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According to a research report published by Extrapolate, the global agritourism market is expected to be valued at USD 118.63 billion by 2032 from USD 62.49 billion in 2022, growing at a CAGR of 6.6%.
Healthy growth has been driven by increased government focus on promoting rural tourism and supporting farm sales to boost the local economy. Notably, North America remained the dominant force in the market, accounting for more than 45% of the market revenue share.
Agritourism is a rapidly growing segment of the tourism industry that involves combining agricultural practices and experiences with leisure activities. This market has received a lot of attention recently as tourists increasingly seek authentic, sustainable and eco-friendly experiences.
grants and loans
In line with this, many countries have implemented policies and initiatives to promote and support the development of agritourism. In addition, the United States Department of Agriculture (USDA) provides a variety of grants and loans to support agritourism, including rural business development grants, value-added producer grants, and farm service agency loans to diversify farm operations.
Zurab Pololikashvili said: “The global travel industry is on track to return to pre-pandemic levels by the end of the year. By investing in people and projects that make a difference, we can unlock the industry’s potential to deliver growth and opportunity for all.”, United Nations Secretary-General of the World Tourism Organization. “Agritourism provides farmers and rural communities with multiple sources of income. These include direct sales of produce, fees for farm tours and events, educational workshops, accommodation and catering services,” he said.
Government funding and support
Governments around the world have recognized the value of agritourism and have implemented various programs to support its growth. Some notable projects driving the global agritourism market include:
· EU Rural Development Program: This program provides financial support for the development of agricultural tourism facilities and services in rural areas, with a total funding of 100 billion euros (108.38 billion US dollars) in 2014-2020. The program was extended to 2022 with an additional 35 billion euros in funding.
· The United States Department of Agriculture (USDA)’s Agritourism Program provides funding, technical assistance and marketing support to agritourism businesses. In May 2022, USDA invested $770 million to expand business opportunities in rural areas.
URB, a leading developer of eco-friendly urban spaces, will partner with the UAE government to build the world’s largest agritourism destination, Agri Hub, in Dubai. This pioneering project aims to create more than 10,000 jobs and foster a green economy within the city. A pioneer in sustainable urban development, URB’s ambitious efforts will make Dubai a premier agritourism hotspot.
Domestic Tourism
Domestic agritourism is expected to continue to generate the highest market revenue and to be a promising avenue for sustainable rural development. Furthermore, research by Extrapolate reveals the growing interest of locals in exploring rural lifestyles, farming techniques, and other related outdoor activities such as horseback riding and camping, which is contributing significantly to the growth of the segment.
In addition, domestic tourists are also attracted by local culture and traditions. This in turn presents an opportunity to support the local economy. For example, the growing popularity of the farm-to-table trend, where visitors can participate in activities such as picking fruit and vegetables, milking cows or making cheese, adds value to the agritourism experience.
Over the past few years, governments across the globe have begun to address the challenges farmers face in terms of infrastructure, training and marketing in order to fully exploit the potential of domestic agritourism. To this end, they began promoting rural tourism, providing financial support for infrastructure development, and developing training programs for farmers. Hence, many urban consumers are attracted by these events across the globe, further supporting the growth of the segment.
farm sales
According to Extrapolate’s analysis, the farm sales segment will hold the second largest market share in the global agritourism market after outdoor activities by 2022 and is expected to maintain its position in the coming years. Also, this segment offers farmers higher profit margins as it eliminates intermediaries or distributors.
According to a USDA study, farmers who participate in agritourism earn an average of 33% more per unit of production than those who sell through traditional channels. Additionally, selling directly to consumers allows farmers to benefit from the growing interest in local produce. This trend has resulted in an 86 percent increase in the US farmers market between 2008 and 2021.
Selling directly to consumers provides farmers with a competitive advantage and diversifies their income streams through the sale of value-added products and agritourism experiences. The study found that agritourism businesses that sell directly to consumers derive the majority of their revenue from diversified sources by offering value-added products such as jams, jellies, baked goods and agritourism experiences such as farm tours, pick your own and farm experiences – to Dinner table.
North America will generate over 45% of sales
According to the United Nations World Tourism Organization’s September 2022 World Tourism Barometer and Statistical Supplement, tourism in North America increased by 103% between January and July 2022 compared to 2021.
Thus, North America remains the largest market for agritourism, generating more than 45% of the global market revenue. The growth of the North American agritourism market can be attributed to several factors such as strong government support, changing lifestyles, growing focus on sustainable farming, and growing sales of agricultural products.
Furthermore, direct-to-consumer sales are expected to contribute the highest revenue to the North American agritourism market. This includes sales through farmers markets, community supported agriculture (CSA) programs and other direct sales channels. This trend also supports the growing demand for locally produced food and the desire of consumers to connect with the source of their food.
competitive landscape
Agritourism is a rapidly growing sector of the tourism industry, attracting tourists interested in experiencing rural life, farming and farm-to-table experiences. With increasing demand for agritourism experiences, the market has become highly fragmented and dominated by regional players.
However, the agritourism market is expected to become more competitive in the coming years as more players enter the market. The growth of the agritourism market has attracted the attention of more established players in the travel industry, including hotels, tour operators and tour operators, who are starting to offer agritourism experiences as part of their packages. — trade arab news agency
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