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An Analysis of Tennessee Agri-Tourism Visitors' Preferences University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Masters Theses Graduate School 5-2007 An Analysis of Tennessee Agri-Tourism Visitors’ Preferences and Expenditures Christopher M. Lindborg Follow this and additional works at: https://trace.tennessee.edu/utk_gradthes Part of the Economics Commons Recommended Citation Lindborg, Christopher M., "An Analysis of Tennessee Agri-Tourism Visitors’ Preferences and Expenditures. " Master's Thesis, University of Tennessee, 2007. https://trace.tennessee.edu/utk_gradthes/302 This Thesis is brought to you for free and open access by the Graduate School at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Masters Theses by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact [email protected]. To the Graduate Council: I am submitting herewith a thesis written by Christopher M. Lindborg entitled "An Analysis of Tennessee Agri-Tourism Visitors’ Preferences and Expenditures." I have examined the final electronic copy of this thesis for form and content and recommend that it be accepted in partial fulfillment of the equirr ements for the degree of Master of Science, with a major in Agricultural Economics. Kimberly L. Jensen, Major Professor We have read this thesis and recommend its acceptance: Burton C. English, Steven T. Yen Accepted for the Council: Carolyn R. Hodges Vice Provost and Dean of the Graduate School (Original signatures are on file with official studentecor r ds.) To the Graduate Council: I am submitting herewith a thesis written by Christopher M. Lindborg entitled “An Analysis of Tennessee Agri-Tourism Visitors’ Preferences and Expenditures.” I have examined the final paper copy of this thesis for form and content and recommendation that it be accepted in partial fulfillment of the requirements for the degree of Master of Science, with major in Agricultural Economics Kimberly L. Jensen Major Professor We have read this thesis and Recommend its acceptance: Burton C. English Steven T. Yen Accepted for the Council: Carolyn Hodges Dean of the Graduate School (Original signatures are on file with official student records.) An Analysis of Tennessee Agri-Tourism Visitors’ Preferences and Expenditures A Thesis Presented for the Master of Science Degree The University of Tennessee, Knoxville Christopher M. Lindborg May 2007 ACKNOWLEDGEMENTS Thank you all for your help. ii ABSTRACT Agri-tourism is a relatively new concept in the United States and Tennessee, but it is gaining popularity with agri-business owners as a source of additional income. Because agri-tourism is new, much is left to be understood about what motivates visitors to agri-tourism attractions. This thesis analyzes the results of a visitor survey of 6 agri- tourism attractions in Tennessee, with a focus on understanding the factors that are motivating people to visit agri-tourism attractions. It was found that the reasons for visitors to attend agri-tourism attractions encompass a complex web of both economic and social motives. Visitors who attend agri-tourism attractions also have an economic effect directly and indirectly on the Tennessee economy. iii TABLE OF CONTENTS Chapter Page CHAPTER 1: Introduction and Objectives……………………………...…………….1 1.2 Importance of Agri-tourism…………………………………………………....5 1.3 Objectives of the Research……………………………………………………..7 CHAPTER 2: Literature Review……………………………………….……..……......8 CHAPTER 3: Data and Methodology…………………………..………..…………..19 3.1 Probit Models of Preferences for Amenities/Services……………..…….......20 3.2 Economic Impact Analysis…………………………………………………...26 CHAPTER 4: Results………………………………………...………………………...31 4.1 Survey Data Descriptive Measures…………………………………………..31 4.1.1 Enjoy ability of Visit………………………………………………..31 4.1.2 Preferences of Services/Amenities…………………………………31 4.1.3 Prior Visits…………………………………………………………34 4.1.4 Group Size and Type………………………………………….........35 4.1.5 Length of Stay and Visit Planning Horizon…………………...…...37 4.1.6 Methods of Learning About Agri-tourism Attractions……………..37 4.1.7 Visitor Demographics……………………………………………...37 4.1.8 Average Visitor Expenditures…………………………………..….44 4.2 Economic Impacts Analysis……………………………………………….…44 4.2.1 Total Visitor Expenditure Calculations…………………………....44 4.2.2 Expenditure Impacts in IMPLAN…………………………………..49 4.2.3 IMPLAN Results for Non-Winery Firms……………………..….…50 4.2.4 IMPLAN Results for Winery Firms……………….