Agri Tourism - Digging gold in rural India

8/6/2019 Agri Tourism - Digging gold in rural India

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Digging gold in rural India

Agri-tourism is a Rs 4,100 crore opportunity. Are you ready to hit the village trail?

For Sunil Bhosle, a farmer in the Jogwadi village in the Baramati taluk of Pune district, a 13 acre piece of land tilled by his entire

family round the year meant an annual income of Rs 60,000-75,000. This was before he was exposed to the benefits of agri-tourism

six months ago. Bhosle, with the help of the Agri Tourism Development Organization (ATDO), opened his farms to tourists in June

last year, charging each Rs 300-350.

He has since welcomed 150 tourists with traditional garlands and authentic Maharashtrian delicacies. The effort translated into an

additional income of Rs 15,000, after deducting an equal amount

in expenses. He is now constructing two more rooms for tourists.





" Agri-tourism has given Bhosle a full-time job,´ says Pandurang

Taware, Director, Marketing and Sales, ATDO. Taware is the

brain behind the launch of a pilot project in agri-tourism in

Baramati in 2005. Having spent around 17 years in the tourism

industry, he realized that for marginal farmers, farming alone

could not bring the necessary financial benefits. He felt that

attracting tourists to rural India could open a new earning streamand help promote village handicraft, food and culture.

In the first year of operations, between October 2005 and October

2006, 8,700 tourists visited farms pooled in by villages in

Baramati. The influx grew to 17,000 in the second year. Since

October 2007, more than 21,000 tourists have taken the rural

trail.

Old ways, new ideas

Agri-tourism is all about unraveling various facets of village life.

This includes opening up farms to tourists from cities and abroad,

and letting them spend some time in the lap of nature. Apart from

telling them about the various crops and how they are sown and

harvested, agri-tourism exposes tourists to authentic food,

handicraft, dress, culture, music and language. Tourists get to

indulge in rural activities such as bullock-cart rides, milking cows

and goats and picking farm-fresh fruits and vegetable. The

activities may vary from village to village, as a country as diverse

as India has so many different experiences to offer.

Agri-tourism activities can help generate more jobs in rural areas,

and thus reduce large-scale migration from villages to cities. Two-

thirds of India¶s population lives in villages, and agriculture is their

mainstay. But unfortunately, unlike IT, agriculture is facing under-

investment. So here is a chance to marry the benefits of agriculture with those of tourism.

³India has a global edge in its potential to offer unique experiences, particularly linked to rural India, which has tremendous wealth in

its rich tradition, lifestyle, culture and wisdom. Unfortunately, tourism in these areas is at a nascent stage and it can therefore absorb

much of the necessary expansion in the tourism sector as a whole,´ says Tushar Pandey, Country Head, Strategic Initiatives ±

Government (SIG), Yes Bank. The private-sector bank is bullish on the prospects of agri-tourism in several states, particularly Uttar

Pradesh. It is partnering with CII to study the potential of agri-tourism in Uttar Pradesh. The study is likely to be presented to the

state government soon.

The Central Government has a scheme on rural tourism, as part of which various activities, such as improvement of infrastructure,

are being conducted in a big way. The focus of the scheme is to tap the resources available under different schemes of the

Department of Rural Development and state governments.

Setting up an agri-tourism farm doesn¶t cost the earth. It can be developed in a village where farmers are willing to showcase their

culture and traditions. All one needs to set up is a decent boarding and lodging facility for tourists. It is important to have a clean

place and hygienic food. The spend on travel, food and accommodation is low and so it is easy to scale up the number of tourists

they can receive.

DAR E/estimates

Number of foreign tourists

who visited India in 200750 lakh



Number of domestictourists in 2007

40.6 crore

Total number of tourists in

200741.1 crore

Say, 10% of tourists aregame for agritourism

4.11 crore

Tariff from one touristfor a day

500 Rs

Say, each tourist stays for 2 days

Earning from each tourist 1,000 Rs

Estimated size

of opportunity 4,100 Rs crore

³To make arrangements for 12 tourists, for whom you need to build four rooms, costs approximately Rs 5 lakh,´ says Taware. (See

Table 2: Money Matters)

A Rs 4,100 crore opportunity

The tourism sector is one of the major foreign exchange earners for the country. In 2007, 50 lakh tourists visited India, up from 44.5

lakh in 2006. Correspondingly, the foreign exchange earnings grew 33% to over $12 billion, compared to $9 billion in 2006.

According to estimates, 40.6 crore domestic tourists criss-crossed the length and breadth of the country.

DAR E/money matters

Number of foreign touristswho visited India in 2007

4

Size of one room 180 sq ft

Cost of constructing one room 400 Rs/sq ft

Cost of furnishing one room 300 Rs/sq ft

Total cost of one room 1,26,000 Rs

Total cost of four rooms 5,04,000 Rs

Earnings

Say, 10 tourists visit the village for 104 days/year

104 days/year 500 Rs

Gross earnings 5,20,000 Rs

Expenses

Monthly spend on food,

electricity etc15,000 Rs

Annual spend on food,electricity etc

1,80,000 Rs

Loan repayment of Rs 5 lakh 1,50,000 Rs







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Agri Tourism - Digging gold in rural India