms have ample parking areas for up to 10
buses at a time.

The trails are covered with gravel for comfort and safety, the foot bridges are
wide and have handrails. Zurqui offers demonstrations of agricultural practices
such as propping, bagging, harvesting, and packing, to allow visitors to see

134
the entire banana producing and packing process. In addition, the Agency
may request specially tailored presentations for groups whose members have
particular interests.

The visitor is offered with a wide variety of souvenirs for sale, with special
emphasis on items related to bananas and agriculture. These include banana
paper, banana dolls, banana and coffee liquor and banana hangers. Product
samples are offered as a complement to souvenir sales. These samples may
include fresh bananas, fresh coffee and other products. The Bananito farm offers
a tour somewhat different from that offered in Zurqui. The tour is designed
for cruise-ship passengers whom have less time. Visitors to Bananito have the
opportunity to visit a worker’s community. Visitors will see a well-planned
semi-urban complex which integrates worker focused housing, education,
commerce and conservation. Souvenir sales and product samples are offered in
the local gymnasium.

http://www.bananatourcostarica.com/index.html

Arusha Coffee tour in Tanzania

There are numerous coffee plantations around Arusha in Tanzania including


several attached to hotels. Typically a tour of a plantation (showing the visitor
the whole process from planting to making a cup) takes about 2 hours. Visitors
will visit nurseries, a plantation and the factory to see how the coffee is grown,
harvested, dried, and processed. At the end of the visit visitors will try coffee
harvested metres from where he sits.

Arusha has some of the biggest, most productive coffee plantations in East
Africa. Some of the factories still use very old machinery which guests are
encouraged to try for example sewing coffee sacks with a pedal powered sewing
machine or shoveling coffee beans into a manual grinder. This can be truly
memorable. Naturally, numerous types and grades of coffee can be purchased
to take home.

Ever wondered how the humble coffee bean goes from bush to your cup? Arusha
Coffee Lodge – one of the Elewana Collection of lodges, camps and boutique
beach hotels in East Africa – offers an exciting and informative ‘Coffee Tour’
for anyone who wishes to learn the fascinating cycle of the coffee bean.

The Tour takes place within the grounds of the Lodge, which itself is located
within one of Tanzania’s largest coffee estates. Weaving in and out of the
evergreen coffee bushes, the Coffee Guide explains how the bean is nurtured,

135
harvested, dried and finally roasted to produce a myriad of different blends that
sate the taste of the most ardent of coffee connoisseurs.

Get a taste of village life in Tanzania, sip local coffee and share lunch in a local
home on a 5.5-hour tour from Arusha to a community near Mt. Meru. Explore
the small village with the guide and visit the town’s coffee plantations to see
how the crop is cultivated, harvested and processed. Sample traditional cuisine
is at a family-style lunch, then finish the meal by roasting and grinding beans
for own perfect cup of Tanzanian coffee. Highlights; 5.5-hour small-group
walking tour of Tengeru village from Arusha to discover what life is like for
the local community of Tengeru Roast, and grind own coffee after a tour of the
village coffee plantation. Visitors can enjoy a delicious traditional lunch at a
local family home. Small-group tour is limited to 12 people to ensure a more
intimate community visit.

Visitors need to meet the most expert guide in central Arusha before catching
a local bus to the village of Tengeru, located just 20 minutes from the city,
in close proximity to the rugged slopes of Mt Meru. After arriving, visitors
have to stroll along the narrow village roads with the guide and meet some
of the local villagers as they go about their daily routines. Predominately a
coffee-growing village, Tengeru maintains its existence with small sustainable
farming projects, where proceeds are fed back into the community. Visitors
visit the fields and coffee plantation to discover how coffee and other crops are
farmed, to learn about the origins of coffee, how to plant and harvest it, and to
find out what it takes to get coffee from the fields and into the cup. They can
also enjoy a freshly prepared traditional lunch that is served for the visitor in
the home of one of the local families. After sampling the local delights, visitors
can put the newfound knowledge of coffee to test by roasting and grinding very
own beans. When done, they finish the Tanzanian village tour by tasting a cup
of own brew, before hopping back on the public bus to return to Arusha with
the guide.

