Synergies between Farming and Rural Tourism: Evidence from Flanders

Support for rural development and agri-environment measures is often defended on the basis of the contribution of farming to the attractiveness of rural areas and the growing rural tourism sector. Farmers may benefit from the presence of tourism by offering accommodation or selling farm products to tourists. We analyse rural tourism data for Flanders to determine whether agricultural amenities contribute to the price rural tourists are willing to pay for lodging at a farm. We find that farming practices do indeed influence the attractiveness of an area for tourism and have an impact on the prices that can be charged for accommodation. Amenities from agriculture such as permanent grassland have a positive influence on rental prices. However, the presence of intensive agricultural and livestock farming and associated polluting activities decrease the attractiveness of rural regions for tourism. Farm tourism is found to make an important contribution to the farm income and economy of a rural region. Farm tourism constituted more than 30 per cent of the farm income of certain farms. Overall, our findings support the idea of major synergies between farming and rural tourism. Strengthening this relationship may therefore be a good strategy for countryside management and rural development. Copyright The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2006.