Farm Profitability and Agritourism in the EU - Does size matter?
Z. Bacsi, Péter Szálteleki
Dec 29, 2022
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DETUROPE - The Central European Journal of Tourism and Regional Development
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Semantic Scholar
Key Takeaway Key Takeaway: Agritourism benefits medium-sized farms in the EU most, with smaller farms and those with less capital benefiting more, while EU subsidies also enhance agritourism revenues.
Abstract
Cite this article: Bacsi, Z., Szálteleki, P. (2022). Farm Profitability and Agritourism in the EU – Does Size Matter?. Deturope. 14(2), 152-171. Abstract Agritourism is an activity in which the non-traditional roles of the countryside: food production, environmental richness, the beauty of landscapes, cultural heritage and traditional lifestyles, local food and drinks, and many other aspects make rural regions attractive for recreation and leisure, while contributing to income diversification.Thus agritourism is expected to help improve farm performance in terms of incomes, profitability and efficiency. While extensive empirical research has been done about this issue in the USA, relatively few results are known for Europe. The present paper deals with the impacts of agritourism revenues on the farm profitability and farm performance in the 28 countries of the EU (including Britain), from 2004 to 2020, relying on the standard FADN database, applying descriptive statistics, correlations and panel regression. Our findings show, that farm size matters, and although the smallest and the largest farms benefit, it is the medium size farms that gain the most from agritourism. Farms with smaller land areas, and less farm capital tend to be involved more in agritourism than better equipped ones, while the subsidy policy of the EU also enhances agritourism revenues.