Heritance Tea Factory, Sri Lanka

One of Sri Lanka’s most original hotels, the Heritance Tea Factory hotel,
Kandapola, Nuwra Eliya, Sri Lanka is built into and around a century old tea
factory and blurs the line between a museum and luxury hotel. Much of the
factory machinery is still in situ and has been incorporated into the design of
the hotel. Rooms are stately and plush, activities are numerous and the service
is first rate.

There are two different restaurants serving some of the best meals in the hills.
One of the restaurants is inside an old steam-train carriage, which still has its

136
whistle and kind of trundles along the line.

The family rooms, playground, pony rides and babysitting service make it a
good bet for those travelling with children. The Tea factory Hotel is a 30-minute
drive northeast of Nuwara Eliya, the highest mountainous city in Sri Lanka

Tea Factory offers colonial-style rooms with views of the surrounding tea
plantations and hills. It features a luxurious spa, tea-picking tours and a
restaurant set in a train carriage. Guests can work out at a fitness room or go for
a tea plantation nature walk. Massage and other treatments are offered at the
Misty Mountain Spa. Billiards and mini golf facilities are available.

There are numbers of activities such as tea tasting and tea tours organized by
the hotel for visitors which give them a very authentic experience in a tea estate.

Tea tasting is the process in which a trained taster determines the quality of a
particular tea. Due to climatic conditions, topography, manufacturing process,
and different clones of the tea plant the final product may have vastly differing
flavors’ and appearance. These differences can be tasted by a trained taster in
order to ascertain the quality prior to sale.

A tea taster uses a large spoon and noisily slurps the liquid into his/her mouth –
this ensures that both the tea and plenty of oxygen are passed over all the taste
receptors on the tongue to give an even taste profile of the tea. The liquid is then
usually spat back out into a spittoon before moving onto the next sample to taste.
The flavor characteristics and indeed leaf color, size and shape are graded using
a specific language created by the tea industry to explain the overall quality.

At Heritance Tea Factory hotel visitors are decked out in local attire – saree
for the ladies, sarong for the gentlemen – and provide with a basket in which
to collect tea leaves. Then visitors will be taken out to organic tea fields and
are taught of which leaves to pluck. Visitors will find that it takes a bit of
practice to make sure the leaves end up in the basket rather than on the floor!
Professional tea puckers will accompany with the visitors. Then visitors will
return to the Heritance Mini Tea Factory, where the chief tea taster will inspect
the visitors plucking standards. Then he will take visitors on a tour of the Mini
Tea Factory and explain the whole process, from the initial drying (withering)
of the leaves, through rolling, fermenting and sifting, to produce the different
types of tea.

As an ultimate holiday souvenir, the visitor can take home a packet of tea made
out of the leaves that he has plucked

137
Wild Thyme Organic Farm and Eco Retreat in Bulgaria

Wild Thyme Organic Farm & Eco-holiday is located at Kliment Ohridski,


Palamartsa, Popovo, Bulgaria.

Visitors can Visit the Balkans and experience a taste of life in the slow lane.  They
can have an authentic eco-friendly holiday on this organic farm in a peaceful
village in north Bulgaria.  Visitors can rent a homely eco holiday cottage and
have freshly baked bread and home-made jam delivered every morning for
breakfast.   This is a B7 B model accommodation.  

Visitors can spend time feeding pig, collecting eggs from the hens or taking the
goats to pasture.  Guests help themselves to organic fruit and vegetables from
the garden and there is a constant supply of fresh milk from the goats. Also
there is an opportunity to experience Bulgarian music, archaeology, and  taste
of farm life.

A stay in Palamartsa is a step back in time, where horses and carts pass outside
the window and visitors are woken by the sound of the village shepherd taking
the flock out to pasture.  Surrounded by rolling hills and an ancient landscape,
visitors can relax among folks still using traditional farming methods.  There
are many interesting places to visit locally and activities to enjoy.

