Agritourism in the Arkansas delta byways: assessing the economic impacts

Large parts of rural USA are seeing gradual decline in economic fortunes. The small and medium scale farms are especially dwindling in numbers and their incomes are stagnating. Towards revitalizing the rural agrarian economies, agritourism is being seen as a catalyst to supplement income and trigger economic growth in some parts of the USA. This study focuses on a 15‐county region in the Arkansas Delta Byways (ADB) predominantly dependent on agriculture. The study uses agritourism visitor and expenditure data to estimate the baseline economic impacts in 2007 and predict potential impacts in 2012 on the region's economy. The study is conducted in two stages; the first stage involves statistical predictions of future agritourism visitors using time series extrapolation models. In the second stage, an input–output (I–O) framework is used to estimate the economic impacts relating to sales, employment, income and tax revenue to federal, state and local governments. Three alternate scenarios, where the agritourism visitors as a percentage of total visitors increases from the baseline level to hypothetical higher levels as a result of the state's agritourism promotion and initiatives are examined, and the net economic gain from additional visitors are estimated. Findings suggest that farms will benefit from increases in income but do not see any significant increase in jobs mainly due to the family nature of the enterprises. Economic benefits from on‐farm hunting far outstrip other agritourism activities and their impacts reverberate across many other sectors of the local economy. Copyright © 2009 John Wiley & Sons, Ltd.