Synopsis. Critical Study of Agritourism Industry in Maharashtra

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1 Synopsis On Critical Study of Agritourism Industry in Maharashtra By SHRIKRISHNA GULABRAO WALKE FACULTY OF MANAGEMENT Submitted In fulfillment of the requirements of the degree of Doctor of Philosophy to the SYMBIOSIS INTERNATIONAL UNIVERSITY, PUNE July, 2013 Under the guidance of PROF. DR.MANOHAR INGALE Professor, Royal University of Bhutan Gaeddu College of Business Studies, Gedu (Bhutan) 1

2 THESIS CERTIFICATE 1. The thesis entitled Critical study of Agritourism industry in Maharashtra submitted to the Symbiosis International University (SIU),Lavale, Pune, for the degree of Ph.D. under the faculty of Management is based on my original work carried out under the guidance of Prof. Dr.Manohar Ingale from August 2010 to July The research work has not been submitted elsewhere for award of any degree. 2. The material borrowed from other source and incorporated in the thesis has been duly acknowledged and /or referenced. 3. I understand that I myself could be held responsible and accountable for plagiarism, if any, detected later on. 4. The list of publications and the copies of respective certificates of the research papers published during the period of study are appended. S.G.Walke Research Scholar Prof.Dr.Manohar Ingale Research Guide 2

3 Table of Contents Chapter No Description Pages 1 Introduction 1 Introduction of the topic Introduction of Agritourism Rationale of the study Problem Statement Research Questions and Objectives Hypotheses development on Agritourism Scope of the study Limitations Expected Contribution Outline of the Study 2 Literature Review 9 Agritourism Definitions Basic Principles of Agritourism Relation between Agriculture and Agritourism Agritourists Satisfaction 3 Research Methodology 11 Research Design Research Activities Instrument Development Sources of Data Data collection Methods of Research Sampling Plan and Sampling Method Data Analysis 4 Findings 18 Findings based on survey of Agritourism centers Findings based on Tourists Survey 5 Conclusions 25 6 Suggestions & Recommendations 29 7 Bibliography 34 8 Research Papers: Presented and Published 37 3

4 1. Introduction Introduction of the topic: As per the census 2011 data, population of India is 1.21 billion. It means it has increased by 870 million since independence. India s accounts for 17.5 % of the world s population, whereas it has an area of 3,287,240 sq. km i.e. only 2.4 % of the total surface area of the world. The Agricultural land is getting divided and subdivided per generation which has increased the number of marginal farmers and low land holders (Agriculture Census Report ). Rising input costs, decreased yields, poor agriculture commodity prices are becoming responsible for declining agriculture income and profit. Pressures due to globalization and industrialization are threatening the existence of agriculture. This is forcing farmers to look for additional income via job or business so as to sustain their household income. Worldwide scenario states that, farmers across the globe are recognizing the need and desire to diversify their farm products and services to supplement their agriculture income. Farmers across Maharashtra have a good opportunity to diversify their agriculture business into Agritourism so as to increase the sustainability of farming by offering value added products and services to the farm tourists. In today s era of liberalization and globalization travel and tourism is extensively recognized as an important civil industry worldwide which provides major potential for economic growth and development. For many developing countries it is one of the main sources of foreign exchange income and the number one export category, creating much needed employment and opportunities for development. In over 150 countries tourism is one of the five top export earners, and in 60 it is the number one export category. (India s 12 th Five Year Plan Report, 2011) In India, total contribution of travel and tourism to GDP was INR 5,651.0 bn (6.4% of GDP) in 2011, and is forecasted to rise by 7.8% p.a. to INR12,891.2 bn in It has been also mentioned in WTTC Report, 2009 that India will be a tourism hot-spot from the year 2009 to 2018 having the highest 10-year growth potential. The 12th Five Year Plan prepared by the Planning Commission highlights the need to adopt "pro-poor tourism" for increasing net benefits to the poor and ensuring that tourism growth contributes to poverty reduction. Tourism plays a key role in socio-economic progress through creation of jobs, enterprise, infrastructure development and revenue earnings. The Planning Commission has identified tourism as the second largest sector in the country in providing employment opportunities for low-skilled workers. 4

