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Economic Values of Agritourism to Visitors: A Multi-Destination Hurdle Travel Cost Model of Demand

Author

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  • Rebecca Hill

    (Department of Agricultural and Resource Economics, 305-B Clark Building, Colorado State University, Fort Collins, CO 80523, USA)

  • John Loomis

    (Department of Agricultural and Resource Economics, Colorado State University Fort Collins, CO, USA)

  • Dawn Thilmany

    (Department of Agricultural and Resource Economics, Colorado State University Fort Collins, CO, USA)

  • Martha Sullins

    (Colorado State University Extension, 1525 Blue Spruce Drive, Fort Collins, CO 80524, USA)

Abstract

Farm-based recreation, or agritourism, is growing in the USA, raising new interest in the potential benefits for consumers/travellers and communities. This study utilizes a hurdle travel cost model to investigate the demand for and economic benefits of agritourism. The analysis includes an estimation of consumer surplus as one means to estimate the market size for this sector. The standard travel cost model assumes a single-purpose recreational trip; but, as is the case with a number of categories of tourism, this assumption may not hold for all agritourism outings as travellers often visit other destinations. This paper analyses and compares four different models, each using different methods to distinguish between multiple-destination and primary-purpose trips. The findings reveal that consumer surplus ranges from $93 to $164 per person per trip for primary purpose travellers. Implications for accurately estimating the market size of agritourism, as well as a broader set of recreational sectors, are discussed.

Suggested Citation

  • Rebecca Hill & John Loomis & Dawn Thilmany & Martha Sullins, 2014. "Economic Values of Agritourism to Visitors: A Multi-Destination Hurdle Travel Cost Model of Demand," Tourism Economics, , vol. 20(5), pages 1047-1065, October.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:5:p:1047-1065
    DOI: 10.5367/te.2013.0323
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    References listed on IDEAS

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    1. Michael D. Creel & John B. Loomis, 1990. "Theoretical and Empirical Advantages of Truncated Count Data Estimators for Analysis of Deer Hunting in California," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 434-441.
    2. Loomis, John B. & Yorizane, Shizuka & Larson, Douglas M., 2000. "Testing Significance Of Multi-Destination And Multi-Purpose Trip Effects In A Travel Cost Method Demand Model For Whale Watching Trips," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(2), pages 1-9, October.
    3. Gascoigne, William & Sullins, Martha & Thilmany, Dawn D., 2008. "Agritourism in the West: Exploring the Behavior of Colorado Farm and Ranch Visitors," Western Economics Forum, Western Agricultural Economics Association, vol. 7(2), pages 1-13.
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    Citations

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    Cited by:

    1. Jones, Thomas E. & Yang, Yang & Yamamoto, Kiyotatsu, 2017. "Assessing the recreational value of world heritage site inscription: A longitudinal travel cost analysis of Mount Fuji climbers," Tourism Management, Elsevier, vol. 60(C), pages 67-78.
    2. Anthony Amoah & Peter G. Moffatt, 2017. "Estimating demand for reliable piped-water services in urban Ghana: An application of competing valuation approaches," University of East Anglia School of Economics Working Paper Series 2017-01, School of Economics, University of East Anglia, Norwich, UK..
    3. Xiaowen Jin & Hao Wu & Jing Zhang & Guangming He, 2021. "Agritourism Development in the USA: The Strategy of the State of Michigan," Sustainability, MDPI, vol. 13(20), pages 1-14, October.
    4. Matthias Firgo & Dieter Pennerstorfer, 2023. "The causal effect of agritourism on farm survival," Economics working papers 2023-15, Department of Economics, Johannes Kepler University Linz, Austria.
    5. Van Sandt, Anders & Thilmany, Dawn, 2016. "Exploring the Economics of Agritourists: Customizing Travel Cost Methods to Evaluate Differences Across the Western US," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236142, Agricultural and Applied Economics Association.
    6. Anders Van Sandt & Dawn Thilmany McFadden, 2022. "Navigating the corn maze: Customizing travel cost models to value market segments in heterogeneous industries," Tourism Economics, , vol. 28(4), pages 899-919, June.
    7. Jan Zawadka & Anna Jęczmyk & Monika Małgorzata Wojcieszak-Zbierska & Gniewko Niedbała & Jarosław Uglis & Joanna Pietrzak-Zawadka, 2022. "Socio-Economic Factors Influencing Agritourism Farm Stays and Their Safety during the COVID-19 Pandemic: Evidence from Poland," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    8. Michał Roman & Piotr Grudzień, 2021. "The Essence of Agritourism and Its Profitability during the Coronavirus (COVID-19) Pandemic," Agriculture, MDPI, vol. 11(5), pages 1-25, May.
    9. Van Sandt, Anders T. & Costanigro, Marco & Thilmany McFadden, Dawn D., 2017. "The Impact of Consumer Heterogeneity and Surrounding Amenities in Determining Traveler Behavior: A Choice Experiment on Agritourism," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259118, Agricultural and Applied Economics Association.

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