Agritourism Guidebook: Hawai‘I County Justin Yeh Department of Natural Resources and Environmental Management

Entrepreneur’s Toolbox November 2015 ET-15 Agritourism Guidebook: Hawai‘i County Justin Yeh Department of Natural Resources and Environmental Management Acknowledgements The Hawai‘i County Guidebook for Agritourism and Nature Tourism wouldn’t be possible without help from the following individuals and organizations: Peter Garrod (UH Manoa), Lani Weigert (Hamakua Mushrooms), David Morgan (Kualoa Ranch), Troy Keolanui (OK Farms), Hawaii Agricultural Tourism Association, Kylie Matsuda (Kahuku Farms), and UH Manoa, as well as the State of Hawai‘i Resource Conservation and Development Councils. Thanks are also due to the authors of Agritourism and Nature Tourism in California Guidebook, Holly George and Ellie Rilla. Without their help and guidance towards resources and information, this guidebook would not be as complete and expansive as it is. On behalf of the Natural Resources and Environmental Management department at the College of Tropical Agriculture and Human Resources Tourism is the largest economic driver within the of the University of Hawai‘i at Manoa, I would like to state of Hawai‘i. According to the 2012 Annual Visitor thank those mentioned above and the others behind the Research Report by the Hawaii Tourism Authority scenes for your help in this publication. (HTA), tourist spending and total visitors increased to a record high in that year: Approximately 8,029,000 Introduction visitors came and spent $14.4 billion dollars. Among Agritourism is defined broadly as any agriculturally the four larger Hawaiian islands, O‘ahu dominates the based operation or activity that brings visitors to a farm tourist industry, with Maui second and Hawai‘i Island or ranch. A relatively new industry in Hawai‘i, it has third. Hawai‘i Island and County recorded 1,581,690 enormous potential not only to provide tourists with an visitors that spent a total of $1.7 billion dollars in 2012. alternative to the regular Hawai‘i vacation, but also to This guidebook focuses upon Hawai‘i County but can connect the Islands’ residents with its producers and to be applicable to the other counties within the state of strengthen communities. Agritourism has the potential Hawai‘i. Hawai‘i County has a strong tourism economy to sustain agricultural practices due to a steady stream but also has room to grow in this area, and it has the of income that is less dependent on weather, markets, largest land area dedicated to agricultural use in the pests, or diseases. Published by the College of Tropical Agriculture and Human Resources (CTAHR) and issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in co- operation with the U.S. Department of Agriculture, under the Director/Dean, Cooperative Extension Service/CTAHR, University of Hawai‘i at Mānoa, Honolulu, Hawai‘i 96822. Copyright 2014, University of Hawai‘i. For reproduction and use permission, contact the CTAHR Office of Communication Services, [email protected], 808-956-7036. The university is an equal opportunity/affirmative action institution providing programs and services to the people of Hawai‘i without regard to race, sex, gender identity and expression, age, religion, color, national origin, ancestry, disability, marital status, arrest and court record, sexual orientation, or status as a covered veteran. Find CTAHR publications at www.ctahr.hawaii.edu/freepubs. UH–CTAHR Agritourism Guidebook: Hawai‘i County ET-15 — Nov. 2015 state. Hawai‘i County is also at the forefront of passing Agritourism can help with all these problems. new bills to allow for some agricultural producers to Farmers and ranchers with the vision, skills, and use agritourism without having to go through a special commitment can create an enterprise that is able use permit. to sustain their agricultural business and lifestyle. Agriculture in Hawai‘i was once the state’s dominant However, developing an enterprise that will be able to economic driver but has since declined since the sugar accommodate and entertain visitors isn’t simple. Issues plantations shut down in 1996. However, it still brings in that need to be addressed before an operator digs into $595.4 million according to a report in 2009. Considered it include liability, public safety, animal well-being, to still be a big part of the economy, agriculture needs to permitting, and financial backing. grow within the state to help improve Hawai‘i’s overall The authors hope that this guidebook will help self-sufficiency. Small and medium-sized farmers in the nurture those willing to participate in agritourism within United States are challenged to sustain farming activities the state. It’s written to help operators determine the given rising input costs and competition from large-scale potential for a tourism enterprise and the steps necessary domestic and overseas production. In the U.S., small and to establish one. It is divided into 8 chapters that go from medium-sized farms (gross income < $250,000 annually) general guidelines to specific advice and also includes comprise around 90% of the total farms (USDA 2012). further resources that are available for farmers and In 2012 the USDA stated that 96% of farms within the ranchers to help develop their operations. state of Hawai‘i are designated as small farms. The costs of running a small farm are supplemented by off-farm incomes in order to keep the operations sustainable. 