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To cite this article: Hyungsuk Choo & Duk-Byeong Park (2020): The Role of Agritourism
Farms’ Characteristics on the Performance: A Case Study of Agritourism Farm in
South Korea, International Journal of Hospitality & Tourism Administration, DOI:
10.1080/15256480.2020.1769520
Article views: 62
Introduction
More and more small farms have sought to find non-agricultural activities
beyond the agricultural production in order to increase economic and social
benefits (McGehee, 2007). Those activities, termed as farm diversification,
can include a variety of forms, e.g., less traditional livestock and non-food
crops production, green energy generation, on-farm stand, tourism and so
on. The relative importance of those activities varies geographically between
sectors but tourism is commonly adopted across the regions as one of the
most popular activities (Barbieri et al., 2008; Carpio et al., 2008). Small
farmers often prefer tourism over other diversification activities due to
both the perceived extra benefits of working from home while being able
to take care of children and the possibility of generating extra income
(Sharpley & Vass, 2006). Tourism on the farm, often called as agritourism
CONTACT Hyungsuk Choo hchoo@bgsu.edu Tourism, Hospitality, and Event Management, Bowling Green
State University, 113 Eppler S, Bowling Green, OH 43402
© 2020 Taylor & Francis Group, LLC
2 H. CHOO AND D.-B. PARK
America (Yinga & Zhou, 2007). This study fills this gap by drawing on a case
study of a group of small scale agritourism farms in South Korea. This
manuscript commences with an overview of agritourism farms in South
Korea, the performance of agritourism farms, and their characteristics influ-
encing the performance. The method section that follows contains a case
study of 196 agritourism farms to develop the regression model of the
performance. Case study results are presented, followed by a discussion of
agritourism farms and characteristics important for their performance.
Literature Review
In the past decades, farmers begun to recognize the multiple contributions of
agriculture beyond the traditional food production. No longer sustained by
the sale of traditional crops and livestock that have provided a flat net
income for years, farmers have sought to diversify their economic activities
beyond the traditional farming (Kirschenmann, 2003). As agriculture has
multiple functions and a profound impact on the rural landscape, local and
global economy, community development, and agricultural ecosystem, there
are many diversification activities which can be adopted by farmers (Butler &
Flora, 2006). Of these activities, diversification into tourism has been pre-
valent as a way to realize economic and social benefits that open new
horizons in rural development with possible beneficial effects on the envir-
onment, the landscape, and the reduction of depopulation (Lupi et al., 2017).
Over the past decades, agritourism farms have dramatically increased in
numbers locally and globally, receiving increasing attention with respect to
its conservation potential (Liu et al., 2017).
In general, the primary reason for the recent emergence of agritourism can
be found from the supply side, but the recent popularity of agritourism could
not have occurred without market demand (McGehee & Kim, 2004).
Discretionary income and increased need for more specialized forms of vaca-
tion experiences have driven the growth of tourism and recreational activity in
a rural farming environment (Tchetchik et al., 2008). Agritourism also meets
the needs of urban tourists who seek traditional hospitality, nature and cultural
experiences, peace and tranquility, thematic holidays, authenticity, healthful-
ness, and so on (Chang, 2003). These drivers, in combination with better
access to rural destinations, have made agritourism popular for a growing
number of farmers, the farming community, and the tourism industry.
The main force of agritourism development varies country to country as it
can be from the government, the cooperative-community movement, and/or
a private enterprise. In Korea, it is the government to recognize the potential
role of tourism in some rural areas as part of the revitalization of declining
rural areas (Choo & Jamal, 2009). In 1984, the pilot project of 12 agritourism
communities was initiated under the support of the Special Act on Farm and
4 H. CHOO AND D.-B. PARK
were returned with an 88% response rate. Among those, 196 were retained
for further analysis without 46 surveys with insufficient information on their
annual sales.
The independent variables used in this study included farm business and
owner characteristics related to business performance which was suggested
by Barbieri and Mshenga (2008). A self-administered survey was developed,
consisting a set of questions about the characteristics of agritourism farm,
e.g., such as the type of tourism business, the number of years in tourism,
support from government and community, managerial behavior, business
performance, and demographic information. A Likert-type scale of 1:
strongly disagree, to 5: strongly agree was adopted for questions about
support from government and community and managerial behavior. In
addition, the multiple choice or open-ended questions were adopted for the
rest questions, the type of tourism business, the number of years in business,
and the performance.
