AGROTOURISM

Principles and Practices

Academic Year: 2009-10
Semester: Spring
Course Code: GRK209U
Istructor:

Student Name:
Word Count: 3341

1. Gigliotto Agriturismo, <http://www.gigliotto.com/Gigliotto

%20ENG/gigliottoENG.htm>

2. The enterprise (15 points)

Geographically, the
agritouristic enterprise
“Gigliotto” is situated in
the prosperous Sicilian
countryside of Southern
Italy, outspread on 300
hectares of fertile land,
cultivated by preserved
peasant tradition.
Initially, in 1296 the fief
belonged to Guglielmo
Padula, whereas
afterwards during the Aragon period, the Gravina Family became the new possessor
and split it in many parts in order to sell them. Furthermore, in 1794 Michel Gravina
sold Gigliotto to Silvio Bonnano and since then Gigliotto has always been property of
the Bonanno Family. Lastly, in 1990, the fief was bought by the Savoca Family.
Nowadays, as modern farmhouse refurbished from an old 14th century monastery,
the farm has idyllic surrounding; offering short distance availability to various touristic
places such as: Piazza Armerina (distinctive with its historic centre), and the well-
known Villa Imperiale del Casale (containing the world’s widespread compilation of
Roman mosaics). Consequently, other nearest places for trips are: Caltagirone,
Taormina, Agrigento, Siracusa, Noto and Ragusa Ibla. In addition, the farm owner’s
priority was to improve the contiguous region, thus invested in planting Nero d’Avola

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grapes with respect to scrupulous plan of minimizing the environmental impact.
Therefore, all the products offered are coming from biological and regional
cultivations accompanied by all flavored olive oil, and unsurpassed quality of organic
wine from the grapes of the Nero d’Avola variety. Nevertheless, the resources, which
the destination possesses, are extremely important towards generating agritourism
popularity and attractiveness.

3. Internal and external environment of the enterprise (10 points)

The internal environment of Gigliotto could be articulated in terms of

management practices including the agritourism products/services the farm offers,
as well as, customer relationships. Therefore, regarding the services the farm is
offering: 14 spaciously rooms, large dining room, traditional Sicilian cuisine,
swimming pool, free parking lot, conference room, and banquet facilities. Regarding
the accommodation, all rooms are fully equipped with traditional Sicilian furniture
giving the sense of an ancient atmosphere. The restaurant accommodates 250
guests, proffering traditional Sicilian kitchen with large portfolio of products coming
from biological and regional cultivations that are prepared by two highly professional
kitchen chefs and served by hospitable waiters (a waiter for every 15-20 people).

In addition, customer services in Gigliotto could be described as having moderate

communication with the hosts, high quality of food and various activities throughout
the vacation. Bur, however, slight improvement in the customer approach philosophy
could be considered as vital step towards future growth of the company.
The external environment comprises all the activities occurring in the general
environment outside of the company. These activities could directly or indirectly
affect the company’s operation, whereas the company itself does not have any
control over them. This environment is composed of numerous factors, commonly
depicted by the PESTEL (political, economic, social, technological, environmental
and legal) analysis (Kotler & Armstrong 2006, p.68).

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Political

Politically, the country maintains stable intercontinental relationships with all the
EU countries with reasonable level of democracy, ethnical and religious freedom in
the country. Therefore, there is a susceptible political regime with a multi-party
system, which can not equally ensure the certainty of law and the respect of
contractual rights in every region of the country. However lawsuits tend to be lasting
and expensive, thus could represent a risk in case of a contractual breach (Lucifora
& Moriconi 2009).
In southern Italy (including Sicily) the politics is based on factionalism and
corruption. In this region the Mafia has large impact on residents in terms of
socioeconomic level, holding back the prosperity of numerous businesses, and
bribing the political system. The Mafia is capable to provide safety measures that
other forms of government could not, conversely, in return they have a complete
supremacy over the economic development. Taking into consideration the political
instability of the southern region, Gigliotto enterprise is also affected by these forces,
which as a great threat decelerate the further growth of the company, holding it back
from the entrepreneurial capitalist economy. (Micali 2009).

