Success Factors in the Development of Farm Vacation Tourism

Farm vacation tourism allows many families to fully use their domestic resources; furthermore it generates social benefits for the surrounding community. We have conducted a study to examine the success factors of this type of tourism. The results clearly demonstrate that one of the key components relies on the entrepreneurial skills of the farmer. Problem statement and objectives: A high level of uncertainty has for many years characterized the world agricultural market. In this unpredictable environment rural tourism remains one of the few viable economic options for rural communities (FESENMAIER et al. 1995). Although in some cases the generated profit is only a small-side income (OPPERMANN 1996) the social value of farm vacation tourism displays a variety of qualitative benefits both for farmers and for guests. As a mutual learning experience (INGRAM 2002), farmers share their abilities with guests and affirm, in this way, their role as loyal partners in the food chain. At the same time customers recall their memory of the past (a past of more genuine food and of forgotten tastes) and rediscover their traditions. Scientists have been analyzing factors for success for almost 40 years (GRIMM 1983, SCHMALEN et al. 2005) due to the fact that such studies can help entrepreneurs to develop useful strategies for their businesses. The purpose of our study is to examine the success factors of farm tourism. For this reason we conducted an empirical survey on the panorama of German farm tourism and we extrapolated the factors that have helped rural entrepreneurs to successfully develop this type of business. The results clearly demonstrate that the principal component for the success of farm tourism relies on the entrepreneurial skills of the farmer. Current research in farm tourism: A great deal of interest has been focused on the area of motivations of farm tourism hosts and guests. On the supply side a plethora of literature has stated that besides the economic reasons, such as additional income, also social ones, such as companionship with guests, motivate both organic and conventional farmers to diversify their activities and enter into this business (MCGEHEE & KIM 2004, NICKERSON et al. 2001, WILSON et al. 2001). On the demand side customers often choose this type of tourism as a means to escape from the city (PUTZEL 1984, NICKERSON et al., 2001); furthermore there is also a strong motivation of seeing children learning from farm activities (INGRAM 2002). Generally speaking rural areas still have a special appeal because of the mystique associated with them (WILSON et al. 2001). Since recent studies have pointed out that the average customer who buys on the farm can hardly distinguish between organic and conventional farmers (NIESSEN & HAMM 2006), we think that the former can find in farm tourism a good opportunity to educate guests on the main features of the organic market. Department of Agricultural Economics and Rural Development, Georg August University, Platz der Goettinger Sieben 5, 37073 Goettingen, Germany, [email protected] In the following part of the study we use the abbreviation farm tourism 9. Wissenschaftstagung Ökologischer Landbau. Beitrag archiviert unter http://orgprints.org/view/projects/wissenschaftstagung-2007.html Procedure: Since our purpose was to discover the key factors for the success of farm tourism we carried out an empirical analysis. As a starting point we chose the study of WILSON et al. (2001). This analysis adopts a qualitative method (in-depth interviews with focus groups) and has a community approach, which means that farm tourism is considered within its local economic context. The implication for policy makers is to support the whole community around the farm facility in order to generate multiple effects and positive externalities (e.g. the preservation of regional traditions and local food variety). In the study of Wilson et al. many indicators of success were taken into consideration in order to represent the multidimensionality of this type of tourism: attraction, promotion, tourism infrastructure, services and hospitality. Nevertheless tourism entrepreneurs and their role in fostering these components have been left out. In our analysis of success factors however we do include the entrepreneurs’ skills and we use both qualitative and quantitative indicators for success within a quantitativeconfirmative approach (Fig. 1). We conducted an on-line survey in the state of Lower Saxony, in the north Midwest of Germany, based on a comprehensive approach, which looked at both quantitative (e.g. number of beds) and qualitative (e.g. self judgment of success; planned investments) variables. The questionnaire was filled in by 103 farmers with a response rate of 23.6%. The majority of farm facilities is located in the most attractive areas of Lower Saxony: the so called Lüneburger Heide (34% of farmers) and the north-east region of Nordseeküste, Ostfriesland and Cuxland (29% of farmers). On average farmers offer 18.2 beds. Results: For the data analysis we first adopted a principal components factor analysis in order to create a success factor (index). In the second step we differentiate this factor into very successful, less successful and least successful clusters (Fig. 2). By means of a variance analysis of passive factors we interpreted these success groups. The respondents of the first group judge themselves as very successful. This self estimation was confirmed by the number of nights their beds are occupied each year (occupancy rate). The respondents of group one performed well with an occupancy rate of 204 nights whereas group three only had 77 nights (group two: 135 nights). When asked if they would invest further in farm tourism, the respondents of the first group mainly agreed (mean=1.25) compared to group two (mean=0.41) and group three Regular guests Quality of the hospitality