Agriculture and Tourism - regional economic contributions and links: A case study of the wine and tourism industries in the Granite Belt region. Project Report
File version
Version of Record (VoR)
Author(s)
Brown, Richard
Siehoyono Sie, Lintje
Tong, Spencer Yumeng
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Date
Size
File type(s)
Location
License
Abstract
This project had three principal aims. Firstly, the main aim was to provide a better understanding of the potential for regional industry diversification by taking a close look at economic and other links between two rural/regional industries, in this case agriculture and tourism. To this end a case study of the Granite Belt (GB) region1 wine and tourism industries was selected as this is a relatively mature example in Queensland of an agritourism setting. Secondly the project aimed to develop and pilot a data collection methodology for wine producers, that will provide sufficient data for this study but also provide a format for future data collection and analysis on an ongoing basis, not only for wine producers but also adaptable to use for other small regional agricultural industries, particularly those with tourism links. Thirdly, the project aimed to provide a better understanding of regional tourism attraction clusters by exploring the interactions between wine, national park, and other attractions in providing a ‘critical mass’ of attractions for tourists. This is the first study to provide detailed economic information about the linkages between the wine and tourism industries in the GB region. The broader project consists of three main reports in addition to this overview report: Tourism in the Granite Belt Destination Report; Granite Belt Visitor Survey Report; and a report on The contribution of the grape and wine industry to the regional economy of Queensland’s Granite Belt. These studies present a considerable amount of detailed information produced by this research. In looking at a relatively small region and industries within it, it is often necessary to conduct original data collection because there is no reliable source of already collected data at this sub-regional level. This study took a pragmatic approach of utilising available but unpublished tourism data combined with a survey of visitors and a survey of Granite Belt grape and wine (GBGW) industry participants. The results of the surveys provide detailed information that was not available for that region. The economic survey of the GBGW industry was developed in consultation with industry representatives and the questionnaire was piloted with industry representatives. This survey could be modified for any small, regional agricultural industry. Linkages occur in the form of direct participation by GBGW businesses in the tourism industry through offering cellar door attractions and sales, food and beverage, accommodation, and events. The survey found that the GBGW industry offers a critical attraction for tourism to the GB region, with over 80 per cent offering on-site cellar door facilities (with 75 per cent of these open year-round), and 30 per cent offering on-site paid accommodation facilities for tourists. Thus, tourism-generated income is part of the income to these businesses. Linkages also occur through wineries being the number one attraction to the GB destination. Tourists to the destination attracted by the opportunity to visit wineries, also spend money in other businesses while in the GB region. In effect, the economic value of the GBGW industry is more than simply measured by sales and employment in the GBGW industry itself. And the economic value of the tourism industry relies on the GBGW as a major attraction. The use of Input-Output (I-O) analysis as the main economic modelling tool applied in this study provided useful information about the strength of the linkages between industries in a region; information that is not available otherwise. Looking at a small region posed other methodological challenges, especially as I-O tables are not available at the sub-regional level. This study demonstrated how such sub-region I-O tables can be constructed by combining original survey data with existing, larger-scale I-O tables. In terms of quantification of the strength of these linkages, it was estimated that the GBGW sector generates $2.26 worth of additional output in other sectors, for every $1 worth of gape/wine output, making it the sector with by far the strongest forward linkages in the GB regional economy. In addition, in terms of backward linkages, it was found that for every $1 of wine supplied, a further $1.23 in output was generated in other sectors of the GB economy supplying inputs, which also places it among the region’s strongest sectors in terms of backward linkages. It was estimated from the analysis of Tourism Research Australia (TRA) data that expenditure by visitors to the GB destination was $79 million per annum and conservatively $19 million was spent by visitors who visited wineries. The Visitor Survey found that 40 per cent of respondents nominated the presence of wineries essential to their decision to visit the GB destination and this points to a higher amount of around $30 million in visitor expenditure that could be attributed to the wineries as attractions. As one would expect, the research confirmed that the wine and tourism industries are clearly complementary rather than substitutes. From a policy perspective this indicates that it would not be feasible for the wine industry to expand to completely make up for lost tourism revenue if a disaster just affected tourism, or vice versa. The complementary nature of the industries does contribute to economic resilience in the region by diversifying its economic base. But this also means that policy approaches to improve economic resilience need to consider both industries together. This being the case points to the need for the GB tourism sector to diversify the range of attractions it offers tourists which would strengthen its resilience to economic impacts affecting the wine industry, without weakening the strength of the linkages between wine and tourism sectors in in “good times”. There are three main recommendations for Granite Belt tourism, arising from the Visitor Survey and the opinions of GBGW industry respondents, provided in Section 4 of this report. Additionally, policy options to benefit the GBGW industry should also consider implications for tourism. For example, given the issues identified with water shortages in recent times, improvement of water certainty will benefit both sectors. This will be a particularly important issue in the face of climate change challenges. Extending the findings of this research to broader observations for regions developing agritourism as an economic activity, several of the approaches of the GB region can provide guidance. Firstly, the GBGW provides a point of attraction and distinctiveness compared with other tourism and even other wine regions. The cluster of wineries is definitely part of the attraction and the collaboration of GBGW industry in developing a wine trail, wine tourism organisation and marketing of the region is also important. Secondly, collaboration is important both within the agricultural industry and with the broader tourism industry in a region. Collaboration of the GBGW industry with the broader tourism industry will be important to future destination attractiveness. Notably, visitors called for more attractions to be open during the week, and for information on what was open, to be made available in real time. Thirdly, for a region to mature beyond agritourism and become a more developed and mature tourism destination, supplementary attractions and activities need to be developed. While wine tourism continues to be a major attraction in the GB region, in order to extend tourism to weekdays and across seasons, other attractions have been suggested by both visitors and industry representatives.
Journal Title
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
DOI
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
© 2022 Rural Economies Centre of Excellence. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the publisher's website for access to the definitive, published version.
Item Access Status
Note
Access the data
Related item(s)
Subject
Tourism
Agriculture, land and farm management
3300 Social Sciences
Persistent link to this record
Citation
Driml, S; Brown, R; Siehoyono Sie, L; Tong, SY, Agriculture and Tourism - regional economic contributions and links: A case study of the wine and tourism industries in the Granite Belt region. Project Report, 2022