Economic

The Italian economy is based on services and industry. The most influential
economic factors which might affect the tourism effectiveness in one country are:
discretionary household income, GDP, unemployment rate, and inflation rate.
According to (Global Property Guide 2010) the GDP (Gross Domestic product) per
capita in Italy is $38.966, with intervals alike to UK and Spain, but comparable lower
from countries such as: Luxembourg, Norway and Switzerland, which is however, an
adequate amount of money to ensure the population to allocate some of its budget
for acquirement of deluxe products. In addition, the income in Italy is unequally
distributed, whereas Sicily characterize with high unemployment rates, considered to
be the poorest region of all. The employment rate at this area is divided into three
clusters: agricultural (12%), industry (20%) and tourism/commerce (68%) (Lane
2009). Therefore, merging the agricultural and tourism sector by developing
agritourism sites seems the best opportunity for enhancing the region’s economy,

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and creates a broad opportunity for Gugliotto’s company to grow progressively in the
years to come.

Social

Concerning the social life, the southern part of Italy (including Sicily)
characterize with more traditional and family oriented lifestyle where people are
getting married younger and then continue to live with their parents until the time
when they could afford a place on their own. Moreover, this type of particularism
could positively affect Gigliotto in terms of collectivism and hospitality in comparison
to universalism/individualism in the northern part of Italy. For example, southern
Italians are regarded as more hospitable because are showing more considerable
interest in worrying about other’s negative feelings in comparison to northern Italians
where they account greater worry for self achievement rather than developing
relationships with others (e.g. tourists) (Micali 2009).

Technological

Nowadays, almost all agrotourism enterprises are actively involved in

marketing their products, whereas most of them are using the internet technology to
reach their customers. The Gigliotto company could be considered as avant-garde
company because shows reliance on modern technology for communication by
using a Web page to promote its products/services. But, however, more
sophisticated technology is needed in the other sectors (e.g. production), if the
company wants to stay competitive in the area. For example, if Gigliotto wants to
preserve the ecosystem and be officially regarded as environmentally friendly, has to
implement renewable sources of energy such as solar panels and introduce
recycling practices by using the up-to-date technology.

Environmental

Concerning the Gigliotto’s impact toward the environment, the farm has already
disturbed the ecosystem of the area because its entire infrastructure is straddled
only in one area. Thus, to preserve the natural beauty the biodiversity of the area
must also be conserved so that the plants and animals that live there can continue to
do so. So far, the activities that are offered by the farm have diminutive damage to
the ecosystem, as long as most of these activities do not have to be changed in near

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future. Moreover, as long as the number of tourists is kept low, the threat of polluting
the environment through waste materials such as trash and sewage would remain
minimal. The company has great potential to expand on the biodiversity ecosystem
services by growing medicinal and herbal gardens (e.g. tea) for the tourist’s
enjoyment. However, the company should stimulate the preservation of the
environment by putting more pressure on the fragile eco system and the landscape,
thus will reduce the level of residues and scarcity of resources.

Legal

Agrotourism firm may face a broad range of legal issues, which all of them depend
mostly on the activities offered and the regulations within the state or locality where
the company operates. For example, some of the regulations that farmers should
implement before offering any food/beverages to customers is to ensure to apply the
local food standards as well as to obtain liquor licenses if alcohol is served within the
premises. Moreover, an insurance policy should be also provided if any transport
means are provided to tourists. Some additional legal issues could also be: zoning
restrictions, building codes, compliance with the Europeans with Disabilities Act,
taxation and business permits. However, Gigliotto enterprise fulfills almost all of
these regulations and one of them is that the company in its accommodation facilities
offers special room for people with mental/physical disabilities (Agritourism - An
Overview 2009).

4. List ten points that support the reasons for choosing this enterprise (10 points)

• Situated in the heart of Sicily, (a wonderful artistic city distinguished by the old
buildings in baroque style).
• Benedictine monastery constructed in the 13th century and then used as a
farmhouse for centuries, whereas present proprietors have refurbished it into
a flourishing Agriturismo cite.
• Farm-based events such as weddings, festivals.
• Farm-based attractions that might feature farm and regional familiarization.
• Farm-based lodging such as bed and breakfasts on a farm
• Farm-based recreational activities such as hunting, fishing, and camping

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 • Sicilian cuisine prepared with organic products traditionally harvested by
hand.
• Mediterranean place due to its peculiar geographical position between the
Erei Mountains, and the presence of woods.
• Educating consumers through instructive programs such as demonstrations
and guided tours.
• Maintaining work at home rather than working off the farm.

