Hawaii Ag-Tourism

Here is the PDF file for the *Hawaii Ag-Tourism* Report.

agtour012808.pdf

Please visit the website for more information: http://www.nass.usda.gov/hi/

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Contact Information:
Mark E. Hudson, Director
USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512

Office: (808) 973-9588 / (800) 804-9514
Fax: (808) 973-2909
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Hawaii?s ag-tourism valued at $38.8 million in 2006

The value of Hawaii?s ag-tourism related activities (see definition below) is pegged at $38.8 million for 2006, up 14 percent from the $33.9 million generated in 2003. There were 112 farms statewide that had ag-tourism related income during 2006, a 40 percent decrease from 2003 as fewer agricultural producers in Hawaii have opened-up their operations to visitors to the farm experience through ag-tourism activities. Interest in ag-tourism continues to be strong as 84 farms either are involved in agtourism activities in 2006, or planned to be in the future. The distribution of ag-tourism throughout Hawaii has become more concentrated during the past three years as Hawaii County now accounts for half of the farms with ag-tourism and 34 percent of the total value. Honolulu County had 12 percent of the farms and 37 percent of the total value. Kauai County accounted for 13 percent of the farms and the value was 16 percent of the total. Maui County accounted for 25 percent of the farms and was the only county showing a decline from 2003 with 13 percent of the total value.

Ag-tourism is a commercial enterprise on a working farm conducted for the enjoyment, education, and/or active involvement of the visitor, generating supplemental income for the farm. Activities such as producing and selling products directly from the farm, operating a bed and breakfast, conducting educational farm tours, offering horseback riding, festivals, concerts, and many other on-farm activities qualify as agtourism.

The value of Hawaii?s ag-tourism related activities (see definition below) is pegged at $38.8 million for 2006, up 14 percent from the $33.9 million generated in 2003. There were 112 farms statewide that had ag-tourism related income during 2006, a 40 percent decrease from 2003 as fewer agricultural producers in Hawaii have opened-up their operations to visitors to the farm experience through ag-tourism activities. Interest in ag-tourism continues to be strong as 84 farms either are involved in agtourism activities in 2006, or planned to be in the future. The distribution of ag-tourism throughout Hawaii has become more concentrated during the past three years as Hawaii County now accounts for half of the farms with ag-tourism and 34 percent of the total value. Honolulu County had 12 percent of the farms and 37 percent of the total value. Kauai County accounted for 13 percent of the farms and the value was 16 percent of the total. Maui County accounted for 25 percent of the farms and was the only county showing a decline from 2003 with 13 percent of the total value.

Honolulu County shows largest gain

Compared to three years ago, Hawaii County increased the value of ag-tourism by 5 percent. Honolulu County saw a 58 percent decrease in farms with ag-tourism but the largest gain among all counties with an increase in value of 65 percent. Kauai County ag-tourism rose by $416,000 or 7 percent compared to 2003. Maui County registered the only decline in the State during this 3-year period as receipts from agtourism decreased from $6.8 million in 2003 to $5.0 million in 2006, a 26 percent decline.

Large operations generate most of ag-tourism?s value

Farms of all sizes conducted ag-tourism activities during 2006. These ag-tourism farms ranged from those with total farm sales of less than $2,500 a year to those well over $1 million per year. Large operations ($250,000 or more in total annual farm sales), however, accounted for most of the dollar value of ag-tourism. The top 20 percent of all farms with ag-tourism generated 90 percent of the total revenue. Only approximately 2 percent of all Hawaii?s farms engaged in ag-tourism during 2006. The 40 percent decline in the number of ag-tourism operations between 2003 and 2006 is evidence that many previously involved in agtoursim decided this venue did not fit into their business plans.

Sale of farm products leading source of ag-tourism income

Revenues from ag-tourism, which includes many various activities, was broken down into several categories. Onfarm sales direct to farm visitors was the leading category, with $12.1 million, followed by retail sales (products from other farms or souvenir items), outdoor recreation, educational, and others.

Most ag-tourism operations plan to maintain or expand activities in the future

Eighty-one percent of all ag-tourism operations in 2006 were planning to maintain or expand their operations in the future. Only 4 percent, or 5 farms, of the total indicated that they will discontinue or reduce their ag-tourism activities in the future. The 2006 Ag-tourism survey also showed that flower and/or nursery operations remained the most popular type of ag-tourism operation. Livestock and fruit farms were tied for second.

Additional features of Hawaii?s 2006 ag-tourism industry

? Busiest time of the year
. . .54 percent of the operations that reported ag-tourism activity in 2006 said that business was the same year round. Of the remaining responses, winter and summer were identified as the most significant peak periods, at 22 percent and 13 percent, respectively. Spring came in at 7 percent and fall at 4 percent.

? Where do ag-tourism visitors come from?
. . .mainland visitors constituted the highest percentage of agtourism visitors, at 62 percent, followed by Hawaii residents at 20 percent, and international visitors at 18 percent.

? Problems faced by ag-tourism operators
. . .farmers were asked to rank problems or obstacles they faced in start-up or operation of ag-tourism activities. Zoning restrictions was ranked as the number one problem, followed by funding. Building permits was the third most common problem, and liability issues and insurance was ranked fourth. Other problems ranking in order were conflicts and interferences with on-going farm activities, signage restrictions, labor, interaction with public, marketing, maintenance of state-owned properties, and community/cultural oppositions.

? Point of sale
…many operations received orders for products related to ag-tourism after the visitors returned home. Out of these, 74 percent of operations reported 0-25 percent of their sales from off-site orders, 25 percent of operations reported 26 to 50 percent, and 1 percent said that over 50 percent of their ag-tourism related sales came from off-site orders.

Hawaii Ag-Tourism is a special publication by the Hawaii Agricultural Statistics (HAS), 1428 S. King St., Honolulu, HI 96814,
Telephone: (808) 973-9588, FAX: (808) 973-2909. All publications are available on the Internet at http://www.nass.usda.gov/hi/
National Agricultural Statistics Hawaii Field Office
Hawaii Department of Agriculture . In Cooperation with: Agricultural Development Divistion