5 Travel and tourism in India is getting a massive impetus due to globalization and opening of economy to the world. India's travel and tourism industry is the second highest foreign exchange earner for the country and according to an estimate total direct employment in the tourism sector is around 20 million. (Confederation of Indian Industry Report, 2011) As discussed in the Maharashtra s Agro industrial policy Report 2010, Maharashtra is a bio-diverse state with nine Agro-climatic zones and varying soil types suitable for agricultural development. Though Maharashtra is a highly industrialized state of India, agriculture still continues to be the major livelihood earner for the people of the state. Agriculture and allied activities contribute nearly 12% per cent to the State s income, although 55% of the population is dependent on agriculture. In Maharashtra the travel and tourism industry including transport, storage and communication trade, hotels and restaurants accounted for around 20-22% of the GSDP and 3.5% of the state s employment.( Patil Usha,2011) In 1987, the World Commission on Environment and Development (WCED) defined the concept of sustainability with respect to development, as developments which satisfy the needs of present generation without compromising the needs of future generation. Likewise, sustainability of farm indicates a similar meaning, i.e. the long term stability via farm income over the period which will take care of the farmers of one generation to other. Maharashtra is among the leading producers of a variety of agricultural products enjoyed by residents in the state and beyond. Rural families are mainly engaged in farming and to some extent in agri-related businesses. Because of many affecting factors such as unpredictable environment and more unpredictable crop yield, fluctuating market rates for agricultural goods, unawareness of technology, unexpected and huge expenses, government rules and regulations etc., farmers income is not consistent. In Maharashtra, farmers are embracing the death through suicide due to their disappointing earnings. Agriculture faces significant challenges in responding to the changing global agribusiness milieu. Due to the decreased incomes in agriculture in the last few decades, farm diversification is recommended as one tactic for survival of business. Because of technology today, farming has become more advanced than ever before. Because of lack of economies of scale, small-scale farmers have been thrown out of the farming partially or completely and forced to search for business other than farming as 5

6 alternative sources of revenue. Now, some of the Maharashtrian farmers have considerably changed the range of products and services they provide in response to changing demographics, consumer preferences, so as to enhance farm viability. Urbanization is increasing day by day all over India and also in Maharashtra. Maharashtra is the third most urbanized state in the country. The state has % urban population, which is much higher than the national average of 31.16%. Out of total population of 11,23,72,972 in the state, rural and urban distribution is 6,15,45,441 and 5,08,27,531 respectively.(census Data 2011). Jane Eckert (2006) commented on need of Agritourism that People want a new experience and escape from the stress of traffic jams, office cubicles, and carpooling in cities and suburbs, where the majority of the population resides. Children, as well as adults, can learn the process of growing food while enjoying a vacation together at an Agritourism attraction. Same is the situation with densely populated cities in Maharashtra. The pace of innovations and technology advances is getting faster and faster and is forcing everybody to compete severely to survive and grow in the city area. People from city areas are unhappy to face traffic chaos and pollution but are helpless. They are far away from nature and natural beauty. Their routine life is revolving around job place to home and free time is restricted to manmade entertainment places like theatres, hotels and clubhouses. The one and the only available nature they can enjoy are in the form of small gardens. For excursion, most of the city people like to visit and experience villages. If these people get proper facilities of accommodation, bed and breakfast, they can satisfy their desire to learn about agriculture, taste the bucolic cuisine and enjoy rural life at economical prices. No doubt, it naturally tends to give opportunity to the farmers and villagers to start and develop Agritourism centers so as to add one sure source of income. Introduction of Agritourism: Since, now days the major development in Agritourism is taking place all around the world, different forms of Agritourism are seen. Agritourism gives people the chance to breathe fresh air, learn about rural environment, ride horses, pick fruits, feed animals, milk cows and participate in actual work of farm and buy produce directly from a farm. Agritourism is a form of niche tourism in which farms are used as tour destinations for educational and/or recreational purposes. MART has accepted the concept of 6

7 Agritourism as, the practice of attracting travelers or visitors to rural areas which are used primarily for agricultural purposes. Agritourism center is the location where tourists from the urban areas can come and spend their weekends or holidays in a village with agricultural atmosphere at a very economical cost; it is the home away from home giving a personal feel of harmony with rural culture. Agritourism integrates agriculture with pleasure and gives the benefit of agriculture and tourism activities to the tourists that deliver economic benefit to concerned farmer and villagers. Rationale of the study Agritourism can rejuvenate the conventional concepts and views on tourism, and is bringing in a new dimension in the sustainable development. As stated by Fariborz Aref (2009) rural tourism development has become a top priority of the economic agenda of all the countries. Egbali Naser Abbas Bakhshandea Nosrat and Sayyed khalil Sayyed Ali (2011) stated that, The most important purpose of tourism development is economic and social development of the tourism areas. Research study of Agritourism in Maharashtra will help in highlighting such benefits. Existence and growth of Agritourism business is associated with and driven by both the sides of supply (farmers) and demand (tourists). To overcome the problems of lower income from farming through the related and unrelated diversification strategy farmers (supply side), are forced to supplement their income. Along with this tourists (demand side) increased income and demand for more specialized forms of vacation to experience the rural environment and nostalgia associated with a working farm enterprise has stimulated growth for tourism activities in rural areas. Pandurang Taware (2008) said about Agritourism scope, The urban population which is having roots in villages always has the curiosity to learn about rural life regarding sources of food, plants, animals, handicrafts, languages, culture, tradition, dresses and rural lifestyle. Agritourism has the capacity to satisfy the curiosity of this segment of population. The need of this study is to understand Agritourism from both sides of Agripreneurs and tourists and thereby to promote agricultural economic development in Maharashtra. According to the father of Modern Management Peter F.Drucker purpose and basic functions of Business are as follows- 7

