Community-based Rural Tourism and Entrepreneurship : A Microeconomic Approach

To meet the rising demand for scientific evidence in the context of rural tourism research, this book explores tourism and tourism-related diversification activities performed by farming households and entrepreneurs in rural communities. To do so it adopts a consistent conceptual and empirical microeconomic approach and employs econometric methodology. Community-based rural tourism (CBRT) is attracting increasing interest in both developed and developing countries, since tourism is considered an effective way to promote rural development in all parts of the globe. Further, because information and communication technologies are developing rapidly, new types of communities are now formed more easily than ever. As such, this book covers not only traditional, closed agrarian communities, but also emerging communities formed by local nonprofit organizations (NPOs) and national networks of farmers who provide educational tourism for consumers. These emerging communities are beyond the range of traditional agrarian communities and complement each other, which helps overcome obstacles to rural tourism for farm operators and urban residents. Those communities also nurture the rural entrepreneurship that eventually will create a sustainable urban-rural relationship. This study--the first of its kind--contributes to the advancement of research on rural tourism from a microeconomic perspective. It presents a conceptual framework for understanding rural tourism from a microeconomic perspective; empirically clarifies the specific issues and constraints for the development of CBRT; and also investigates how to overcome these issues Preface 6 Contents 8 About the Author 15 Introduction 16 1 Perspectives, Structure, and Conceptual Framework 17 1.1 Purpose of This Book and Perspective 17 1.2 Literature on Community-Based Tourism and Research in Entrepreneurship 21 1.3 Conceptual Framework of Rural Tourism and Community-Based Rural Tourism 26 1.3.1 Externality in Agriculture 27 1.3.2 Multifunctionality as a Positive Externality 28 1.3.3 Internalizing Multifunctionality Through Rural Tourism: Stepwise Innovation 30 1.3.4 Market for Rural Tourism and Its Characteristics 34 1.3.5 Emerging Rural Markets and Conceptual Considerations 36 1.3.6 Required Capacity Building of Farm and Local Resource Management 38 1.3.7 Basic Framework of Community-Based Rural Tourism 40 1.4 Structure of the Book 41 References 43 2 Features and Challenges of Rural Tourism in Japan 47 2.1 Introduction 47 2.2 Rural Tourism in Transition 48 2.3 How Large Is the Market for Rural Tourism? 50 2.4 Issues of Rural Tourism in Japan 51 2.4.1 Institutional Aspects 51 2.4.2 Issues of Service Management 54 2.4.3 Market-Oriented Policy Framework of Rural Tourism 58 2.5 Conclusion 60 References 60 Roles of Community-based Rural Tourism 62 3 Roles of Farm Pluriactivity on Multifunctional Agriculture in a Mountainous Rural Community 63 3.1 Introduction 63 3.2 Background of the Analysis and the Present Situation of the Study Area 65 3.3 Framework for the Analysis of Land Preservation and Signalling 66 3.3.1 Conceptual Framework 66 3.3.2 Analytical Framework 69 3.4 Estimations of Farmland Abandonment 71 3.4.1 Model 71 3.4.2 Data and Estimation Method 71 3.4.3 Results of the Estimation 73 3.5 Farm Activities and Farm Characteristics 75 3.5.1 Data and Method 75 3.5.2 Household Composition 76 3.5.3 Employment Situation: On-Farm Farming and Off-Farm Non-Farming Activities 76 3.5.4 Agricultural Production: On-Farm Farming Activity 79 3.5.5 Group Farming: Off-Farm Farming Activity 81 3.6 Discussion 83 3.7 Conclusion 84 References 85 4 Roles of Farm Women in Rural Tourism Enhancing Multifunctionality 86 4.1 Introduction 86 4.2 Study Area and Rationale for Case Study 87 4.3 Evolutionary Process of Farm Activity and Rural Tourism: A Case Study of Innovation in Farming 87 4.4 New Activity for the New Market 91 4.5 Innovation in On-Farm Activities: Comparison Between Farming Activity and Rural Tourism Activity 92 4.6 Discussion: Factors of Product Innovation 93 4.7 Conclusion 95 References 96 5 Impact of Rural Tourism Operated by Retiree Farmers on Multifunctionality 97 5.1 Introduction 97 5.2 Study Design 98 5.3 Working Hypotheses on the Relationship Between Rural Tourism Operated by Retiree Farmers and Multifunctionality of Agriculture 99 5.4 Statistical Examination of Trend of Newcomers into Farming in Japan 100 5.5 Case Study on Rural Tourism Activity by Retiree Couple 103 5.5.1 Motivation for Starting Rural Tourism 103 5.5.2 Accommodation Service 104 5.5.3 Farming Experience Service 104 5.5.4 Direct Selling 108 5.6 Discussion 109 5.6.1 Enhancement of Multifunctionality Through Rural Tourism 109 5.6.2 Roles of the Elderly in the Educational Function 111 5.7 Conclusion 113 References 114 6 Relationship Between Community Activities as a Rural Institution and Multifunctionality 116 6.1 Introduction 116 6.2 Data 118 6.3 Outline of Direct Payment Program and Multifunctionality 118 6.4 Conceptual Model 121 6.5 Analytical Model 124 6.6 Structural and Estimation Models 126 6.6.1 Model 1: Institutional Cost Structure 126 6.6.2 Model 2: Factors Determining Multifunctional Activities 127 6.7 Estimation Results 130 6.7.1 Model 1 130 6.7.2 Model 2 133 6.8 Discussion 140 6.9 Conclusion 141 References 142 Challenges of Community-Based Rural Tourism 143 7 Barrier to Change in Rural Tourism: Dependence Effect on Local Tourism Resources 144 7.1 Introduction 144 7.2 Conceptual Considerations 145 7.2.1 Basic Framework 145 7.2.2 Analytical Framework 147 7.3 Data 149 7.4 Attitudes on Future Development 150 7.4.1 Empirical Model 150 7.4.2 Explained Variables 151 7.5 Results 152 7.5.1 Cluster 1 153 7.5.2 Cluster 2 153 7.6 Follow-Up Evaluation from The Long-Term Perspective 154 7.7 Conclusion 155 References 156 8 Challenges of Community-Based Rural Tourism in a Super-Ageing Society 158 8.1 Introduction 158 8.2 Literature Review 159 8.3 Trends of Leisure Preferences in Japan 162 8.4 Study Case: History of Lodge Kusunoki Operated by the Local Community 166 8.4.1 Structure 167 8.4.2 Activities 169 8.4.3 Challenge 1: Earthquake and Tsunami in 2011 170 8.4.4 Challenge 2: Succession, Cohesive Decision-Making, and PR Through Social Media 172 8.5 Conclusion 174 References 175 9 Measuring Labour Productivity and Market Viability of Community-Based Rural Tourism 178 9.1 Introduction 178 9.2 Conceptual Consideration 179 9.2.1 Declining Process of Rural Resource Use and Emerging New Social Needs 179 9.2.2 Emerging New Market 181 9.3 Analytical Model 183 9.4 Data 185 9.5 Correlation Coefficients Between Rural Tourism and Utilization of Rural Resources 186 9.6 Estimation Model of Marginal Labour Productivity 190 9.7 Estimation Results 190 9.7.1 Evaluation of Factor Input Relationship 190 9.8 Estimated Labour Productivity 194 9.9 Discussion 196 9.10 Conclusion 198 References 199 Overcoming Challenges and Entrepreneurship 201 10 Evaluating Integrated On-Farm Tourism Activity After Rural Road Inauguration 202 10.1 Introduction 202 10.2 Framework: Pattern of Impact of Road Building 204 10.3 Conceptual Framework: Process of Integrating the Impact 205 10.4 Outline of the Study Area 208 10.5 Data 209 10.6 Evaluating Effects of Distance from Roads 210 10.7 Estimation Model 213 10.8 Results of Estimation 215 10.9 Conclusion 218 References 219 11 Factors on the Linkage Between Local Brand Farm Products and Tourism in an Agrarian Community 221 11.1 Introduction 221 11.2 Literature Review 222 11.3 Analytical Framework 225 11.4 Data and Statistical Tests 228 11.5 Model Estimation and Results 229 11.6 Conclusion 234 References 235 12 Linkage Between Operators’ Satisfaction and Potential of Local Resources for Rural Tourism 237 12.1 Introduction 237 12.2 Literature Review 238 12.3 Analytical Framework—Effect of the Potential for Local Resource Utilization: Stepwise Enhancement Hypothesis 240 12.4 Outline of Study Area 241 12.5 Survey Method and