The owners have sympathetically renovated a traditional village house into an


eco-holiday cottage powered by solar panels.  Its stone and mud plaster interior
gives it a natural and unique atmosphere.  They have tried to make this a truly
sustainable holiday home.

This is a small organic farm and grow a range of organic vegetables for them
and their guests.  Animals provide the farm owners with milk, eggs, manure
and meat. They avoid chemicals and use crop rotation, compost, animal manure
and green manures to keep their land fertile. 

In the farm there are a range of organic vegetables, soft fruit, fruit trees,
herbs, green manure, animal feed and flowers. They practice seed saving and
incorporate permaculture practices.  Operating on a small scale means that the
farmer is involved in every aspect of the work. An integrated system has been
created in which the animals eat waste, turn it into farm manure and create a
natural fertilizer for the garden. They also clear the land of weeds and cultivate
it in autumn and winter.

The Wild Thyme eco-cottage is solar powered and has a solar thermal water
system.  It sleeps 7 people (plus additional 2 on a sofa bed).  It is a traditional

138
Bulgarian house built using age old methods in stone and mud brick with a
timber roof.  The front and back have 1920’s art deco plaster work now fully
restored and painted in the original color scheme.  The house was used as a
tailor’s shop for many years with the family living on the first floor.

Downstairs, the old shop and barn now comprise an open plan kitchen, dining
area and living room.  The modern kitchen includes all necessary equipment
including a low energy fridge run from solar panels. The exposed beams and
mud plaster give this space an organic rustic feel. It is a comfortable place to
unwind and share meals.

Upstairs is the traditional wooden balcony providing the perfect place to take
cover from the heat of the summer sun. Visitors can enjoy a cool lazy afternoon
read while looking over the garden.   There are two airy and light double
bedrooms, a small single bedroom, the library and the family bathroom lead off
from the balcony. There is an additional double bedroom with its own bathroom
in a separate annex in the garden.  

As an eco-retreat, guests can experience of living a low impact low energy


lifestyle.  This means not only drawing energy from the sun, but also having the
choice of using an odorless no- flush compost toilet.

One of the barns has been converted into an outside living space.  Here visitors
can shelter from the midday sun shaded by an old walnut tree or use the BBQ
to cook own organic vegetables and meat from the farm. .

At this farm visitors can experience farm life, join with the framer in
seasonal activities such as making cheese, feeding the animals or learn to make
wine.

There are a whole range of stunning monuments and sites within a 90 minute
drive of Palamartsa, including the UNESCO World Heritage Sites.  

The area is known for its medieval rock monasteries. Of the 300 located in
and around local caves, Krepcha is the closest, 10km away.  The most famous
Basarbovo, the only working rock monastery in Bulgaria, and Ivanovo rock
monastery, a UNESCO World Heritage Site, are an hour’s drive away.  Carved
into hollows in high cliffs and accessed by narrow rock stairways, their striking
frescos are well worth the visit.

Visitors can enjoy wild swimming, try the fresh water reservoir at Razgrad with
a 30 minute drive away.  It has a beach and a beachside bar open from late June
to late August.  It’s also possible to wild swim in the river at Rusenski Lom
Nature Reserve.
139
Rajgad Farms in Maharashtra, India

Rajgad Farms are a perfect example of Agritourism blended with Ecotourism.


Rajgad Farms are beautiful in every single manner for a variety of reasons.
Well, the farms are surrounded by the hills that make the climate very cool
throughout the year. The availability of water for all the seasons keeps the
environment unbelievably green that is a pleasure for the eyes to watch.

Rajgad Farms has a natural habitat of green cover, and stations a perfect rural
atmosphere. You will be certainly carried away by the environment. The village
Damguda Aasani offers a breathtaking peaceful environment. There is a village
tour that has trees, farms, streams of clean water flowing, bridges, and many
other elements of nature that comprise of Agri-tourism. Rajgad Farms are near-
by to forts like Rajgad, Tornagad and Sinhagad, and these are one of the best
trekking places around Pune, Maharashtra.  

