With the tough times continuing in the primary sector, many farmers may be looking for alternative income streams to remain profitable, and many are turning to agritourism experiences.

Agritourism is a relatively new concept to New Zealand, so much so that Tourism New Zealand is yet to adopt the word, still using the much more narrow term Farmstay.

Queenstown-based business and marketing consultant Marijke Dunselman is determined to see the industry grow, and founded Agritourism New Zealand five years ago to uplift farming communities by promoting agritourism and fostering the industry.

Dunselman emphasizes that while agritourism has seen significant growth globally, New Zealand has yet to fully tap into this potential.

“There is a clear and growing demand from both international and domestic tourists for agritourism experiences, surpassing the growth rate of other tourism sectors.

"People love going to a farm or a vineyard and doing a multi-day walk, for example.

"We need to focus on that area more."

Dunselman said that although the agritourism industry is growing in New Zealand, there needs to be specific statistical data to track that growth.

"I'm trying to get more specific stats, but on average, the number of international visitors has grown six and a half per cent per year over the last 50 years.

"Tourism pre-covid was our biggest export earner."

Dunselman said lockdown proved the domestic tourism market was interested in agritourism experiences.

"People with walks or horse trekking did really well, and most farm accommodation was full."

When starting an agritourism business, it's important to do your research and seek guidance.

"For a lot of farmers, agritourism is an entirely new industry.

"There is a lot to learn."

Dunselman emphasized the importance of farmers being able to assess their property to determine which activities would be suitable for their farm, taking into account human and financial resources.

She also suggested that collaboration between farms is most effective when neighbouring farms share similar standards and ideas.

"You can develop more of an experience by working with other agritourism ventures in your area.

“You might have accommodation, but your neighbour might have a horse trek.

"That raises the product to a multi-day experience."

Farmers needed to decide the scale of the agritourism business they wanted to create and how much involvement they wanted in the operation and the guests.

Going through an agent means losing some of the profits but gaining more impact and exposure, as well as outsourcing the business's marketing to the experts.

"So some people just put a cottage on and run it through Airbnb, and that's the lower end.

"And then there is the option of getting more visibility by going through agents and making it higher end by having food, for example – then you can generate very, very good income from it."

Health and Safety compliance often makes farmers nervous about having guests on their farms, but Dunselman said as long as the paperwork is in place, there should be no problems, as long as you consider that those guests may have no prior on-farm experience.

"You have to have a health and safety plan, just like you do for your farm.

"You have to see things from a visitor's perspective as they come on and may never have been on a farm.

"It's about identifying risks and developing a plan for managing those risks."

Dunselman emphasized that the most common mistake farmers make when considering agritourism is underestimating their farms' tourism potential.

Farmers often charge too little for experiences, but Dunselman pointed out that guests are willing to pay top dollar.

Additionally, she said that high-end on-farm accommodation retreats are consistently fully booked.

"People can make 10 or 20 thousand per year but can make 300-400 thousand by doing it right the first time and learning about the industry.

"People don't know what they don't know."

Dunselman said the industry not only creates much-needed additional income streams for farmers but also has the potential to grow rural communities.

For example, adult children returning home to the farm and looking to diversify the farming operation can have a flow-on effect.

"They set up an agri-business, and they employ a chef, they employ cleaners, and they all have families.

"They need housing and schooling, so it builds those communities up again."

Guests also spend money in rural communities as they explore the area during their stay.

"It has this multiplier effect.

"They don't just spend money with you; they also spend it in the community, and the more there is to do in the area, the longer they will stay."

Dunselman said that most farmers running agritourism experiences find it rewarding and describes it as a “happy industry.”

"It's pretty tough for farmers out there, and tourism is fun because you are dealing with people who are in awe of what you offer.

"People want to connect with farmers, and people love it because it's very personalized.

"People love it because it's real."

By Claire Inkson