Relevance: GS-3: Agriculture.

Key Phrases: Triple Bottom line Approach; important factors in sustainable businesses and the development paradigm; a niche and an emerging market segment; Eco-friendly tourism experience; address the ‘hollowing out’ effect of rural decline; Land consolidation through cluster-based farming or One District One Crop services;

Context

• The Triple Bottomline Approach of Planet, People, and Profit seems to be one of the best approaches in sustainable businesses and the development paradigm.
  • Proper policy attention and implementation toward Agri-tourism fulfil these criteria.

Key Highlights

Present Scenario

• Agri-tourism is a niche and an emerging market segment of the tourism industry.
  • The global market was valued at $42.46 Bn (2019 )
  • It is expected to reach $62.98 Bn by 2027 (CAGR of 13.4% 2020-2027).

What is Agri-tourism and what is its status in India?

• Agri-tourism is a non-urban hospitality product.
• It serves an agrarian lifestyle, culture, and heritage with abundant natural resources.
• As per the 2019 Business Economics report, revenue from agri-tourism is growing at an annual growth rate of 20% in India.

Why agri-tourism & What can it offer to farmers?

• Rising demand for natural and rural destinations as tourist attractions
  • This is due to rapid climate change, tourism induced pollution levels and GHG emissions.
  • Eco-friendly tourism experiences such as agri-tourism can help meet such demands.
• Addressing challenges of agriculture
  • India’s agriculture has been under stress due to
    • increased input costs,
    • volatile returns,
    • climatic adversaries,
    • land fragmentation, and so on.
  • As per World Bank’s 2021 report: Despite agriculture being a mainstay of the economy, farmers have shifted to other industries for alternative livelihoods and income diversification.
  • Agri-tourism can address the ‘hollowing out’ effect of rural decline and restore farmers’ confidence in agriculture and ecosystem-based services.
  • It provides income-generating activity for farmers and strengthens the economic, cultural and ecological resilience of rural regions.
• Fulfils triple bottom line approach
  • Agri-tourism serves a dual purpose of
    • supporting the incomes of farmers (People and Profit) and
    • creating novel tourism forms for tourists (Planet and Profit)
  • Since it addresses People, Profit and Planet, it contributes to economic, social, and environmental dimensions of sustainability.
• Brings a positive attitudinal change toward farming
  • Agri-tourism acts as both a promoter and inhibitor to changing farmers’ attitudes toward farming.
    • Promoter - Use the land which would have been left fallow.
    • Inhibitor- Prevents farmers to cultivate, and instead uses the portion of land for tourism activities.
  • Once this becomes a lucrative income, it will help to reduce disguised unemployment in agriculture
  • Agri-tourism brings value propositions to various business segments.

Characteristics of Agri-tourism

• Its market is split into
  • activity,
  • sales channel,
  • and region/spaces

Activity Segment

• This categorises this market into
  • on-farm sales,
  • outdoor recreation,
  • agritainment
  • educational tourism, and so on
• Based on activity, the on-farm sales segment accounted for a 57.9% share of the pie.

Sales Channel segment

• This segment bifurcates into
  • travel agents and
  • direct
• The travel agent segment held a 67.5% share.
• Physical evidence, people and process as essential determinants of service marketing can affect agri-tourism sales destinations.

Region-wise segments

• This includes
  • North America,
  • Europe, and
  • Asia-Pacific including India, Latin America, the Middle East, and
  • Africa.
• The North American region held a 38.7% share in 2019.

Policy attention needed

• Greater policy attention in developing countries is a must, especially in countries where the populace is either directly or indirectly dependent on agriculture.
  • To address perpetual adversities like
    • uncertain cash flow,
    • recurring debt trap and
    • unpredictable climate,
  • agri-tourism can be promoted as an important alternative.21`
• The survey indicates that tourists prefer to visit agri-tourism centres with a larger area and multiple fun and recreational activities. This contrasts with the very purpose of agri-tourism which is to support small and marginal farmers.
  • Land consolidation through cluster-based farming or One District One Crop services can be helpful in this regard.
• Social/ impact investors can mobilise private equities into agri-tourism based on the stage of the business and the business model adopted by Agri-preneurs.
• The Agri Tourism Development Corporation can attract start-ups and impact investors to harness the business potential of the agri-tourism landscape in India.

Conclusion

• An enabling environment is required for agri-tourism to thrive and have a 15-20% share in the tourism industry. The Union Budget 2023-24 can increase allocations for such green ventures.

Source: The Hindu BL

Mains Question:

Q. What is Agri-tourism? What are its benefits from the perspective of Indian Farmers? What steps can be taken to popularise it?