Rajgad Farms can be one of the best places for the Agri-tourism and Ecotourism
around Pune, Maharashtra.  Objective of Rajgad farms is to provide a natural
setting that can help people experience the environment to the fullest.

Rajgad Farms has a belt of mango trees. Farm resort owners are also engaged
in Vermiculture. They use a rainwater harvesting system in place for the water
conservation, and to make the best use of the rain water. Farm owners have
also installed solar lights to illuminate the Rajgad Farms and also installed
mechanisms to tap the solar energy. Their eco-friendly initiatives are taken to
protect the environment, and leave a positive impact on it.

The farm has dormitory rooms and bamboo cottages to further enrich visitor’s
experience. They provide a range of facilities at Rajgad Farms where people are
free to engage themselves. For all the sports enthusiasts, the farm has facilities
for Table Tennis, Cricket, and Snooker. The farm also has rain dance available.
They have specially made Rain Dance available at the venue.

The farm offers Tractor-safari that rides into the greens. Sight-seeing is one life-
time experience that visitors are likely to never forget. Kids do have different
levels of enthusiasm, and to take care of that they have arranged various indoor
segments like climbing, etc. at Rajgad Farms. They serve some great delicious
food.

With a combination of so many exciting elements, Rajgad Farms are one of


the best places around Pune for weekend trip or outing. It is also the best Agri-
tourism and Ecotourism destination for a holiday that you are likely planning
for. Rajgad Farms, one of the best farms for picnic near Pune, offers a range of
facilities that will enthrall the people visiting.
140
These are some facilities that this farm offers for their customers;dormitory
house, bamboo cottages, tree house, konkan type house, multi-purpose hall,
barbeque, sight-seeing, tractor-safari, rain-dance, net cricket, table tennis,
climbing for children, carom boards, trekking assistance, illumination by solar
lights, delicious food.

AgriturismoTenuta di Forte Sorgnanoin Italy

Tenuta di Forte Sorgnanoagri tourism farm is situated on top of the hills nearby
Assisi, Perugia, Todi and Montefalco in Italy. The farm extends over 200
hectares and it is dominated by the homonymous Castle, dated back to the 10th
century. The small Sorgnano’s village, which is located below the Caste, has
the history of a country life reality linked with the life of the lords of the Castle.
Today, the four farmhouses have become country houses that since fifteen years
are welcoming, in their comfortable apartments and charming rooms, guests
from all countries.

The farm consists of three houses. The main, an ancient farmhouse recently
restored 800, 2-bedroom apartments, the second house has 2 bedroom
apartments, 150 m from the pool, while the house hosts the restaurant and the
rooms.

All apartments are equipped with a satellite TV, fireplace, heating, refrigerator,
freezer, dishwasher, microwave, hair dryer and everything visitors need to cook.
The nice details respect the characteristics of these places. Chestnut beams,
tiles, brick of impruneta, rustic furniture and wrought iron are the key elements
of an elegant and rustic at the same time. All rooms are on the first floor of the
main house, are double rooms with bathrooms. Bright and welcoming, each has
dimensions of 20/25 square meters, with views of the grove and the surrounding
hills. The ground floor features a cozy reading room where visitors can relax
by reading texts in Italian and English. All rooms also have rustic and elegant
furnishings and thanks to the details in Umbrian style 800. They also feature a
private bathroom, TV, heating, hairdryer. The property features a playground
area and free wireless.

The farm covers 208 hectares, of which 180 acres are made ​​from wood, in which
you can find every kind of tree: oaks firs. The remaining 28 acres surrounding
the houses are home to an olive grove. These plants are maintained and pruned
only by expert hands and according to ancient tradition.

