The Role of Agritourism in Rural Economy Diversification: Do Georgian Farmers Fully Leverage Its Potential?

Abstract

Agritourism development is considered to be an effective way to raise the income of rural households and address their vulnerabilities associated with overdependence on agricultural activities by proposing additional activities on the farms. This has incentivized farmers and governments to introduce and invest in developing so-called “non-agricultural” undertakings, including under EU CAP. However, as various scholars have identified based on economic analysis, agritourism demonstrates quite varying results as regards farm size, output, experience, location and other factors. Its complex and varying nature has only been exacerbated by the non-existence of a single definition and cross-cutting nature causing confusion with rural tourism. In light of the newly adopted law of Georgia “on Tourism” and proposed tax cuts for agritourism service providers, this research aims to identify agritourism service providers in Georgia and the activities they offer to the visitors by conducting qualitative in-depth interviewing and on-site observation enabling to elaborate recommendations to better manage and address the needs of rural households in diversifying their income and making effective use of the existing agritourism potential. In addition, the research contributes to the everlasting challenge to define agritourism as it is essential prerequisite to develop adequate and needs-based policy framework for agritourism, allowing to provide tailored support to rural households in a long run. In this regard, local context should serve as the cornerstone.