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CABI Book Chapter

Agritourism.

Book cover for Agritourism.

Description

This book presents the depth of the new wave of agritourism apparent around the world. This book consists of four parts. The first section is an introduction to the economics of agritourism; it introduces the role of organization, management, logistics, safety, marketing, finance, economics and psychology and, within agritourism, discusses the role and importance of agritourism in the multifunctio...

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Chapter 8 (Page no: 108)

The economics of agritourist enterprises.

This chapter discusses techniques that explain and analyse selected economic problems of agritourist enterprises, namely: resources and factors in agritourism; analysis of outlays and effects; listing categories of outlays, income and costs; costing in case of production costs of agritourist products and services; financial analysis of economic activity; break-even point in agritourist activity; and risk in agritourism. Economic analysis of an agritourist enterprise determines if the business brings positive or negative financial results. If an agritourist activity brings profit, then increasing the profit is identified. If the activity brings a loss, the aim of the analysis is to determine its causes and find a way to eliminate future losses. The economic activity of an enterprise is characterized by the categories of investment, income and expenses. The investment is all non-material and material assets that are invested in the production of agritourist products and services. Costs are expenditures relating to that investment. The calculation of costs of individual services in a multipurpose agritourist enterprise requires a number of methodological explanations. However, certain farm activities do not bring direct income, but only generate costs. The prices of agritourist products and services have not only economic but also informative value. The informative value has vital importance both for potential clients and for service providers. Through the price, the potential client is informed about the standard of the offered service and, on the other hand, the agritourist farm expects to receive a certain type of clients. The agritourist farms that are not ready to receive certain groups of clients use the price to ensure the inflow of clients from the desired 'segment'. Break-even point analysis specified the number of guests that a farmer planning to start an agritourist business will have to receive for the assets invested in the business to pay off. The analysis of financial liquidity shows the ability of an agritourist enterprise to settle its payment liabilities in different periods of time. Agritourist entities investing in agritourist projects need to be able to evaluate the quality of an investment proposal. The primary way to evaluate a project for which all impacts can be monetized is to calculate the net present value (NPV) of a project. The net present value calculation determines the profitability of an investment given that expenditures and revenues occur at different points in time. The risk in agritourism applies both to the entities providing agritourist services and the tourists who use them. For the supply party it involves either possible loss within the farm or loss resulting from events not related to the farm.

Other chapters from this book

Chapter: 1 (Page no: 3) The concept of agritourism. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 2 (Page no: 15) The economic and social importance of agritourism. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 3 (Page no: 43) Multifunctional development of rural areas. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 4 (Page no: 54) Agritourist space. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 5 (Page no: 85) Agritourism ventures. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 6 (Page no: 91) Regulations of agritourism activities. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 7 (Page no: 96) The organization of an agritourist farm. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 9 (Page no: 122) Cooperation of agritourist entities. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 10 (Page no: 132) Agritourist services and products. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 11 (Page no: 155) Agritourists. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 12 (Page no: 168) Agritourism markets. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 13 (Page no: 179) Agritourism pillars. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 14 (Page no: 182) Facilitating agritourism. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 15 (Page no: 196) Mobility in agritourism. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 16 (Page no: 215) Agritourist farms and enterprises around the world. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 17 (Page no: 244) Agritourism on the edge. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 18 (Page no: 254) The agritourist characteristics of five countries of the world. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.
Chapter: 19 (Page no: 275) Agritourism yesterday, today and tomorrow. Author(s): Sznajder, M. Przezbórska, L. Scrimgeour, F.