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Hedonic Pricing Evaluation on Agritourism Activity in Italy: Local Culture-based or Facility-based?

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  • Ohe, Yasuo
  • Ciani, Adriano
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    Abstract

    This paper focused on how and what diversified activities influence the price level of agritourism. A hypothesis that contrasts two directions was examined: facility-based and local culture-based activities. First, from the conceptual consideration, we defined that agritourism based on local cultural resources can internalize positive externalities, which are accompanied by local cultural resources, into income, unlike facility-based activity that has no connection with local cultural resources. Second, the results of estimations from the price determinant ordered logit model clarified that owning a swimming pool was the most common and influential factor in enhancing the price level while regional diversity was observed in terms of local cultural resource-based activities such as restaurants, world heritage sites and DOC wines. These findings indicate that hardware-based evolution is more effective in the short term than evolution based on software aspects. Nevertheless, this hardware-based evolution of agritourism is implicitly based on the assumption of continuously growing demand and sufficient financial capability for the fixed investment. When growth in demand becomes stagnant, facility installation can be a heavy burden on operators. Consequently, for the sustainable development of agritourism it will be necessary to harness locality to create a balance between facility-based services and local culture-based services.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 116th Seminar, October 27-30, 2010, Parma, Italy with number 95210.

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    Date of creation: 27 Oct 2010
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    Handle: RePEc:ags:eaa116:95210

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    Related research

    Keywords: agritourism; local cultural heritage; hedonic pricing; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Food Consumption/Nutrition/Food Safety; Labor and Human Capital;

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    1. Isabel Vanslembrouck & Guido Huylenbroeck & J. Meensel, 2005. "Impact of Agriculture on Rural Tourism: A Hedonic Pricing Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 17-30.
    2. Belletti, Giovanni & Burgassi, Tunia & Manco, Elisabetta & Marescotti, Andrea & Pacciani, Alessandro & Scaramuzzi, Silvia, 2007. "The roles of geographical indications (PDO and PGI) on the internationalisation process of agro-food products," 105th Seminar, March 8-10, 2007, Bologna, Italy 7851, European Association of Agricultural Economists.
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