………………..62 4.3 Estimated Probit Models of Importance of Amenities and Services…………72 4.3.1 Freshness Of Farms’ or Business’ Products………………………72 4.3.2 Easy Transportation Access………………………………………..75 4.3.3 On-Site Restrooms…………………………………………….…...77 4.3.4 Food and Drink for Purchase……………………………………...79 4.3.5 Seating………………………………………………………….......82 4.3.6 Picnic Areas………………………………………………………..84 4.3.7 Crafts or Souvenirs………………………………………………...86 4.3.8 Farm Scenery………………………………………………………89 4.3.9 Pricing of Products………………………………………………...91 4.3.10 Admission or User Fees…………………………………………..93 4.3.11 Product Samples………………………………………………….95 4.3.12 Adequate Parking…………………………………………………97 4.3.13 Learning about how Products are Grown or Made………………99 CHAPTER 5: Conclusion…………………………...…………………………….….102 List of References……………………………………………………………….……..107 Appendix A – Agri-tourism Visitor’s Survey…………………………………………..111 Appendix B – IMPLAN Results………………………………………………………..115 iv Appendix C – Correlation Matrix………………………………………………………153 Vita…………………………………………………………………………………......155 v LIST OF TABLES Table Page Table 1. Names and Definitions of Variables Used in Probit Models of Visitors’ Preferences for Amenities/Services to Tennessee Agri-tourism Attractions………………………………………………….23 Table 2. Visitors’ Importance Ratings of Amenities/Services by the Tennessee Agri-tourism Attraction, 2005 ……………………..............................33 Table 3. Visitors’ Methods of Learning About the Tennessee Agri-tourism Attraction, 2005...........................................................................................39 Table 4. State of Residence of Visitors to the Agri-tourism Attractions, 2005…………………………………………………………………………43 Table 5. Average Visitor Expenditures on Goods and Services at the Tennessee Agri-tourism Attractions………………………………………………45 Table 6. Calculations for Projecting Statewide Visitor Expenditures at Similar Agri-tourism Firms, 2005………………………………………………..........47 Table 7. Calculations for Projecting Number of Similar Agri-tourism Firms Statewide……………………………………………………………50 Table 8. Projected Tennessee Agri-Tourism Visitor Expenditure Direct Impacts Summary, 2005…………………………………………………….........51 Table 9. Projected Total Industry Output Impacts from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005……………….52 Table 10. Projected Direct Total Industry Output Impacts by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..53 Table 11. Projected Indirect Total Industry Output Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………….53 Table 12. Projected Induced Total Industry Output Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………….54 Table 13. Projected Direct, Indirect, and Induced Total Value Added Impacts from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005……………………………………………………..........55 Table 14. Projected Direct Total Value Added Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..56 Table 15. Projected Indirect Total Value Added Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..56 Table 16. Projected Induced Total Value Added Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..57 Table 17. Projected Employment Impacts from Visitor Expenditures vi at Tennessee Non-Winery Agri-tourism Attractions, 2005……………………………...58 Table 18. Projected Direct Employment Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..59 Table 19. Projected Indirect Employment Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..60 Table 20. Projected Induced Employment Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Non-Winery Agri-tourism Attractions, 2005…………………………………………………………..61 Table 21. Projected Total Industry Output Impacts from Visitor Expenditures at Tennessee Winery Agri-tourism Attractions, 2005…………………….63 Table 22. Projected Direct Total Industry Output Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Winery Agri-tourism Attractions, 2005………………………………………………………………………………………63 Table 23. Projected Indirect Total Industry Output Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Winery Agri-tourism Attractions, 2005…………………………………………………………..63 Table 24. Projected Induced Total Industry Output Impacts, by Industry Impacted, from Visitor Expenditures at Tennessee Winery Agri-tourism Attractions, 2005…………………………………………………………..64 Table 25. Projected Total Value Added Direct, Indirect, and Induced Impacts from Visitor Expenditures at Tennessee Winery Agri-tourism
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