8 Business purpose must lie in society since business enterprise is an organ of society. There is single definition of business purpose: to create a customer. Peter Drucker also insisted on basic two functions - marketing and innovation.marketing and Innovation produce profits; all the rest are costs. Objective of marketing is to know and understand the customer in a way that the product or service fits according to customer needs and wants and sells itself. The second function of business is innovation.it is not necessary for a business to grow bigger; but it is necessary that it constantly grows better. Innovation can be defined as the task of endowing human and material resources with new and greater wealth producing capacity. With the help of Innovation managers must convert society s needs into opportunities for profitable business. (Drucker P., 1973) Both the angles of marketing and innovation fit in the business of Agritourism. In Maharashtra understanding the Agritourism business and tourist s psychology will definitely foster this industry in a faster and better manner. Hence, there is need of studying this emerging agribusiness trend. A study based on commonalities and differences among different ATCs is also important so as to compare activities and their efforts and to divide them in a small, medium and large Agritourism centers. This will be beneficial for ATC owners to check their centers activities and to see where their operation can be improved. Although a considerable amount of work has been carried out on tourism, it is disappointing to note that scientific research on Agritourism is still at its infancy. Compared to individual tourism or Agriculture, the quantum of research which has been carried out on Agritourism is minimal. The motivation of this research topic is to explore these areas and contribute to the scientific advancement of the subject. The reason of this study was to gain a better understanding of the current status of Agritourism in Maharashtra so as to develop a knowledge base that will enhance its growth. There is need of knowing the level of benefits farmers receive from running Agritourism business. Thus due to its greater importance from both the angles, this topic has been selected for research study. Problem Statement Since Agritourism business started from the year 2005 in Maharashtra, farmers in the Maharashtra adopted Agritourism as part of a diversification strategy to increase income, it is important for farmers to clearly understand Agritourism. 8

9 Peter Drucker has stated regarding success factors of any business that, It is the customer who determines what a business is. The customer is the foundation of a business and keeps it in existence. (Drucker P., 1973) Study of tourists expectation and satisfaction factors is essential to grow this industry in the future. Few researchers who had studied Agritourism business and made conclusions were mostly derived from secondary data. Moreover, studies of tourists attitude towards this business were not studied. Research questions and Objectives: The research questions table linking with identified objectives of research topic- Research questions Related objectives To identify the types of Agritourism What is the status of Agritourism businesses that currently exist in the business in Maharashtra? Maharashtra by location, size, gross income, and type of product or service offered. To explore the status of Agritourism of Maharashtra. Which factors are necessary for To find out the minimum requirements for initiating Agritourism business. Agritourism development in To study the extent of additional income from Maharashtra? Agritourism centers as a supplementary income source for Maharashtrian farmer. What is the tourists demand from the Agritourism centers? To find out Tourist s expectations, perception and satisfaction level from a few ATC s visited by them. Which are the media used in the advertising of ATCs? To know the media preferred by ATCs for advertising. To know media preferred by tourists to know about ATCs. Hypotheses development on Agritourism As per the conclusions drawn from experience survey and expert interviews, review of the literature and pilot study researcher formulated following hypotheses. Both the hypotheses further were tested with appropriate statistical tests. 9

10 H1: The Agritourism is beneficial co-activity for the farmers which provides them additional income source. H2: Tourists are satisfied with the services provided by the various ATC s. Scope of the Study: It is important from viewpoint of agricultural community i.e. farmers and the government regarding study of Agritourism that if it is to be used as a dominant diversification option for sustaining the viability of the agricultural sector and rural communities. The study is restricted and related to Agritourism business in Maharashtra. It covers the study of ATC centers in Maharashtra and study of expectations of tourists who visited it. This research study highlights on related concepts of Agritourism, current business status of it, scope and obstacles in development of it in Maharashtra.All the data collection and research findings are made in the year Expected Contribution: Like any other value-added enterprises, Agritourism industry has to tackle with potential risks and costs. Agritourism requires capital investment for center development and hosts time to engage and entertain the tourists. Investment risk is involved In Agritourism development including infrastructure development and providing facilities related to hospitality and other service activities. As like other enterprises the main determining factor in success or failure of an Agritourism enterprise is largely dependent on effective management. Successful management of an Agritourism center requires many things which should be present and available for tourists.knowing the range of activities which are important for development of Agritourism center will be helpful in attracting more tourists to such centers. Understanding the preferred media for advertisement by centers and preferred media used by tourists to know about centers will be helpful in deciding promotional media for ATCs. This research study will discuss different facets associated with development of Agritourism business in Maharashtra. With survey findings based on responses from Agritourism business owners and Agritourists, current business activities can be analyzed and improved. For example, if research shows that using the business website or advertising through the internet is a useful and effective method for large Agritourism centers, but small Agritourism centers do not use the internet, MART could assist small ATCs by providing better information and support them in developing a Web site. 10