From olive produce such as an excellent extra virgin olive oil, within the farm,
visitors can also buy local products such as wine, grappa, vinsanto, pasta, truffle
sauces. The farm inside it offers many possibilities for those who want to relax

141
by taking a bit ‘of physical activity. Such facilities range from the swimming
pool to mountain bike, from table tennis to the possibility of walking along
the local trails and even a children’s playground, gym, football pitch in the
ground and to a farm with animals (goats, pigs, geese, chickens, rabbits, guinea
fowl, ducks etc.). Finally, a big barbecue with green space is available for tasty
moments outdoors. They are also provided, upon reservation (minimum number
required) cooking classes and wine tastings are in the area of the company can
be accessed on payment and booking to other factories for interesting and fun
sports such as fishing (7 km), horse riding (6 km), tennis courts (7 km).Still, there
is also the possibility of personalized services for a fee and by reservation. A
shuttle service is available to be used for the arrival and departure from Perugia,
Pisa, and Rome. A Personal Driver can be made available to guests who will
accompany them everywhere; Personal Tour Guides help guests discover the
beauties of Umbria. Here, guests can take advantage of special discounts in
local shops, to buy typical Umbrian products.

142
Bibliography
Akpinar N, Talay I, Ceylan C,Gundus S (2005). “Rural women and agrotourism
in the context of sustainable rural development: A case Study from Turkey”.
Environment Development and Sustainability, 6(4):473- 486.

Barbieri, C. (2013), “Assessing the sustainability of agritourism in the US:


A comparison between agritourism and other farm entrepreneurial ventures”,
Journal of Sustainable Tourism, Vol. 21, pp. 252-270.

Bernardo, D., Valentine, L., & Leatherman, J (2007), Agritourism: If we


build it, will they come? Retrieved May 25, 2014, http//: www.uvm.edu/
tourismresearch/agresearch.html

Blacka, A., Couture, P., Coale, C., Dooley, J., Hankins, A., Lastovica, A., et
al.,(2001). Agri-Tourism. Virginia Cooperative Extension

Brščić K. (2006), The Impact of Agrotourism on Agricultural Production,


Proceedings from the First International Conference on Agriculture and Rural
Development Topusko, Croatia, November 23-25.

Brumfield, R. G., & Mafoua, E. K. (2002). Agric tourism as income based


risk management strategy for greenhouse and nursery producers [Electronic
Version]. Rutgers cooperative Extension, New Jersey Agric Experiment station,
New Jersey. Retrieved 13.06 2014 from http://www.linkbc.ca/torc/downs1/
agritour.pdf?PHPSESSID=dfb8c15b25bcbfb9345baa5d0781d05f

Business dictionary, http://www.businessdictionary.com/definition/market-


positioning.html

Butler R., Hall M., Jenkins J., (1998) “Tourism and recreation in rural areas”,
Wiley, Chichester

Chen, J. and Baker, C. (1974), “Marginal risk constraint linear programme for
activity analysis”, American Journal of Agricultural Economics, Vol. 56, pp.
622-627.

Culas, R. and Mahendrarajah, M. (2005), Causes of Diversification in Agriculture


over Time: Evidence from Norwegian Farming Sector, 11th Congress of the
European Association of Agricultural Economists August 24-27.

Ceballos-Lascurain H (1996). Tourism, Ecotourism and Protected Areas. Gland,


Switzerland IUCN – The World Conservation Union.

143
Degan D., Agro touristic service quality strategy in Romania (Ph.D thesis),
(2011) Bucharest, pp. 21

de Kadt, E. 1990, Making the Alternative Sustainable : Lessons from


Development for tourism, Discussion Paper 272, Institute of Development
Studies, Brighton, pp. 1-21.

Fleischer, A. and Tchetchik, A. (2005), “Does rural tourism benefit from


agriculture?”, Tourism Management, Vol. 26, pp. 493–501.

Fuller, A.M. (1991), “Multiple Job-holding Among Farm Families in Canada”.


In M. C. Hallberg, J. L. Findeis, and D. A. Lass (eds.) Multiple Job-holding
Among Farm Families. Ames, IA: Iowa University Press, pp. 31-44.

Gartner W.C., (1987) “Environmental impacts of recreational home


developments”, Annals of tourism research, Volume 10. No.2

Hall CM, Jenkins J (1998). The policy dimensions of rural tourism and
recreation, in Butler. C.M. Hall and J. Jenkins (Eds.), Tourism and Recreation
in Rural Areas. Chichester: John Wiley and Sons. 19-42.

