Agro-tourism and recreation

Hi, I want to see the effect of increasing agro-tourism and recreation on farm land. I can get average income from agro-tourism and recreation from the USDA Census and I am thinking I can increase proprietor income in sectors 493 and 496 by estimated spending increases for these activities. Does this sound correct? I am primarily interested in things like site seeing, hunting, fishing, and general agro-tourism. But I am also interested in the effects on local hospitality, fuel and restaurant sectors as these should increase too. Would these need to be broken out and modeled separately or are the included in the production functions for 493 and 496? I want to avoid double counting but I would like to capture all effects. Thanks
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  • HI Dan. You certainly can increase Proprietor Income if you feel that the money goes to proprietors for their personal spending. But depending on the type of agro-tourism, there may also be Intermediate Expenditures associated to providing these services that may or may not be equal to the average rate of Proprietor Income per dollar of Industry Sales. Thus you may need to find some additional information to help you determine a ratio of income to Intermediate Expenditures for these special functions. Additionally agro-tourism tends to be a byproduct of standard agricultural productions and thus the Sectors you have selected may actually not be the best overall fit for the type of production associated to agro-tourism, a more traditional Ag Sector may be more appropriate. You can examine the purchases associated to each Sector in the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab. This will allow you to make the most educated decision about an appropriate spending pattern. Alternatively if you think that the increased income goes solely to the proprietors with no change in Intermediate Expenditures, a better choice would be to model with a Labor Income Change and Sector 6001 Proprietor Income. Regardless of which Sector you choose to model the Ag activity, the only value that should be entered into that Sector is the value actually going directly into the agro-tourism. Fuel, restaurants and other tourism activities are not included in the spending pattern and their values should be modeled separately. To do this you will need to find estimations of how much tourists drawn to the region spend in the various categories like fuel and restaurants and then create an Event for each value associated to its respective Sector. As long as there is no overlap in spending between the value entered into agro-tourism and the values of other tourists activities you don’t need to worry about any double-counting. One other note, generally speaking, we recommend saying that the other tourist activities are supported by the agro-tourism, it’s typically not safe to say this activity is created unless you can demonstrate that those sales occurred exclusively as a results of agro-tourism in the area, which for most regions is difficult to defend.
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  • What I am trying to get at, on a state level, is the impact of shift from agricultural production to diversified production including conservation and tourism. It seems that if both conservation and tourism are best modeled in agricultural industries that IMPLAN can't really get at this distinction. Is that right or is there something I am missing? Edit: If we want to say they are now devoting 50% of their land to tourism rather than agriculture would it make sense to model it in the tourism industry 496 if we are characterizing this as a new economic opportunity?
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  • If you are looking at alternative usage of the land i.e. crops no longer being produced and the land being shifted to other usages, this is a complicated but doable problem. The key is to look at the economics of the needs of the shift in land usage. You would have net loss of agricultural usage, 50% less crop production, which would have a negative impact on the economy, with an increase of tourism activities, which would have a positive impact. Choosing the appropriate sector(s) for the tourism-related spending depends on how the money will be spent. You can use IMPLAN’s “Sector Search” feature in Help>Sector Search. These are the NAICS codes covered in sector 496. It would be a good choice if you think that these types of activities will be the primary function of the new land: Archery ranges 496 713990 Athletic clubs (i.e., sports teams) not operating sports facilities, recreational 496 713990 Aviation clubs, recreational 496 713990 Ballrooms 496 713990 Baseball clubs, recreational 496 713990 Basketball clubs, recreational 496 713990 Bathing beaches 496 713990 Beach clubs, recreational 496 713990 Beaches, bathing 496 713990 Billiard parlors 496 713990 Billiard rooms 496 713990 Boating clubs with marinas 496 713930 Boating clubs without marinas 496 713990 Boccie ball courts 496 713990 Bowling leagues or teams, recreational 496 713990 Boxing clubs, recreational 496 713990 Boys' day camps (except instructional) 496 713990 Bridge clubs, recreational 496 713990 Camps (except instructional), day 496 713990 Canoeing, recreational 496 713990 Carnival ride concession operators (i.e., supplying and servicing in others' facilities) 496 713990 Coin-operated nongambling amusement device concession operators (i.e., supplying and servicing in others' facilities) 496 713990 Concession operators, amusement device (except gambling) and ride 496 713990 Country clubs 496 713910 Cross country skiing facilities without accommodations 496 713920 Curling facilities 496 713990 Dance halls 496 713990 Discotheques (except those serving alcoholic beverages) 496 713990 Downhill skiing facilities without accommodations 496 713920 Driving ranges, golf 496 713990 Fireworks display services 496 713990 Fishing clubs, recreational 496 713990 Fishing