John Day River Territory November 2010

Agri-Tourism DevelopmentWorkshop

• David Beurle• Juliet Fox • Kristin Dahl

Agri-Tourism Development Workshop

Program Overview:

• What is Agri-Tourism – market segments• Global and macro trends and impact• Case-studies; the good, the bad and the ugly• Potential in JDR Territory?• Local issues and constraints• Business and industry planning• Where to from here?

A reality check….

• Agri-Tourism can be successful and rewarding.• But -there are more failures than successes in

Agri-Tourism – why?– Survival motivation– Lack of required skills – Limited scale and capital – Poor understanding of sophisticated market– Lack of coherent strategy and cohesion

• Rural Tourism Studio very important.

The source of observations and case-study material

• A series of international study tours and site-visits

• Work in North America• Travel Oregon’s long history

and expertise in Tourism

Agri-Tourism – a framework

What is it Agri-Tourism?

Technically; “the act of visiting a working farm or any agricultural, horticultural or agribusiness operation for enjoyment, education, or participation in the activities of the farm or operation”

Also; (and importantly); connecting your farming operation and ‘products’ to a tourism operation or related regional retail outlet.

But; people are less likely to travel to JDR Territory for just an agri-Tourism experience; more likely to be attracted by a ‘package’ of tourism opportunities.

What are you selling?

• Experiences– Connection to nature / rural / outdoors– Romantic / Healthy / Quiet / Adventure– Educational / Learning

• Goods– Food (local and retail)– Specialty products (oils / soaps)– Crafts /Artifacts / Art

Where do you sell it?

• Farm based destination– ‘Value-add’ occurs on farm.– experience and goods only available ‘on-site’.

• Regional / community destination– ‘Value-add’ occurs in regional context – somewhere

in region or associated with region.– Experience and goods available in off-farm locations;

but strongly connected to rural / agricultural context – generally only available within the specific region.

Agri-Tourism product matrixFarm Destination Regional destination

Experience •Farmstay / B&B / Spa•Farm Events (tulips)•U-pick/ harvest•Working farm holidays•Farm / Ranch education

•Festivals / Events •Regional food /cuisine•Food and wine trails•Gourmet treks •Culinary schools

Goods •Wines and oils•Organic / fresh foods•Arts and crafts•Roadside stalls

•Farmers markets•Regional retail branding•Specialty outlets•Food baskets

Pros and ConsFarm Destination Regional destination

Experience •On-farm issues – liability and people in house•Potential restrictions on activities•Often personality based and time demanding – in competition with mgt time•Can be rewarding

•Lot of work; complex organization; but big premiums•Difficult to quantify direct benefits•Subject to volatile economy •Large scale – requires collaboration •Discerning customers (fussy)•Build off other assets in region

Goods •Can be difficult to extract premium (except with capital intensive iconic wines /oils•Potential for saving out of value chain (cut out steps)•Easy to control reputation

•Can be expensive to support•Chance of failure is higher•Quality and consistency are key issues•Difficult to compete with big chains and alliances

Macro Trends – a quick scan

Global trends in agriculture

• Emerging power of retailers – access to unique consumer information and control over supply chains

• Farm gate cost-price squeeze is universal.• Globalization removing most trade and investment

barriers. • Fewer larger players exerting more control over the

food chain.• The role of Government is changing – less support but

more regulation in areas of food safety

What does this means for Agri-Tourism?

Shifts in societal values

• Concern about global climate change• Emerging new generational values• Health consciousness increasing – USA lagging• Desire for experienced-based activities• Stronger environmental awareness• Growing disconnect between urban and rural• Impact of economic meltdown

What does this means for Agri-Tourism?

Increasing consumer awareness

• Increase in demand for organics• Debate about GM (and bans)• Re-examination of food systems- energy costs• Slow Food movement – alternative perspective• Mad cow disease – altered trust factor• Food recalls – contamination concerns (China,

USA)What does this means for Agri-Tourism?

Agri-Tourism in JDR Territory

Group Discussion One

Case Studies around the world

Success and failure

Hyden – Western Australia

Rural tourism – built around ‘Wave Rock’

• Small scale and locally driven• Retains authentic farming town feel• Diverse businesses that are largely sideline to

farming operations• Celebrates farming heritage

www.waverock.com.au

Lessons for JDR Territory Agri-Tourism

Group Discussion Two

Small team work sessions

Group Discussion Three