New Venture Guide to Ag Tourism

 
 
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 The purpose of this factsheet series is to help producers and processors understand the key elements needed to manage a business. The factsheets also discuss some of the essential components used to develop a business plan and assess the profitability of a business venture.

Diversifying a farm or ranch operation with an ag tourism venture can take many different forms. The opportunities are almost endless and might include attractions, events or services. Regardless of the choice, careful consideration is required to determine the most appropriate venture for the farm, the area and the operator.

Use the following information to help develop a new ag tourism venture for your farm. This guide can also serve as a basis for a business plan for the implementation of a new venture. For a list of potential ag tourism venture ideas consult Alberta Agriculture, Food and Rural Development's factsheet, Opportunities in Ag Tourism Ventures, Agdex 888-8.

Current major agricultural activity:

  • Estimated per cent of your time to be spent on tourism activities: _____________%
  • Estimated per cent of employee's/family's time to be spent on tourism: _____________%
  • Estimated amount of farm income to be derived from tourism: _____________%
  • Would you consider working with nearby attractions to jointly create a tourist attraction? ___ Yes ___ No With whom? __________________
Primary goal for the ag tourism venture is:
educate
entertain
increase profit
farm succession
diversify farm business
other: _______________________________________

Strongest impression that a visitor should leave with:

"This place is so _________________________________!"

Family support and skills
  • Does my family support this initiative? ___ yes ___ no
  • Do we like to meet all types of people? ___ yes ___ no
  • Do we like to entertain strangers often? ___ yes ___ no
  • Do we have good organizational skills? ___ yes ___ no
  • Do we have the personality for tourism? ___ yes ___ no
  • Are we successful at managing home and farm expenses? ___ yes ___ no
Family member's roles
  • production ____________________________________
  • customer service ______________________________
  • event planning ________________________________
  • management __________________________________
  • marketing ____________________________________
  • other: ________________________________________
Site
  • Is the property easy for travellers to find? ___ yes ___ no
  • Is the property tidy, well kept and appealing to visitors? ___ yes ___ no
  • Can the roads leading to the farm accommodate buses/RVs? ___ yes ___ no
  • Can restricted areas be secured or separated from visitors? ___ yes ___ no
Resources
historic buildings
beautiful/unique landscapes
visible conservation practices
new technology
alternative crops/animals (evaluate soil/water)
organic production
food production (produce, meat, eggs)
food processing (cheese, jams, etc)
wetlands/wildlife/trails
other: _______________________________________

Which ventures would you consider?
bed & breakfast
campsite
catering
corn/bale/hedge maze
country craft/antique store
farm museum
fishing
festivals & events
tours or demonstrations
youth camps
farm/ranch vacation
rental cabins
cross country skiing
hay loft lodging
group/special functions
hay/sleigh/train rides
hiking
horseback riding
hunting
courses
farm display animals
u-pick/cut/gather/fish/grow
picnics
"rent the farm"
weddings
haunted barn/house
photography, wildlife viewing
farm direct stand/store
regional cuisine restaurant
other: _______________________________________

Target audience
(Consider what you will be offering, who you enjoy working with, profit margins by group)
families
school children
senior citizens
corporate groups
special interest groups
other: _______________________________________

Customers will come from:
local area (within one hour's drive)
regional
national and/or international

Tourists are welcome:
daily
weekends
seasonally (what seasons: ________________________________)
specific events and festivals

Food, drink offered
Already
have
Want to
have
Don't
want
on-site preparation
______
______
______
product sampling
______
______
______
resale of packaged foods
______
______
______

Site facilities
Already
have
Want to
have
Don't
want
parking
- # of cars _____
- # of buses _____
______
______
______
handicap access
______
______
______

Restrooms
Already
have
Want to
have
Don't
want
portables (#______)
______
______
______
permanent (#______)
______
______
______

Trash receptacles
Already
have
Want to
have
Don't
want
#______
______
______
______

Seating areas
Already
have
Want to
have
Don't
want
picnic tables
______
______
______
benches or bleachers
______
______
______
lawn seating
______
______
______

Other amenities
Already
have
Want to
have
Don't
want
barbecue grills
______
______
______
playground equipment
______
______
______
stage
______
______
______
protection from weather
______
______
______
other
______
______
______

Family members/employees
Already
have
Want to
have
Don't
want
guides
______
______
______
maintenance, cleaning
______
______
______
customer service
______
______
______
food preparation
______
______
______
other: _______________
______
______
______
# of workers from family enterprise: __________
# of non-family workers: __________

Marketing tools
Already
have
Want to
have
Don't
want
promotional materials
______
______
______
brochure
______
______
______
print advertising
______
______
______
road signs
______
______
______
press releases
______
______
______
familiarization tours
______
______
______
mailing list, newsletters
______
______
______
radio/TV advertising
______
______
______
other: _______________
______
______
______

Marketing techniques
Already
have
Want to
have
Don't
want
door to door
______
______
______
direct mail
______
______
______
partnership marketing
______
______
______
visitor information centres
______
______
______
word of mouth
______
______
______
community &
provincial network
______
______
______
website, e-mail newsletter
______
______
______
radio/TV advertising
______
______
______
other: _______________
______
______
______
Annual marketing budget: _________________________
Overall tourism business budget: ___________________

Competition and community
  • How many other ag tourism operators are there in the local area? _________________________________
  • Are any similar to what you would like to do? ______________________________________________
  • Are any compatible for you to market co-operate with? ________________________________________
  • What other types of events/attractions could you work with? ___________________________________
Facilities
Do any of your facilities need to be repaired/expanded/built to accommodate the tourism venture?

Item neededEstimated cost
_____________________________________________
.
_____________________________________________
.
_____________________________________________
  • What can I do to make my property and buildings appealing? ____________________________________
  • How can I ensure my visitors will have a memorable experience? ___________________________________
  • How can I ensure my visitor greeting will to add to the experience? ________________________________
Regulations to consider
building permits
business licence
health department inspections
liability insurance
signage
employment and revenues
tourism levy (4 rooms or more requires taxing)
industry accreditation (e.g. Alberta Hotel & Lodging Assoc.)
other local permits: ___________________________

Market base
  • Is there a large surrounding market base to support this venture?
  • Will the surrounding market base continue to grow in the future?
  • Can the surrounding service industry (lodging, meals) support tourists that would visit this place?
Enterprise compatibility
  • How does the net profit of ag tourism ventures compare with net profit of other ventures?
  • How well would the ag tourism venture utilize existing business resources?
  • How well would the ag tourism venture utilize existing labour?
  • How long would the products involved in the ag tourism venture stay fresh?
  • Could the product/service be used tomorrow, if not today?
  • Would an empty room or seat impact cash flow?
Property business plan
  • How would the ag tourism venture fit into the overall business financial plan?
  • What would be required financially to enter into an ag tourism venture?
  • Are the financial and human resource requirements available to support the new venture?
For more information on choosing a specific venture consult the following Alberta Agriculture, Food and Rural Development factsheets: For additional information
For more information on ag tourism development go to: www.agtourism.ca or contact a New Venture Specialist at the Ag-Info Centre at 1-866-882-7677.

Source: Agdex 888-9. October 2005.
 
 
 
 
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This information published to the web on October 1, 2005.