Hatley, L. (2009). The nature of agritourism in the Buffalo City Municipality.


Cape Peninsula University of Technology, South Africa, Cape Town

Hron J, Srnec K (2004). Agrotourism in the context with the rural development,
.Czech University of life Sciences Praque”, Electronic document, Retrieved on
10.06.2014, from http:// www.czu.cz

Janaiah, A., Otsuka, K. and Hossain, M. (2005), “Is the productivity impact
of the green revolution in rice vanishing?” Economic and Political Weekly, Vol.
40 No. 53, pp. 5596-5600.

Keith, D. R., E., George, H., Lobo, R, Tourte, L and Ingram, R. (2003). Obstacles
in the agritourism regulatory process: Perspectives of operators and officials in
ten California countries. Retrieved 10.06.2014, from http:// www.aic.ucdavis.
edu

Kuhen, Diane and et al., (1998), Consideration for Agricultural Tourism


Development” Newyork Sea Grant

Lobo, R. E., Goldman, G. E., Jolly, D. A., Wallace, B. D., Schrader, W. L., &
Parker, S. A. (1999). The flower fields in Carlsbad, is a popular agritourism
attraction in San Diego County. Retrieved 10.06.2014, from http:// www.
backyardnature.com
144
Mahaliyanaarachchi R P (2014), Agro Tourism, Department of Agri Business
Management, Sabaragamuwa University of Sri Lanka

Mahaliyanaarachchi, R.P. (2015), “Role of agri tourism as a moderated rural


business”, Tourism, Leisure and Global Change, Vol. 2, p. TOC- 193.

Malkanthi SHP, (2012) , Assessing Agritourism Potential For Rural Development


In Sri Lanka, Ph D thesis, Asian Institute of Technology, Bangkok

Mathieson A., Wall G., (1992), “Tourism: economic, physical and social
impacts”, Longman, London

McCabe Scott, (2005), “Who is Tourist” A critical review, tourist studies, Vol
5 (1), 85-106

Mieczkowski Z., (1995), Environmental issues of tourism and recreation,


University press of America, Maryland.

Na Songkhla, T. and Somboonsuke, B. (2012), “Impact of agro-tourism on


local agricultural occupation: A case study of Chang Klang district, southern
Thailand”, Journal of Agricultural Technology, Vol. 8 No. 4, pp. 1185-1198.

Neate S., (1987), “The role of tourism in sustaining farm structures”, Aldershot,
Avenbury

Oliver R, (2000), Development of Agribusiness Enterprises, Report of the


APO Seminar on Development of Agribusiness Enterprises Indonesia, 20–24
November 2000, Asian Productivity Organization, Japan

Oredegbe, A. and Fadeyibi, I. (2009), Diversification into Farm Tourism,


International Conference on Regional and Urban Modeling, Ottawa.

Organisation for Economic Corporation and Development (1994), Tourism


Strategies and Rural Development. Paris. OCDE/GD (94) 49.

Organization for Economic Corporation and Development (2008), An


assessment of risk exposure in agriculture: A literature review. Part of the Trade
and Agriculture Directorate project on Risk Management in Agriculture.

OTA. (1992). Southeastern Rural Mental Health Research Center, University


of Virginia, Madison House, 170 Rugby Road, 22903 Charlottesville, Virginia

Page J., Getz D., (1997), “The business of Rural tourism”, Thomson Business
Express, London

145
Prichard W., (1992), “Changing the essence, the art of creating and leading
fundamental change in organizations”, Jossey-Bass, San Francisco

Relf.P D (1998), People-Plant Relationship in “Horticulture as Therapy” 21-


42,: The Food Products Press. New York

Richards G., Hall D., (2000), “Tourism and sustainable community


development”, Routledge, New York

Rilla, E. (1999). Bring the City & County Together. California Coast and Ocean.
Vol. 15, No. 2. 10p.