Data 242 12.6 Profiles of Respondents 242 12.7 Operators’ Satisfaction and Index of Potential for Utilization of Local Resource 243 12.8 Statistical Tests on Individual Satisfaction and Local Resource Potential 246 12.9 Regression Analysis of Factors that Determine the Potential for Local Resource Utilization 251 12.10 Results 253 12.11 Conclusion 254 References 255 13 Roles of Networking NPOs Connecting Local Stakeholders in Rural Tourism 258 13.1 Introduction 258 13.2 Literature Review 259 13.3 Conceptual Framework: An Approach by Institutional Economics 260 13.4 The Chiba Nature School as a Network-Integrating NPO: A Case Study 263 13.5 Conclusion 266 References 267 14 Community-Based Rural Tourism by Networking NPO 269 14.1 Introduction 269 14.2 Methodology 270 14.3 Conceptual Model 270 14.4 Case Study 272 14.4.1 Study Area: Background of Kurihara 272 14.4.2 Study Case: The Kurihara Tourism Network 272 14.4.3 Activity in Practice: Food-Heritage Experience Programs 274 14.4.4 Agrarian Heritage Experience Programs 274 14.5 Discussion 275 14.6 Conclusion 276 References 277 15 Stepwise Internalization Process of Multifunctionality by Farm Diversification 279 15.1 Introduction 279 15.2 Conceptual Considerations 280 15.2.1 Characteristics of the Educational Function 280 15.2.2 Relationship Between Diversification and the Educational Function 282 15.2.3 Relationship Between Diversification and Internalization 283 15.3 Data and Methods 285 15.4 Evaluation of Charging for Farming Experience Services 286 15.5 Conclusion 291 References 292 16 Roles of Social Learning Network in Educational Tourism in Dairy Farms 294 16.1 Introduction 294 16.2 Literature Review 295 16.3 Conceptual Framework: Stepwise Internalization Process of Educational Externality in EDF Service 296 16.4 Hypothesis: Significance of Network Organizations 298 16.5 Two Social Learning Organizations for Operation of an Educational Dairy Farm 300 16.6 Data and Methods 301 16.7 Results of Statistical Tests 301 16.8 Estimation of Viability Orientation Determinant Model 306 16.9 Conclusion 313 References 313 17 Concluding Remarks 316 Author Index 319 Subject Index 325 Front Matter ....Pages i-xvii Front Matter ....Pages 1-1 Perspectives, Structure, and Conceptual Framework (Yasuo Ohe)....Pages 3-32 Features and Challenges of Rural Tourism in Japan (Yasuo Ohe)....Pages 33-47 Front Matter ....Pages 49-49 Roles of Farm Pluriactivity on Multifunctional Agriculture in a Mountainous Rural Community (Yasuo Ohe)....Pages 51-73 Roles of Farm Women in Rural Tourism Enhancing Multifunctionality (Yasuo Ohe)....Pages 75-85 Impact of Rural Tourism Operated by Retiree Farmers on Multifunctionality (Yasuo Ohe)....Pages 87-105 Relationship Between Community Activities as a Rural Institution and Multifunctionality (Yasuo Ohe)....Pages 107-133 Front Matter ....Pages 135-135 Barrier to Change in Rural Tourism: Dependence Effect on Local Tourism Resources (Yasuo Ohe)....Pages 137-150 Challenges of Community-Based Rural Tourism in a Super-Ageing Society (Yasuo Ohe)....Pages 151-170 Measuring Labour Productivity and Market Viability of Community-Based Rural Tourism (Yasuo Ohe)....Pages 171-193 Front Matter ....Pages 195-195 Evaluating Integrated On-Farm Tourism Activity After Rural Road Inauguration (Yasuo Ohe)....Pages 197-215 Factors on the Linkage Between Local Brand Farm Products and Tourism in an Agrarian Community (Yasuo Ohe)....Pages 217-232 Linkage Between Operators’ Satisfaction and Potential of Local Resources for Rural Tourism (Yasuo Ohe)....Pages 233-253 Roles of Networking NPOs Connecting Local Stakeholders in Rural Tourism (Yasuo Ohe)....Pages 255-265 Community-Based Rural Tourism by Networking NPO (Yasuo Ohe)....Pages 267-276 Stepwise Internalization Process of Multifunctionality by Farm Diversification (Yasuo Ohe)....Pages 277-291 Roles of Social Learning Network in Educational Tourism in Dairy Farms (Yasuo Ohe)....Pages 293-314 Concluding Remarks (Yasuo Ohe)....Pages 315-317 Back Matter ....Pages 319-329