11 From the research study of this topic it is expected that it would highlight on related concepts of Agritourism, current business status of it in Maharashtra, scope and obstacles in development of it. If the suggestions are implemented by the ATC owners it would be helpful for them to execute effective communication with the tourists and so improving advertising effectiveness in Agritourism business. It would be also useful for those farmers who want to initiate their own centers. All those associated directly or indirectly with this industry, practitioners, academicians and research scholars may refer this research report for their respective purposes. Critical study of Agritourism Industry in Maharashtra would ultimately improve the overall growth of Agritourism in the state. Agritourism business development is important because it advances the sustainability of agriculture, something that is in danger because of various reasons like land holding pattern, urbanization, unpredictable monsoon and thereby uncertain crop yield etc. This study is important as it will help policy makers to determine how they can accelerate the growth of Agritourism all over Maharashtra. Outline of the study: This research study introduces the Agritourism concept which links the agriculture and tourism and discusses on current status of this business practiced by farmers in Maharashtra. This Research study is divided into five chapters. The first chapter provides introduction and background information about the research topic and focuses on the status of both agriculture and tourism sectors. The second chapter defines Agritourism, reviews the literature and examines various classifications of Agritourism, demographic profile of Maharashtra. This chapter also examines the discussions with regards to agriculture and tourism. The third chapter discusses methodology, and introduces the theoretical framework of the study and provides a detailed description of how the research would be carried out. Chapter four presents the data collected and provides an analysis with interpretation. The fifth Chapter provides conclusions and recommendations based on the study. This research study examines Agritourism as a feasible policy option for related diversification for farmers in Maharashtra. 11

12 2. Review of the Literature The literature review was initially wide ranging to ensure that no obvious areas were overlooked and it then focused down to those areas which are more specific to research needs both thematically and spatially. Agritourism Definitions: Definitions of Agritourism approved by all the researchers and organizations in the different regions of world are characterized specially by taking into consideration their own specific characteristics of the area where that selective form of tourist offer has been developing. Worldwide many terms have been used to convey the idea of Agritourism. It is multifaceted and may entail agricultural tourism, agro tourism, farm tourism, farm vacation tourism, wine tourism, agritourismo, as well as some related terms that are used interchangeably with Agritourism or that are complementary to Agritourism include nature tourism, rural tourism, alternative farming, wildlife enterprises, ecotourism, agritainment, heritage tourism, agri education and value added agriculture (Brant and Rhoades, 2007). The dictionary meaning of Agritourism is tourism in which tourist s board at farms or in rural villages and experience farming at close hand (Dictionary of the English Language, 2000). Barbieri and Mshenga (2008) define Agritourism as any practice developed on a working farm with the purpose of attracting visitors. McGehee, Kim, and Jennings (2007) explain Agritourism as rural enterprises which incorporate both a working farm environment and a commercial tourism component. Marques (2006): a specific type of rural tourism in which the hosting house must be integrated into an agricultural estate, inhabited by the proprietor, allowing visitors to take part in agricultural or complementary activities on the property. Sonnino (2004) activities of hospitality performed by agricultural entrepreneurs and their family members that must remain connected and complementary to farming activities. Sharpley and Sharpley (1997) tourism products which are directly connected with the agrarian environment, agrarian products or agrarian stays. World Tourism Organization (1998) involves accommodation being offered in the farmhouse or in a separate guesthouse, providing meals and organising guests activities in the observation and participation in the farming operations. 12

13 For the purpose of this study, Agritourism for farmers is considered as A range of activities, services and amenities provided by farmers and rural people to attract tourist to their area in order to generate extra income for their businesses. Agritourism for tourists is considered as anything that connects tourists with the heritage, natural resource or culinary experiences unique to the agricultural industry or a specific region of the country s rural areas. Basic Principles of Agritourism: Researcher from Srilanka Dr. S.M.P Senanayke, Rev. Dr. Wijitapure Wimalaratana (2005) also describes the characteristics as a Basic Principles of Agritourism which must 1. Have something for Tourists to see: Animals, birds, farms, culture of the village, dress and festivals, 2. Have something for Tourists to do: Participating in agricultural operations, riding horse, buffalo, cooking and participating in the rural games, 3. Have something for Tourists to buy: Rural crafts, fresh vegetables, food are few items. Relation between Agriculture and Agritourism As listed in the article entitled, Alternative forms of occupation and continuous educational training in Agriculture published by module organization of agro-farms Corporate and Development Center Rzeszow-Poland relations between farm tourism sections and the agricultural ones can be Complementary Supplementary Competitive Antagonistic Cox & Fox (1991) mentioned that tourists expect rural areas to be unaffected by congestion and to provide access to open, undeveloped space. Many of today s tourists are looking to rural areas as their vacation destinations. Agritourists Satisfaction: Srikatanyoo,N., & Campiranon,K. (2008) enlisted and discussed importance of identification of needs of Agritourists for Sustainable Tourism Development. This has been proposed in this study that the success or failure of agritourism providers will be largely determined by their abilities to satisfy agritourists needs.they also pointed out that, satisfied agritourists are in fact a significant source of revenue for the Agritourism providers, apart from the sales of their agriculture products. 13