guide services 496 713990 Fishing piers 496 713990 Flying clubs, recreational 496 713990 Football clubs, recreational 496 713990 Four season ski resorts without accommodations 496 713920 Galleries, shooting 496 713990 Girls' day camps (except instructional) 496 713990 Gocart raceways (i.e., amusement rides) 496 713990 Gocart tracks (i.e., amusement rides) 496 713990 Golf and country clubs 496 713910 Golf courses (except miniature, pitch-n-putt) 496 713910 Golf courses, miniature 496 713990 Golf courses, pitch-n-putt 496 713990 Golf driving ranges 496 713990 Golf practice ranges 496 713990 Guide services (i.e., fishing, hunting, tourist) 496 713990 Guide services, fishing 496 713990 Guide services, hunting 496 713990 Guide services, tourist 496 713990 Gun clubs, recreational 496 713990 Hockey clubs, recreational 496 713990 Hockey teams, recreational 496 713990 Horse rental services, recreational saddle 496 713990 Horseback riding, recreational 496 713990 Hunting clubs, recreational 496 713990 Hunting guide services 496 713990 Ice hockey clubs, recreational 496 713990 Jukebox concession operators (i.e., supplying and servicing in others' facilities) 496 713990 Kayaking, recreational 496 713990 Lawn bowling clubs 496 713990 Marinas 496 713930 Marine basins, operation of 496 713930 Miniature golf courses 496 713990 Mountain hiking, recreational 496 713990 Nightclubs without alcoholic beverages 496 713990 Nudist camps without accommodations 496 713990 Observation towers 496 713990 Outdoor adventure operations (e.g., white water rafting) without accommodations 496 713990 Pack trains (i.e., trail riding), recreational 496 713990 Paintball, laser tag, and similar fields and arenas 496 713990 Para sailing, recreational 496 713990 Picnic grounds 496 713990 Pinball machine concession operators (i.e., supplying and servicing in others' facilities) 496 713990 Ping pong parlors 496 713990 Pool halls 496 713990 Pool parlors 496 713990 Pool rooms 496 713990 Racetracks, slot car (i.e., amusement devices) 496 713990 Raceways, gocart (i.e., amusement rides) 496 713990 Recreational camps without accommodations 496 713990 Recreational day camps (except instructional) 496 713990 Recreational sports clubs (i.e., sports teams) not operating sports facilities 496 713990 Recreational sports teams and leagues 496 713990 Riding clubs, recreational 496 713990 Riding stables 496 713990 Rifle clubs, recreational 496 713990 River rafting, recreational 496 713990 Rowing clubs, recreational 496 713990 Saddle horse rental services, recreational 496 713990 Sailing clubs with marinas 496 713930 Sailing clubs without marinas 496 713990 Sea kayaking, recreational 496 713990 Shooting clubs, recreational 496 713990 Shooting galleries 496 713990 Shooting ranges 496 713990 Skeet shooting facilities 496 713990 Ski lift and tow operators 496 713920 Ski resorts without accommodations 496 713920 Skiing facilities, cross country, without accommodations 496 713920 Skiing facilities, downhill, without accommodations 496 713920 Slot car racetracks (i.e., amusement devices) 496 713990 Snowmobiling, recreational 496 713990 Soccer clubs, recreational 496 713990 Sports clubs (i.e., sports teams) not operating sports facilities, recreational 496 713990 Sports teams and leagues, recreational or youth 496 713990 Stables, riding 496 713990 Summer day camps (except instructional) 496 713990 Tourist guide services 496 713990 Trail riding, recreational 496 713990 Trampoline facilities, recreational 496 713990 Trapshooting facilities, recreational 496 713990 Waterslides (i.e., amusement rides) 496 713990 White water rafting, recreational 496 713990 Yacht basins 496 713930 Yacht clubs with marinas 496 713930 Yacht clubs without marinas 496 713990 Youth sports league teams 496 713990 You can also look at sectors’ spending patterns in Explore>Social Accounts> Balance Sheets>View By: Industry Balance Sheet>Commodity Demand. You can learn more about NAICS codes here: http://www.census.gov/eos/www/naics/ In addition to identifying the proper sector(s), you will need to have an estimate of how much money tourists will spend on that type of recreation. If you also think that tourist activities on the land will generate additional hotel stays, restaurant meals, convenient store sales, etc., you could determine the dollar amounts of these activities and model these in IMPLAN as events related to your tourists. If you feel that usage would be more like a park (bike and walking paths and less permanent structural activities), then another alternative would be to use the state & local government spending patterns for park construction and maintenance as these are the closest spending patterns to park activity available in IMPLAN, even if the parks would be privately maintained. Again you would need to have an idea of the costs of this type of activity to use in the model and in this case you would need to know that labor income value for the looking at the income coming into the farmer and also the labor payments to any workers who contribute to the maintenance of the area. Again, the principle of netting the lost crop values applies here. Conservation doesn't typically generate a lot of economic impact because there is typically little production, if any, associated with it. However, if some maintenance of the land was required the state & local government spending patterns for parks would be the best choice for this activity as well. You can also mention non-market benefits, e.g. increased species diversification, flood protection, social well-being, etc., that can be mentioned in a report but not quantified with IMPLAN. We have attached some papers written by others who have done reports about agro- tourism. Note that we don’t offer opinions about these studies, but are providing them to you to help generate ideas. [attachment=629]h4fe1fb8.pdf[/attachment] [attachment=630]h8764a93.pdf[/attachment] [attachment=631]hb0a2946.pdf[/attachment]
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