Agri-tourism is a Rs 4,100 crore opportunity. Are you ready to hit the village trail?
For Sunil Bhosle, a farmer in the Jogwadi village in the Baramati taluk of Pune district, a 13 acre piece of land tilled by his entire family round the year meant an annual income of Rs 60,000-75,000. This was before he was exposed to the benefits of agri-tourism six months ago. Bhosle, with the help of the Agri Tourism Development Organization (ATDO), opened his farms to tourists in June last year, charging each Rs 300-350.
He has since welcomed 150 tourists with traditional garlands and authentic Maharashtrian delicacies. The effort translated into an additional income of Rs 15,000, after deducting an equal amount in expenses. He is now constructing two more rooms for tourists.
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In the first year of operations, between October 2005 and October 2006, 8,700 tourists visited farms pooled in by villages in Baramati. The influx grew to 17,000 in the second year. Since October 2007, more than 21,000 tourists have taken the rural trail.
Old ways, new ideas
Agri-tourism is all about unraveling various facets of village life. This includes opening up farms to tourists from cities and abroad, and letting them spend some time in the lap of nature. Apart from telling them about the various crops and how they are sown and harvested, agri-tourism exposes tourists to authentic food, handicraft, dress, culture, music and language. Tourists get to indulge in rural activities such as bullock-cart rides, milking cows and goats and picking farm-fresh fruits and vegetable. The activities may vary from village to village, as a country as diverse as India has so many different experiences to offer.
Agri-tourism activities can help generate more jobs in rural areas, and thus reduce large-scale migration from villages to cities. Two-thirds of India’s population lives in villages, and agriculture is their mainstay. But unfortunately, unlike IT, agriculture is facing under-investment. So here is a chance to marry the benefits of agriculture with those of tourism.
“India has a global edge in its potential to offer unique experiences, particularly linked to rural India, which has tremendous wealth in its rich tradition, lifestyle, culture and wisdom. Unfortunately, tourism in these areas is at a nascent stage and it can therefore absorb much of the necessary expansion in the tourism sector as a whole,” says Tushar Pandey, Country Head, Strategic Initiatives – Government (SIG), Yes Bank. The private-sector bank is bullish on the prospects of agri-tourism in several states, particularly Uttar Pradesh. It is partnering with CII to study the potential of agri-tourism in Uttar Pradesh. The study is likely to be presented to the state government soon.
The Central Government has a scheme on rural tourism, as part of which various activities, such as improvement of infrastructure, are being conducted in a big way. The focus of the scheme is to tap the resources available under different schemes of the Department of Rural Development and state governments.
Setting up an agri-tourism farm doesn’t cost the earth. It can be developed in a village where farmers are willing to showcase their culture and traditions. All one needs to set up is a decent boarding and lodging facility for tourists. It is important to have a clean place and hygienic food. The spend on travel, food and accommodation is low and so it is easy to scale up the number of tourists they can receive.
| DARE/estimates | |
| Number of foreign tourists who visited India in 2007 | 50 lakh |
| Number of domestic tourists in 2007 | 40.6 crore |
| Total number of tourists in 2007 | 41.1 crore |
| Say, 10% of tourists are game for agritourism | 4.11 crore |
| Tariff from one tourist for a day | 500 Rs |
| Say, each tourist stays for | 2 days |
| Earning from each tourist | 1,000 Rs |
| Estimated size of opportunity | 4,100 Rs crore |
“To make arrangements for 12 tourists, for whom you need to build four rooms, costs approximately Rs 5 lakh,” says Taware. (See Table 2: Money Matters)
A Rs 4,100 crore opportunity
The tourism sector is one of the major foreign exchange earners for the country. In 2007, 50 lakh tourists visited India, up from 44.5 lakh in 2006. Correspondingly, the foreign exchange earnings grew 33% to over $12 billion, compared to $9 billion in 2006. According to estimates, 40.6 crore domestic tourists criss-crossed the length and breadth of the country.
| DARE/money matters | |
| Number of foreign tourists who visited India in 2007 | 4 |
| Size of one room | 180 sq ft |
| Cost of constructing one room | 400 Rs/sq ft |
| Cost of furnishing one room | 300 Rs/sq ft |
| Total cost of one room | 1,26,000 Rs |
| Total cost of four rooms | 5,04,000 Rs |
| Earnings | |
| Say, 10 tourists visit the village for | 104 days/year |
| 104 days/year | 500 Rs |
| Gross earnings | 5,20,000 Rs |
| Expenses | |
| Monthly spend on food, electricity etc | 15,000 Rs |
| Annual spend on food, electricity etc | 1,80,000 Rs |
| Loan repayment of Rs 5 lakh | 1,50,000 Rs |
| Total spend | 3,30,000 Rs |
| Net Earnings per year | 1,74,000 Rs |
So, presuming that 10% of the total number of tourists may consider visiting various farms across the country during the year, the number would be close to 4.1 crore. Each person stays for about two days, and the tariff is Rs 500 per day. Thus the size of the opportunity is a whopping Rs 4100 crore!
Agri-tourism is now growing in a big way. However, it may take some time before it starts to grab a major share of the revenue generated from tourism-related activities. “In the initial stage, we expect only a marginal contribution, but in the long-term perspective of 10-12 years, we expect rural tourism to contribute about 7-10% of the total revenue generated from tourism and close to 10-15% of the total jobs in the tourism sector,” says Pandey.
There is a huge scope of developing various pockets of agri-tourism in the country, as India is a country of extreme diversity. “There is a saying in India that with every 12 miles you cross, the water changes, the culture changes and the food habits change. So at every 12 miles there can be an agri-tourism project!” says Taware.
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I need advice on how to make tie up's with tourism companies to promote my farm house in agri tourism
written by nriindian, January 17, 2010
In the next few years, there will be a lot of campaign on how Indian villagers desperately need help and how poor is the yield and can not cater to the needs of the public. Then, there will be argument about privatization agricultural lands which will be "profitable" to farmers and finally before they realize it will all be gone.
Think again.
written by rajpawan thapak, January 06, 2010
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written by Pandurang Taware, October 16, 2009
pandurang taware
98220 90005
Director
ATDC - Baramati ,India
written by raju c, September 13, 2009
CAN I MAKE IT A AGRI TOURISM DESTINATION.
CAN ANY ONE PLEASE SUGGEST
written by Pradeep Pachpatil, April 18, 2009
Should he apply for his farm house permission and where and with whom.
written by KARAN, February 03, 2009
written by dayanand, September 02, 2008
I DAYANANDA FROM KARNATAKA STAYING IN BANGALORE. I GO THROUGH ABOVE ARTICAL IT IS VERY NICE PLAN AS WELL AS GOOD DIVERSIFICATION IN AGRICULTURE.I COMPLETED MY MASTER DEGREE FROM AGRICULTURE NOW I AM INTERESTED TO BECAME A ENTREPRENEUR RATHER THAN INTREPRENEUR SO SUGGEST ME WHICH AGRICULTURAL ENTERPRISE IS GOOD AND IT INCLUDES MODERATE RISK TO CARRY.
THANKING YOU
DAYANANDA
econ_daya@yahoo.co.in
09008762389
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