14 3. Research methodology Research methodology is a science of studying how research is done scientifically and a way to systematically solve the research problem. In this chapter the research methodology used for research is described i.e. researcher has noted all the logical sequence of the steps of research process from beginning to completion. Explanation of Research Methodology is necessary so that everyone who will refer this study can understand the significance of what researcher has done and make sense of how it all worked. First part in this chapter gives justification for the methodology used. The second part describes the data collection methods and sampling procedures. The third part deals with the data analysis methods. Research Design A research Design is a framework or blueprint and specifies the details of the procedures necessary for obtaining information for conducting the research projects. The objective of exploratory research design is to provide insights and understanding of situation where as conclusive research design is designed to assist the decision maker in determining, evaluating, and selecting the best course of action to take in a given situation. And the major objective of descriptive research design is to describe something-usually market characteristics or functions. It is also useful to obtain information regarding the current status of the phenomena and to describe "what exists" with respect to variables in a situation. Moreover descriptive research design was selected due to its suitability with objectives of this research study which were to describe the characteristics of Agritourism centers, characteristics of tourists and determining their perception towards Agritourism characteristics, to determine the degree to which marketing variables are associated, and lastly to make specific predictions related to Agritourism business in Maharashtra. 14

15 Research Activities: Background Research ( Literature Review and Expert Interviews ) Definition and Classification of Agritourism Pilot Study Development of Research Instrument Selection of ATCs Interviews with ATC owners (11) (Interviews N=22) Mail Response from Tourists Information ATCs (11) Small ATCs (9) Large ATCs (2) Medium ATCs(11) (N=967) 15

16 Identification of Agritourism Activities and Sample Selection: A total list of 71 active or running Agritourism centers/ owners was received from MART office. The list contains the name and location of each Agritourism center. Questionnaire were sent to all ATCs out of which 22 centers responded. The selection of Agritourism centers for field interview and observation was guided by recommendations provided during interviews with leaders and experts. The researcher used judgmental sampling type of non-probability sampling to identify Agritourism centers for personal visit. 11 Agritourism centers out of 22 were contacted personally visited for observing the activities at centers and for the purpose of tourists survey. The primary criterion used to select the center was number of years completed by Agritourism center from its establishment, size of Agritourism business i.e. small, medium and large and the area. The regional distribution of farms is reported in Table No.3.1. Table 3.1: Geographic Distribution of Selected and responded ATCs Ambadwet-mulshi Palshiwadi Koregaon Nipani Morachi chincholi * Baramati Degaon Latur Pachgani Solapur* Beed Junnar Nagpur Ratnagiri Vasai Bhambarde,shirur Karjat Nandgaon Mahabaleshwar Velha (Each location includes 1ATC except * which denotes 2 ATCs.) Instrument Development A questionnaire used by Kathryn Joanne Lack (1997) for studying Agritourism development in British Columbia was used as a basis for developing the survey instrument for Agritourism centers survey. And a questionnaire used by Christopher M. Lindborg (2007) in the research study An analysis of Tennessee Agri-tourism visitors preferences and expenditures was used as a basis for developing the survey instrument for Tourists survey. Statements for the instrument were modified from factors related to resident attitudes identified during the literature review and in accordance with research study to be conducted in Maharashtra. A small-scale pilot study was carried out involving three Agritourism centers and fifty tourists for testing the questionnaires. It helped in revealing the weaknesses of it and 16

17 further reconstructed very carefully so that it proved effective in collecting the relevant information. The final validated research instrument used for survey of Agritourism centers consisted of total 16 questions, including both closed- and open-ended, to solicit information about Agritourism centers. Similarly research instrument used for tourists survey consisted of total 14 questions, including questions. These were also closed- and open-ended, to solicit information about tourists. Questions were pertaining demographic profile of tourists, purpose of visiting ATCs, tourists expectations and their satisfaction from the services they received at ATCs etc. tourists satisfaction level were measured on a five point Likert scale. Sources of Data Primary data have been collected from those who are directly or indirectly connected with Agritourism business like ATC owners and Managers, members of MART, tourists visiting ATCs, workers from ATCs, people from Tour and travel agencies, Agriculture officers and farmers. Secondary data majorly collected from the e-journals available with J-Gate (electronic gateway to global e-journal literature), and ProQuest (web-based information service providing access to a number of databases covering various subject disciplines). Researcher has used an articles, reports, and official websites of the various organizations, such as World Tourism Organization, World Trade and Tourism Council. Secondary data were also summarized from books related to agriculture, tourism, and Agritourism books. News paper articles associated with Agritourism also contributed to certain extent in secondary data collection. Instruments and Tools used for Data Collection: The different types of instruments and tools mainly used for data collection were: Questionnaire for ATC owners and tourists, telephones, mobile phones, Mail, , Internet, digital camera to take photos or video shooting at ATCs. These instruments have been considered and used at a particular point of time as per the need and suitability of the study. 17