5. Define agrotourism, rural tourism and sustainable development. Show how

agrotourism can provide opportunities for sustainable\ development. Explain
the reasons why the company you chose is an agrotourism enterprise and
discuss its role in providing (or not) opportunities for sustainable development.
(15 points)

The Agrotourism concept could be defined as an activity, or business venture that

combines primary elements and characteristics of agriculture and tourism, and
provides an experience for visitors that stimulates economic activity and impacts
both farm and community income. Nowadays, agrotourism plays a crucial role in
sustaining the rural way of life, allowing farmers to intensify their activities while
contributing to the conservation of the area’s historical and cultural heritage.
Therefore, the numerous advantages that agrotourism proffer is to provide seasonal
employment opportunities within a society and new/supplementary sources of
revenue for farmers. Thus, agrotourism represents a modern approach for many
farm families to retain their farming traditions (Wolfe & Bullen).
(Cooper et al., 2005, p. 264) used the WTO (1980) definition as the best way to
describe the Sustainable Tourism Concept: “Sustainable tourism development meets
the needs of the present tourists and host regions while protecting and enhancing
opportunity for the future. It is envisaged as leading to management of all resources
in such way that economic, social and aesthetic needs can be fulfilled while
maintaining cultural integrity, essential ecological processes and biological diversity
and life support systems”. The three main elements: economical, social-cultural and
ecological, of the process of sustainability are used within this theory, implying that
the sustainable tourism concept is made up by correlation between the community-

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based economics, conservation with equity and integration of the environment with
the economy.
Rural tourism is conceived as any type of tourism that displays the rural life,
historical and cultural heritage at rural places, thereby contributing socially and
economically to the wellbeing of the rural inhabitants, as well as, facilitating contacts
between the tourists and the locals for enhancing tourism practices. In other words,
rural tourism is basically an activity (fishing, hunting, eco – tours, hiking), which takes
place in the countryside (less than 2000 habitants) (Wolfe & Bullen). According to
this definition, rural areas offer special enchantment to tourists because of the
inscrutability associated with the rural environment by providing fabulous glimpse of
the village atmosphere with local cuisine, whereas the housing for tourists is
constructed in traditional village architecture. Consequently, rural tourism may or
may not be designed to generate a supplemental income for the farmer, but could be
regarded as a business venture of travel and tourism professionals (Pakurar & Olah
2008).
The prime reasons why Gigliotto enterprise was chosen is the fact that
represents a real agrotourism company with corrective actions toward sustainable
tourism development. According to (Utama 2007) the company comprises several
principles of the agrotoursim concept that are regarded as essential for sustainable
development. Therefore, Gigliotto commences and influences local community as
being regulator and preserver of the tourism, where the tourism activities are
regulated by the governmental bodies of the host district. Furthermore, the farm
creates employment opportunities and enhances farmer’s awareness on tourism
sustainable development through continuous education and training programs. Thus,
results in eventually sustaining cultural/natural conservation and increases tourist
arrivals and continuity of the business in the village.

6. Show what the experience that agrotourism gives to tourists are and what
their main interests are. Indicate which of these your enterprise offers and
what should be done in order to attract more tourists. Indicate, according to
your opinion, whether your enterptise offers a full and differentiated
agrotourism product. (15 points)

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 Nowadays, agrotourism is developing incredibly fast because tourists aspire
to escape from their everyday worries in order to visit and experience different
natural places. Therefore, users of agrotourism services want to avoid mass tourism
and their main purpose is to getaway from the stress and working places. In most
cases, tourists seek destinations that provide value for their holiday money. They are
interested in maximum contact with nature and in warm relationships with people.
Additionally, they seek for authentic local culture that will provide them natural
products, activities and quality accommodation ensuring peace and rest.
Consequently, these visits are mainly beneficial for the locals to gain additional
income by providing guided tours in their regional most attractive surroundings (Beus
2008).
In Gigliotto’s case, all the resources which the farmhouse possesses are
important towards generating agrotourism popularity and attractiveness. The
activities which could encourage
people to come to Gigliotto are
numerous such as: horseback
riding including lessons,
excursions and guided tours,
trekking, daily cleaning and linen
changes, camping, agricultural
activities (wine tasting, olive oil
picking, mushrooms and tea collection), fishing on the small lake near the farm,
hunting and archery. These set of activities have minor impact toward the natural
environment that make the company an authentic touristic place to be visited.
Moreover, for the company to attract more customers, it could be suggested to
create a more scrupulous plan of future activities with more appropriative ways of
managing their impact to the environment. Concerning the existing
products/services, the company characterize with full and differentiated
products/services such as: personal contact with guests and traditional local
agricultural produce (e.g. local cuisine).