Reid D., (1991), “Sustainable development, an introductory guide”, Earthscan,


London

Rutgers Cooperative Extension, New Jersey Agricultural Experiment Station,


Rutgers

Smith, V.L. & Eadington, W.R. 1992, Tourism Alternatives: Potentials and
Problems in the Development of Tourism, Univeristy of Pennsylvania Press,
Philadelphia.

Scialabba N, Williamson D (2004). “The Scope of Organic Agriculture,


Sustainable Forest Management and Ecoforestry in Protected Area
Management”. Environment and Natural Resources, Working Paper No. 18,
FAO

Smith V., Wilde P., (1977), “The multiplier impact of tourism in Tasmania”,
Sorret, Melburne

Sznajder M, Przezboarska L, Scrimgeour F, (2009), Agritourism, CABI


International, Oxfordshire, UK

Thapa, G. (2009), Smallholder Farming in Transforming Economies of Asia


and the Pacific: Challenges and Opportunities, Discussion Paper Thirty-third
session of IFAD’s Governing Council, 18 February 2009.

Tiraieyari, N., Hamzah, A. (2011), “Agri-tourism: Potential opportunities for


farmers and local communities in Malaysia”, African Journal of Agricultural
Research, Vol. 6 No. 31, pp. 4357-4361.

Toyoda M, (2012), Horticultural therapy in Japan -History, Education, Character,


Assessment-, Journal of Agricultural Development, June, Vol 2, 51-65

146
Weber, K. (1997). The Assessment of Tourist Satisfaction Using the Expectancy
Disconfirmation Theory: A study of the German Travel Market in Australia
Pacific Tourism Review, 1, 35–45

Vincent J.A., (1980), “The political economy of alpine development”,


Sociologia ruralis, 20 (3-4)

Virginia Cooperative Extension ( 2001), Agri Tourism, Virginia poly technic


and state university

World Travel & Tourism Council, (2015), Travel & Tourism Economic Impact
2015 World

147
148
Rural Tourism Attractions Around The World

Halong Bay Tourism Area, Vitenam

Halong Bay Tourism Area, Vitenam

149
Rural Tourist Attractions, Laos

A Highly Tourist Attracted Buddhist Temple in Laos

150
Tourists Attraction as River Boating in Laos

Tourists’ Attraction as River Boating in Laos

151
Sinoux Coffee Resort in Vientiane, Laos

Rural Laos

152
Farm Restaurant in Japan

Tea Bathe in Japan

153
Farm Tourism in a fruit farm in Taiwan

Fruit Plucking Experience

154
Mahayan Buddhist Temple in Vietnam

Tea Tourism in Taiwan

155
Lake Seranity Farm Stay in Kuruwita, Sri Lanka

Lake Seranity Farm Stay in Kuruwita, Sri Lanka

156
157
About the Author

Professor Rohana P Mahaliyanaarachchi completed his


secondary school education at the Royal College, Colombo
07. He was an alumni of Agricultural University, Plovdiv, Bulgaria. He
completed his Ph.D from Postgraduate Institute of Agriculture, University of
Peradeniya , Sri Lanka. He commenced his career as an Assistant Regional
Manager (Extension) in 1987 at the Tea Small Holdings Development
Authority of Sri Lanka. He has joined the Sabaragamuwa University of
Sri Lanka as a Senior Lecturer in 1997 to pursue an academic career and
progressed to the capacity of Senior Professor of Agribusiness Management.
He was holding administrative positions right through at the Sabaragamuwa
University and progressed to the post of Vice-Chancellor in 2005.

His experience in agri tourism and rural tourism is more than 12 years. He
was the author of two monographs of Agri Tourism and number of journal
papers published in peer reviewed journals. He is a consultant of agri and
rural tourism both local and overseas.

ISBN 978-955-644-054-6 Department of Agribusiness Management,


Faculty of Agricultural Sciences,
Sabaragamuwa University of Sri Lanka
PO Box 02, Belihuloya, Sri Lanka. 70140.
158 View publication stats

You might also like