The growth of agritourism in rural New Zealand - who can benefit from this ever-increasing trend?

From off-grid Airbnbs, to experiencing ‘life on the farm’ and access to remote and private locations, the move to agritourism in rural New Zealand is on the up - providing numerous opportunities for property owners to benefit from multiple income streams.

And now we’ve got a bunch of exciting new ventures for property owners and visitors alike. But what exactly is agritourism, who can benefit from what it has to offer and what are some of the challenges operators may face? 

At its core, agritourism is about property owners diversifying their income. Agritourism NZ, the industry body for agritourism in New Zealand, describes it as ‘a combination between agriculture and tourism, to promote sustainable tourism, support local agriculture and provide economic benefits to primary producers and rural communities’. 

You also don’t have to look far to find many different real-life examples of agritourism ventures. In recent years, glamping escapes have become an extremely popular option for rural and semi-rural properties. These are typically off-grid accommodations, with all the modern comforts and ‘rustic’ elements - such as open fires and bathtubs under starlit skies. Providing visitors with unique lodgings, day-to-day farming operations can remain largely undisturbed while also allowing for another way to profit off the property. 

Other agritourism businesses include farm tours, mountain bike and hiking trails on farms, horse treks, a creamery with cheesemaking tours and even simply making a picnic area available for tourists to enjoy lunch while sunflowers bloom around them.

Opening up properties for hunting is another favourable venture for many farmers. A large Horowhenua rural property sold in early September, marketed as an impressive recreational hunting block, along with well maintained all-terrain and four-wheel drive vehicle tracks - and it was noted that opportunities for future development include tourism hunting (as a deer park), horse trekking, mountain biking or bird watching. 

But sometimes, an agritourism business can also come about by accident. For example, last year, Richard Thomson, a PGG Wrightson Real Estate rural and lifestyle sales consultant, was involved in the sale of a dirt bike park in Hamilton. What started out as a place to simply give the property owner’s teenage children somewhere to ride their dirt bikes, grew into Thundercross.

"This is a well-established, successful adventure tourism business that was still being used as a dry stock farm by the previous owners. And the purchasers are excited about expanding it to include other activities.” 

Richard also recently sold Ratanui Farm in Raglan, a working farm that has a series of separate accommodations and facilities for conferences, weddings and various other events.   

Interest in agritourism has increased so much over the past five to 10 years that there are now training programmes available through Agritourism NZ. It provides current and future agritourism businesses the tools and advocacy required to run a successful venture, and understand the best way in which to develop and market it to the desired audience. 

But while considering ways to increase a property’s income is attractive to many, Richard says he thinks it is important for people to consider where their passion lies, and if it is something they can see themselves doing long term. 

“Depending on what you think you might be able to offer paying visitors, there could be quite a process you have to go through to get there - especially if there is a health and safety aspect to it (for things like mountain biking and other adventure activities).

“It needs to be something you’re interested in, as the punters will see it. It shouldn’t be done just for the money aspect - as it’s often a big investment and a significant commitment to ensure its success.” 

He also advises carefully considering your ‘niche’. 

“The secret to a thriving agritourism business is being unique. For the dirt bike park, that was ideally located to a significant target market. And the Ratanui Farm, Raglan is the drawcard as there is no shortage of people who want to stay there, plus it’s relatively easy to access from two large metropolitan areas. 

“But if you’re more isolated, you have to have a point of difference that will really entice people to come and visit/stay. Currently, the demand is there for these types of ventures as there isn’t enough supply to meet the needs of domestic and international tourists. However, I think if it becomes more ‘mainstream’, you’ll need to make sure you can stand out in the crowd. 

Down south, PGG Wrightson’s North Otago, Mid and South Canterbury sales manager Calvin Leen says he has definitely seen an uptick in agritourism operators over the past three to five years, attributing some of this growth to family farm returnees. 

“Specifically in the high country, I’ve seen enterprises where the grown kids have come home to their parent’s property and together they work on diversifying the income stream to benefit the farm’s revenue. 

“Whether it’s set up as a separate business or it is incorporated into the wider farm operations, the younger generation are able to grow their equity and if it is in the plan sooner or later - mum and dad can start moving away from the property and towards retirement.”

Calvin has even witnessed some ventures who have earned very substantial income, enabling those businesses to diversify into even more revenue streams.  

“From merino clothing to luggage and other products, they are selling directly to their clients and because of this, their margin opportunity also increases. It’s about creating a brand that can stand on its own right, and I certainly know of a number of those who have ended up with very sophisticated operations - if that was what the vision was for the business.”   

But before jumping on the agritourism trend, Calvin recommends speaking to the experts. 

“It’s about working with your accountant to understand the structure of the new entity, and a financial advisor in relation to what capital is required to invest in establishing the business. Then you need to have a really clear marketing strategy, as this is needed to get your venture in front of your target market. 

“I also think you should consider the rationale for why you want to get into agritourism and this needs to go deeper than just bringing in more income. What is the long term plan?”

At a time when commodities continue to fluctuate, particularly wool, Calvin says agritourism offers farmers and rural property owners an opportunity to grow their income while simply utilising the asset they’ve already got. And for him, that’s an exciting prospect. 

“When these fresh ideas come along and they have this renewed energy to do something a bit different, I think it’s really great.”  

Because our rural and lifestyle team here at PGG Wrightson Real Estate live in your community too, you can rest assured we have all the local knowledge to get you the result you’re after.

So if you’re thinking about moving on, or are looking for an exciting new property to purchase - give us a call. Our friendly, experienced sales consultants are waiting to hear from you today, tomorrow, or whenever works for you!