18 Data collection Methods of Research Researcher utilized both qualitative and quantitative method. An interview, Observation and mail survey were used to collect information about samples from a population. Tourists survey was completed by using self administered questionnaires which were provided to tourists at Agritourism centers. Sampling Plan and Sampling Method: A population is aggregate of all elements that share some common set of characteristics and that comprise the universe for the purpose of research problem where as sample is subgroup of population selected for participation in study and is expected to be representative of rest of the population. The objective of this research study was to obtain information about the characteristics or parameters associated with Agritourism centers and similarly of tourists. For research purpose a part of the population was selected. For proper and timely study sampling was necessary. The population and Sample elements were as described below- Population (ATCs): All the Agritourism centers operating in Maharashtra. Sampling Frame: Agritourism centers listed with MART. Sampling Element: Single Agritourism center which offer services to tourists. Population (Tourists): All Tourists group who visit to ATCs. Sampling Frame: Tourists group who visited selected eight ATCs. Sampling Element: Tourists group who visited and experienced Agritourism services at Agritourism centers and respond to Questionnaire. Out of 71 ATCs 22 Agritourism centers were studied. As stated by Krejcie R. V. & Morgan D.W.(1970) that as the population increases the sample size increases at a diminishing rate and remains relatively constant at slightly more than 380 cases. 967 tourists opinions were analyzed for fulfilling the objectives of research study. Sampling Method: Sampling techniques are divided into probability and Non probability sampling. Probability again subdivided into simple random, systematic, stratified, cluster where as 18

19 Non Probability fragmented in judgmental, convenience, quota and snowball sampling. Every technique is having its own merits and demerits. As per the requirement of research study judgmental sampling technique have been selected on the basis of the assumption that the sample selected would represent the whole population of Agritourism centers and tourists visiting ATCs. Time Line: This research study on Agritourism in Maharashtra has been carried out in the year After a period of two years it has been completed within preplanned time frame as shown below: Activity Literature review Pilot Study Data gathering Data analysis Writing the thesis Amendments and Revisions Total Duration 4 months 3 months 10 months 3 months 3 months 2 months 25 months Data Analysis: Primary data and secondary data collected from sources were later on systematically arranged, tabulated and analyzed so as to get idea of Agritourism development in Maharashtra. Data analysis of ATCs and tourists survey was conducted separately. From all cases individual identifiers (ATC name, owner name; Tourists name) were removed to ensure confidentiality and replaced with unique serial numbers (ATCs: 1-22; Tourists: 1-967). The original data was edited, coded and entered into an SPSS v.20.0 a statistical analysis program. For both the ATCs and tourists survey, first part was involving descriptive statistics. Inferential statistics were employed using SPSS. Correlation analysis (Pearson s Correlation Coefficient) was used to test the strength of 19

20 association between selected variables. Cross-tabulations, Chi-squares, and tests were conducted. Significance was considered at p-value 0.05 level. All analysis was completed using SPSS. Different parameters were used for differentiating responses to different variables. Some of them are as given below. Based on the frequencies of establishment year or Agritourism activity began, the number of years in the Agritourism business were divided into four categories (i.e., ATCs which completed 1 year, 2 years, 3 years and ATCs which completed more than 3 years). The gross farm income and Agritourism income variable were collapsed into three categories (Upto Rs100,000; Rs.100,000-Rs.500,000 more than Rs.500,000). This change was made because there were too few entries in the categories with more than Rs.500,000. The average number of tourists arrival in a week was collapsed in to four categories (less than 30, and more than 60).This change was made due to presence of very few entries above 60. The information collected from primary and secondary sources has been verified with the field experience. 20