2 UH–CTAHR Agritourism Guidebook: Hawai‘i County ET-15 — Nov. 2015 Chapter 1. and more disconnected from our food sources, people Introducing Agritourism become curious about how farmers and ranchers and Nature Tourism produce the commodities they need. These forms of tourism provide opportunities for farmers and ranchers Rural tourism is the business of providing tours and to diversify and protect themselves from fluctuating services to people who travel to rural areas for pleasure. markets and also allow landowners to benefit financially Examples of this are resorts, agricultural tours, off-site from different land uses. farmers’ markets, and other leisure and hospitality Wise land use is important not only for tourism and businesses. There are two types of rural tourism that the general public but for rural communities as well. involve farmers and ranchers, agritourism and nature Sustainable land practices help to build sustainable tourism. They take place on farms and ranches, diversify economies. When operators make good decisions about agricultural operations, and can generate additional practices, it strengthens options for future generations, income, at the same time fostering thoughtful care of because of the long-term well-being they promote. the land. These industries have the opportunity to teach visitors Agritourism and nature tourism are rapidly growing the values and benefits of farms and ranches. They can industries within the U.S. because they resonate with turn tourists into allies of family farms and ranches and urbanized residents who are searching for a “real of the wildlife, habitat, and open space these operations lifestyle” experience. As our society becomes more conserve. 3 UH–CTAHR Agritourism Guidebook: Hawai‘i County ET-15 — Nov. 2015 What Is Agritourism? Associated Recreation). This means farmers, ranchers, It is a business conducted by farmers or ranchers on and rural communities have great economic potential. their working agricultural, horticultural, or agribusiness Providing amenities these tourists seek, such as guides, operation for the enjoyment and education of visitors. It lodging, food, and transportation, farmers or ranchers is intended to promote farm products and to generate can utilize their lands to help protect and conserve open additional farm income. In the process, agritourism spaces. provides visitors with entertainment, recreation, participation, and education. It offers a chance to operate State Benefits and display an agricultural lifestyle, from conventional In the state of Hawai‘i there is a general excise tax (GET) mono-cropping to agroforestry. of 4% that is put upon the supplier, not the consumer, but which may be passed on to the consumer. In addition to What Is Nature Tourism? the GET, there is also a transient accommodations tax Another form of rural tourism, it entails a commercial of 9.25%. So not only do agritourism and nature tourism operation working towards its visitors’ enjoyment, improve the local economy; they also support the state understanding, and appreciation of natural areas while as well. at the same time conserving the local ecological, social, and cultural values and improving the local economy. It Consumer Trends focuses on nature-based travel experiences while striving In the U.S., the number-one activity tourists participate for long-term rural well-being. Landowners are working in is shopping, followed by outdoor activities, visiting to enhance and market natural habitats and wildlife historical places and museums, experiencing national populations, even in small areas of their land that go and state parks, and taking part in cultural events and uncultivated, by attracting wildlife by planting native festivals. species and building demonstration areas. In Hawai‘i, over 80% of travelers to the Islands came here for pleasure. The four largest markets of visitors, Travel Trends in order, come from U.S. West, U.S. East, Japan, and Understanding the tourist’s choices allows for a better Canada. Of the largest group, the U.S. West visitors, plan and a more successful agritourism and nature 81.5% were returning visitors, which means they are tourism operation. usually looking for new experiences in the Islands. The The state of Hawai‘i is dependent upon travelers U.S. West’s largest age group were those 41–59 years from all over the world. In 2012 it was reported that old (33%) of the 3,178,824 visitors from the U.S. West. over 8,028,000 visitors came to the state. Those visitors 11.1% of the total U.S. West travelers wanted to stay in spent $14.4 billion to help support Hawai‘i’s economy.

Load more