Economics of Agro-Tourism in Maharashtra
Journal Title: Indian Journal of Agriculture Business - Year 2018, Vol 4, Issue 2
Abstract
The investigation was conducted with, keeping in view the overall objectives of studying the Socio-Economic Appraisal of Agro-tourism in Maharashtra. The study was conducted to examine costs, (fixed cost and variable cost), gross returns, benefit-cost ratios, payback period, break-even point, and problems faced by the ATC (AgroTourism Center) owners. Maharashtra is one of the major tourist centers and there is large scope and great potential to encourage farmers to establish small and viable subsidiary agribusiness such as Agro-tourism in rural areas. The data were based on a sample of 4 ATCs selected from three districts; two from Pune, one from Satara and one from Ahmednagar district. The primary data were obtained by directly contacting the ATC owners. With the help of specially designed schedules for collecting the primary data relating to the objectives of study. The secondary data were scanned from published sources viz; research journals, books, reports, websites, etc. The study revealed that, the fixed cost incurred on establishment i.e., initial investment costs was the highest (i,e. 2,04,32,200) for JMKPK (Jay Malhar Krishi Paryatan Kendra, Morachi Chincholi, 2008), followed by AETB (Agri and Eco-Tourism, Baramati, 2004) (1,54,40,000), VATW (Vishwakirti Agri-Tourism, Wadegavhan, 2014) (1,08, 38,400) and JATB (Janki Agro-Tourism Borgaon, 2015) (67,62,000) ATC. The major items of the fixed cost were land, construction structures of ATC, irrigation structures and tools, implements and machineries of ATC. Variable cost of ATC was highest (i.e. 75,72,433) for AETB ATC, followed by JMKP (69,16,426), VATW (25,72,304) and JATB (23,62,485) ATC. The major items of the variable cost were maintenance cost of ATC and labour charges of ATC. The tourist’s arrival were maximum at AETB (28,576), followed by JMKP (21,387), VATW (10,337) and JATB (8,792). Benefit-cost ratios of ATCs were worked at variable cost and total cost. The B: C ratios of JATB, AETB, JMKP and VATW at VC were 1.36, 1.39, 1.37 and 1.79, respectively. The B: C ratios of JATB, AETB, JMKP and VATW at TC were 0.86, 0.99, 0.86 and 0.97, respectively. The running of ATC at VC was found profitable; however, the ATCs were seen to be in loss at total cost as the B: C ratios noticed to be little less than unity (one) this is because of negligence towards the Agro-Tourism in starting years. The payback period of ATCs at overall level was 7.56 years i.e. length of time required to recover the initial investment of outlay was 7.56 year of Agro-tourism business. The break-even point considering the physical unit (i.e. number of visitors) and in monetary terms. The break-even point in physical unit is at which the ATC owner neither looses nor makes a profit in terms of number of tourists arrived. The BEP at monetary terms indicated there is a loss of running Agro-tourism business with small numbers. The major problem faced by the ATC owners in establishment and maintenance of ATCs, were lack of sufficient funds for establishment of ATC, non-availability of labour in time, high wage rates, non-availability of literature related to Agro-tourism and its running/operation practice, complexity in getting license from the government, maintenance cost is high, lack of trained personals in Agro-tourism and other related problems. The study suggested that, providing scientific and practical knowledge about ATCs in establishment and maintenance is essential. Owners be trained for providing quality services and facilities to tourists. Provision of a complete tourism package, provision of sales and marketing support, more awareness programmes, developing contacts with the urban and Semi-urban people, Schools, Colleges, NGOs, clubs and other organizations, provision of license to farmers for lifetime and training had been suggested through NABARD Schemes. Provision of liberal and concessional loans with simple interest rate and two years gestation period and repayment period of 15 years be provided. Promoting Ayurvedic and Naturopathy through Agri-Tourisam centers can be a complimentary combination to ensure optimization in profit.
Authors and Affiliations
D. B. Yadav
Keywords
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- EP ID EP565556
- DOI 10.21088/ijab.2454.7964.4218.1
- Views 222
- Downloads 0
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