21 4. Findings Part I: Findings based on survey of Agritourism centers (ATC) Classification of Agritourism centers: Agritourism centers were classified into small, medium and large based on the investment in starting the Agritourism business. ATCs with Investment up to Rs.10 lakhs were classified as small, those with investment up to 20 lakhs were classified as medium and those with investment of more than 20 lakhs are classified as Large. Out of the total 22 ATCs surveyed, 11 (50.00%) were small, 9 ATCs (41.00 %) were medium and 2 (9.00%) were large units. Location and distance of Agritourism center from City: Average distance of Agritourism centers from nearest main city was found to be 50 Km. Least distance was 10 KM and highest distance was 300 KM. Most of the Agritourism centers were 20 to 60 KM away from nearest district places. Age and education of ATC owner/operator: Age of the ATC owners/operator lies between 27 years and 66 years. However most of them (16 out of 22 ) were in the age group 30 to 50 years. ATC owners education varies from fifth standard to Ph.D. More important to note about education of ATC owners is that 13 ATC owners/operators (59.00%) have completed graduation. Land holding pattern by ATCs: All the Agripreneurs operating Agritourism centers are medium or high land holders having on an average 20 acres of land of which maximum land were with irrigation facility. Source of Idea to start ATC: Most of the ATC owners (11) stated that they have initiated ATCs from their own idea and the training from MART has helped them to grow in the business. Employment generation By Agritourism Centers: Agritourism centers are run by 1or 2 family members. Each center has generated minimum 2 to maximum 20 employments for villagers. 21

22 Agritourists arrival at ATCs: All the Agritourism centers were getting maximum business during weekends due to the larger number of tourist visits. 80% tourists visited in the weekend i.e. on Saturday/Sunday and 20 % visited on other days to ATCs. The analysis has showed that the peak season in which largest proportion of the agritourists visited ATCs was winter followed by rainy season and summer. It has been also found that the tourists groups visiting Agritourism centers are mostly families. Charges (fees) for tourists: The average package cost for one tourists charged by ATC was Rs.350/- and varied from Rs for twelve hours and from Rs for twenty four hours including food. Attractions at ATCs: Food: All Agritourism centers served regional, rural delicious cuisine to tourists. Agricultural activity: Most of the Agritourism centers were having some specific agricultural activities to see or experience for the tourists groups. Nearby tourist spots: Agritourism centers were near to some tourist spots at a distance of km from the centers where visiting tourists were taken by Agripreneurs for excursion. Events at ATCs: Agritourism center arranged special unique events or activities to attract more tourists groups to their centers like Grape festival, Kite festival, Summer camps for children, Full moon celebration etc. Agritourism centers and media preferences: Agritourism centers promoted them through Internet websites, newspapers, pamphlets and Hoardings. Exceptionally Agritourism centers gave advertisement on Radio. Some centers also appointed agents for soliciting tourists. Part-II: Findings based on Tourists Survey Tourists place of residence: It is interesting to know from analysis that approximately % of the tourists visited Agritourism centers were from Pune and Mumbai and rest % were from other district places. 22

23 Age groups of tourists: It was found that out of 967 agritourists studied under the survey, below 30 years of age constituted 31.40%. Survey also showed that majority of the visitors were aged between years (64.00% of the total tourists) and a very small proportion of 44 visitors (4.60%) was above 50 years of age. Occupations of the respondents: Out of the 967 agritourists surveyed 42.00% were Professionals/Managers, 35.00% were self employed and remaining 23.00% were Government employees, or school/college students. Distance of tourists city of residence from ATCs: 18.00% tourists travelled less than 50 km, 35.00% traveled km, 44.00% traveled km and only 4.00% traveled more than distance of 200 km to reach ATCs. Previous Agritourism experience: Most of the agritourists i.e. out of 967 participants 738 tourists (76.30%) mentioned that they had no previous experience of visiting ATC. Out of remaining 229 tourists (23.70%),126 tourists (55.00%) stated that they had taken such experience at same center and 103 tourists (45.00%) had experienced Agritourism activity at different centers. Reason for visiting Agritourism center: The major reason for visiting an Agritourism centre was to experience the rural lifestyle which was supported by responses from 423 respondents (43.70%). Next was the motive of leisure and recreation which brought 398 respondents (41.20%) to the Agritourism centers. Another 121 tourists (12.50%) responded that they came for the sake of gaining knowledge and 25 visitors (2.60%) had other reasons to visit ATCs. Classification of tourists groups: % Tourist groups who visited Agritourism centers were families % were groups of friends, 8.00% were School or College groups and 1.00% tourist visits alone. Sources of information to know about ATCs: The researcher found that the major source of information for knowing about Agritourism centre for the agritourists was internet (379 visitors or 39.20%). Another % (339 visitors) came to know about ATC through word of mouth publicity and 16.00% (153 visitors) received information 23

