Agritourism.

Chapter 9 (Page no: 122)

Cooperation of agritourist entities.

This chapter discusses the integration or connecting of business entities for the realization of common goals. Complete integration takes place when the cooperating entities merge and form a new entity. Complete integration may also consist in the fact that the stronger entity incorporates the weaker entity or it may mean the joining of two or more equal partners. Integration may also mean cooperation of independent partners for the realization of mutual goals. There are three types of integration: horizontal, vertical and territorial. Horizontal integration takes place when two or more business entities of similar production or service profiles cooperate with each other for the realization of a common goal. Vertical integration takes place when entities of the same branch but occupying different positions in the marketing link join together for the realization of common goals. Territorial integration takes place when entities not necessarily of the same branch but located in the same area cooperate with each other for the realization of common goals. There are obvious benefits from horizontal, vertical and territorial integration. The fact that integrated farms can support one another is their advantage over individual farms. Cooperation and integration between agritourist entities take various forms, from simple to very advanced integration processes. The agritourist networks are a more advanced form of cooperation of agritourist entities. An agritourist network is above all aimed at serving short-term clients who spend a few hours on one farm and then intend to visit another. Agritourist associations operate for the benefit of farmers engaged in agritourism. An association may serve several functions, e.g. advertising on the net, through leaflets, etc. An association may offer a chance to cooperate, receive training and obtain information; associations organize conferences or even conduct joint research. As it turns out, agritourism is an activity that is available not only to farms. It is also pursued by enterprises that are completely unrelated to agriculture, but which count on high returns from the capital invested in food-processing activities.

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