Economic Values of Agritourism to Visitors: A Multi-Destination Hurdle Travel Cost Model of Demand

Abstract

Farm-based recreation, or agritourism, is growing in the USA, raising new interest in the potential benefits for consumers/travellers and communities. This study utilizes a hurdle travel cost model to investigate the demand for and economic benefits of agritourism. The analysis includes an estimation of consumer surplus as one means to estimate the market size for this sector. The standard travel cost model assumes a single-purpose recreational trip; but, as is the case with a number of categories of tourism, this assumption may not hold for all agritourism outings as travellers often visit other destinations. This paper analyses and compares four different models, each using different methods to distinguish between multiple-destination and primary-purpose trips. The findings reveal that consumer surplus ranges from $93 to $164 per person per trip for primary purpose travellers. Implications for accurately estimating the market size of agritourism, as well as a broader set of recreational sectors, are discussed.