24 through newspaper advertisements. Among the other sources of information were television, hoardings, banners and radio. Gender of the Respondents: It has been found regarding gender wise classification 774 respondents (80%) were males and 193% (20%) were females. Number of visits to Agritourism center and to traditional tourist places: Number of visits to traditional tourist places by tourists were ranging between two to five times in a year where as the researcher found that most of the respondents wanted to visit ATCs once or twice a year. 359 visitors (37.10%) would like to visit Agritourism center once in a year and 282 visitors (29.20%) would like to visit Agritourism center twice in a year.267 visitors (27.60%) were interested to visit such centers thrice in a year and 56 visitors (5.80%) mentioned that they would like to visit Agritourism centers more than thrice in a year. Duration of stay by tourists at Agritourism center: 61.00% tourists groups who visited Agritourism centers stayed for two to three days to experience and enjoy the services and activities at center, 34.00% tourists returned same day and 4.00% stayed for 4-6 days at the ATCs. Important factors and its importance in view point of agritourists Age group: It has been found that farm scenery was very important to the agritourists irrespective of the age groups. It has been noted that overall local sightseeing was important to all age groups of agritourists. However, for the age group below 30 years it was very important. Recreational activities, to experience traditional ways of life, transportation access and guide were important factors to the agritourists irrespective of age groups. Food factor was important to the agritourists in the age group below 30 and above 50 years. For the age group of years it was very important. The factor package cost was very important to the agritourists irrespective of age groups. Safety and security factor was important to the agritourists in the age 24

25 groups below 30 years and years while for visitors above 50 years this factor was very important. Distance of residence city from ATCs: It has been found that farm scenery was very important to the agritourists irrespective of the distance they travelled to reach ATCs. Local sightseeing factor was found very important to the agritourists of all distance groups except those who came from the distance of 50 to 100 km who reported it as important. Recreational activities factor was important to the agritourists of all distance groups and for the tourists who came from the distance of 100 to 200 km, it was very important. The factors to experience traditional ways of life and food were important to the agritourists of all age groups except those who came from more than 200 km it for whom they were very important. The factors Guide and transportation access were important to the agritourists irrespective of distance they travelled to reach ATCs. Package cost factor was very important to the agritourists coming from the distance of Km and km. For other groups, this factor was important. The factor safety and security was important to the agritourists coming from distance of km and km while for distance groups of less than 50 km and more than 200 km this factor was very important. Gender of the agritourists: The factors Farm scenery, local sightseeing factor and package cost were very important factors to the agritourists irrespective of the gender. The factors recreational activities, to experience traditional ways of life, transportation access, safety and security factor and guide were important to the agritourists irrespective of the gender. The factor food was very important for male and important for female agritourists. Size of Agritourism center: The factor farm scenery factor was very important for agritourists visiting small and medium size of the ATCs while it was important to agritourists visiting large ATCs. The factor local sightseeing was very important for agritourists visiting small and large size of the ATCs and for the agritourists visiting medium size ATCs it was important factor. 25

26 The factor to experience traditional ways of life was important to agritourists irrespective of size of ATCs they visited except for large ATCs in which agritourists rated this factor to be very important. The factor food was very important for agritourists visiting large ATCs and important for agritourists visiting small and medium size ATCs. The factors Guide, safety and security factor and transportation access were important to the agritourists irrespective of size of ATCs. Package cost factor was very important to the agritourists irrespective of the size of ATCs except for the agritourists visiting large ATCs for whom it was important. Satisfaction level of agritourists towards products, services and hospitality at ATCs: Age group of agritourists: For the food quality agritourists were satisfied in the age group between 30 to 50 years whereas the agritourists from the other two age groups were highly satisfied. Agritourists were satisfied with the accommodation facility at ATCs in age groups and above 50 years. However, tourists from age group below 30 were neither satisfied nor dissatisfied about accommodation. Agritourists in the age group years were satisfied about friendliness of the ATC personnel and other two groups were highly satisfied regarding the same. Agritourists were satisfied towards recreational activities, accessibility to cultural heritage sites, personal safety and security and organised excursions irrespective of the age group. Agritourists in the age group years were satisfied whereas from the other two groups agritourists were highly satisfied with value for money. Distance of residence city from ATCs: It has been found that agritourists were satisfied towards friendliness of people, organised excursions, accessibility to cultural heritage sites, recreational activities, value for money and personal safety and security irrespective of distance they travelled to reach ATCs. Gender of the agritourists: It has been found that agritourists were satisfied towards friendliness of people, organised excursions, accessibility to cultural heritage sites, recreational 26

27 activities, value for money and personal safety and security irrespective of gender. Satisfaction level and classification of Agritourism center: It has been found that agritourists were satisfied towards friendliness of people, organised excursions, accessibility to cultural heritage sites, recreational activities, value for money and personal safety and security irrespective size of ATCs. However, regarding personal safety and security agritourists visiting large ATCs were highly satisfied. Recommendation of visited Agritourism centers to others by agritourists: 87.00% tourist groups were ready to recommend visited Agritourism center to others while 13.00% refused to do so. 296 visitors of small Agritourism centers, 368 visitors of medium sized centers and172 visitors of large centers were highly satisfied with their experience and responded that they would like to recommend the center they visited to their friends and relatives. On the other hand there were 65 visitors of small centers, 43 of medium centers and 23 of large centers who refused to recommend the Agritourism center to others. 27

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