Data were analyzed in two steps: descriptive statistics and regression
analysis. Descriptive statistics were conducted to provide the sample profile,
along with some preliminary check for the statistical assumption of regres-
sion model. These farms are located in Gyeonggi Province (46 farms),
Kangwon Province (42 farms), Gyeongsangnam-do Province (34 farms),
Junrabuk-do Province (27 farms), and Gyeongsangbuk-do Province (19
farms) in Korea. Four other Provinces in Korea have 28 farms. The primary
age group of the respondents was 50–59 (40.8%), followed by 40–49 (35.7%).
As Table 1 shows, a majority of respondents were male. About 76% of the
respondents were between 30 and 49 of age range and more than 66%
graduated middle or high school. The average years in agriculture is 12,
while farms have engaged in tourism activities for 2.6 years.
In the step two of analysis, sequential multiple regression analyses were
conducted to find out whether significant relationships exist between char-
acteristics of agritourism farms and their annual sales.
Discussion
This study identifies characteristics of agritourism farms that are positively
related to performance, using a case study in South Korea. The result of
multiple regression analysis found that the availability of attractions around
agritourism farms is positively related to their agritourism sales. This shows the
importance of collaboration with neighbor attractions for the development of
8 H. CHOO AND D.-B. PARK
agritourism farms, consistent with the previous literature emphasizing the co-
development, clustering or bundling in the rural tourism (Di Domenico &
Miller, 2012; Huang et al., 2016). Sharpley (2007) further argued that the
development of large, purpose-built attractions can represent a viable means
of achieving sustainable rural development. Rural tourism attractions, includ-
ing agritourism farms, are often fragmented and remote with limited appeal
and demand to be a primary attraction, so the large, purpose-built attractions
are needed to generate the sustainable level of demand to that area. The results
of analysis also show that the availability of partnership with other farms or
other services positively influences the annual sales of agritourism farms.
According to tourism scholars, the intrinsic nature of tourism involving
a range of services together explicitly demonstrate itself the importance of
collaboration and partnership (Clarke, 1995, 1999), and this study reveals the
impact of those can be on performance of agritourism farms. Although the
nature of collaboration and partnership, e.g., type, and size, required for the
INTERNATIONAL JOURNAL OF HOSPITALITY & TOURISM ADMINISTRATION 9
development of agritourism farms is not given, this study suggests that attrac-
tion and partnership with other farms and other services are some of key
aspects in the collaboration of agritourism development. For example, agri-
tourism farms can be part of local itineraries that include other agritourism
experiences, nearby hotels and resorts, tourism bureaus, and nearby businesses
of restaurants, souvenir shops, and others. Agritourism farms can also benefit
from partnership with outdoor recreation businesses, such as fishing, hiking,
bird-watching, and so on. Rural areas have great resources for many of these
activities and they just need to be combined to be marketed and presented
together for their potential customers.
Agritourism farms in Korea provide a variety of programs, such as farm
stay, educational program, experience program, restaurant, farm-stand, others
and combination of those, and these were found to positively affect the farm
performance. The most common program provided at farms is educational
program, followed by farm stay and experience program (Table 1). A majority
of farms (56.1%) solely dedicated to education program. More than one third
of farms offered more two programs: 16.3% of agritourism farms with educa-
tional program and farm stay, 13.8% with educational program and restaurant,
and 5.1% with farm stay and restaurant. Lastly, about 4.1% of the farms offer
experience program. Measuring the contribution of each program to annual
sales may not be the most appropriate way to assess their role as the amount of
unit sales of each program is significantly different. However, this information
may be useful for agritourism farmers to choose their program depending on
their sales goal.
In terms of the length of time in tourism business and the number of
employees, both were found to be significant as already recognized in the
previous studies suggesting that the size (number of employees) and the
length in business are interrelated aspects of annual sales (Rangone, 1999).
Agritourism farms that have been in business longer often benefit from the
economies of scale through experience in management and marketing.
Order, Hogartth-Scott, and Riding (2000) in their study about the perfor-
mance between small and micro businesses also suggested that the positive
relationship between the number of employees and the performance and
growth performance is clearer, particularly among micro businesses having
the number of employees less than 50.
Greater annual sales tended to be agritourism farms relying on business/
marketing plan, indicating the performance follows from the decision
makers’ intentional actions. Different from conventional large business
where formal strategic planning is inherently important, the role of formal
strategic planning in the small business has been arguable in the literature.
Small businesses are different from large business in that informality, lack of
marketing/management resource, individual motivation. Accordingly, some
studies argue that small businesses do not typically have a long-term strategy
10 H. CHOO AND D.-B. PARK
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