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 7. Define and explain the congruence and dissonance between agrotourism and
other alternative forms of tourism. Indicate how your enterprise is using (or
not) other forms of tourism in order to increase the services provides. Present
what you think are the most suitable key steps your enterprise should take on
order to be stronger in the tourism market. (15 points).

The difference between agritourism and agrotourism is that the term agritourism
defines the totality of tourist activities taking place within the framework of the farm,
by individuals primarily occupied in agriculture, with a view to creating supplementary
income for the family members. While the term ‘agrotourism’ refers to tourist
activities developed by permanent residents of rural areas for whom farming is not
the principal occupation and who create small scale agrotourist units offering both
services and products, of a family-run or co-operative form (Grigoryan 2010).
In addition, alternative tourism is used to portray the opposite of mass tourism,
distinguished by having negligible impact toward the environment, by being small
scale and locally based and preferably stimulating the local economy while
preserving cultural identity. Moreover, many types of alternative tourism exist such
as: sports tourism, religious tourism, spa tourism, wildlife and adventure tourism.
Therefore, it is acknowledged that agritourism as an umbrella definition comprises all
the alternative types of tourism, thus Gigliotto, besides the regular agritourism
activities, indirectly provides other types of tourism such as: ecotourism, natural and
cultural tourism (Williams 2004, pp. 171-185)

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 Ecotourism is conscientious form of tourism that conserves natural resources and
sustains the welfare of the local population/community. In this case, tourists would
expect to be guided by well-informed person, to visit places of natural exquisiteness
such as: caves, waterfalls, wildlife, forests etc. However, if not properly managed
due to unsustainable and inequitable resource use, this sort of tourism could be a
major source for degradation of local ecological, economic and social systems
(Williams 2004, pp. 206-224).
Natural tourism, as an interrelated part of ecotourism, is primarily described in
terms of recreation with diminutive ecological impact that includes broad spectrum of
activities such as: water rafting, skiing,
fishing, hunting etc.). This type of
tourism has positive attributes due to
the pollution free environment and
heaps of greenery (Haldar 2007,
p.115). Moreover, the region on which
Gigliotto is located is not scarce in
natural biodiversity, since it involves
presence of local animals and plants,
especially found in that area.
Additionally, the natural attributes of the
lake area near the farm are considered
as valuable asset for the farm because
it gives the opportunity for tourist to be
engaged in fishing activities, bird
watching, and picking of herbs/teas.
Cultural tourism is associated with the cultural, historical and archeological
characteristics of local people that could involve forts from medieval period,
archeological excavations, festivals, etc (Haldar 2007, p.116). The farm itself offers
cultural tourism because of its ancient architectural surrounding, based on a
historical background from the medieval period. The farm is near to many places of
historical heritage such as the well-known Villa Imperiale del Casale that contains
the world’s widespread compilation of Roman mosaics and Piazza Armerina,
distinctive with its historic centre. Some fairs/festivals are also arranged within the
farm, which makes the farm sociable and admirable place to be visited.

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 Nevertheless, in order to be stronger and attract more customers, the enterprise
should keep track and be up to date with the competitors’ activities and technological
developments.

8. Identify the company’s marketing tools and evaluate the company’s strategy.
Explain how agrotourism is interrelated with small business economics,
service marketing, sustainable agriculture, and what legal issues an
agrotourism firm may face. Make recommendations according to the strengths
and weaknesses of the company. (15 points)

To market the agritourism business, Gigliotto should start offering extensive

quality products/services and marketing them more efficiently, thus guests would be
more interested to come and visit the agritouristic site. So, with more attentive
management strategy, these guests could become loyal/repetitive customers that
through word of mouth could also encourage their friends to come. Consequently,
this could enhance the forthcoming farm revenue projections. For example, through
the festival/fair activities that the company provides, it creates opportunities to
promote its products/services to travelers, as well as to enhance awareness of
agricultural issues and stress the importance of farming to society.
In addition, an extensive range of governmental laws and regulations compose
the system in which an agrtourism enterprise should operate, thus all agritourism
companies must act in compliance with these regulations. Since, Gigliotto is
considered as relatively novice firm in the farm county, the legal obligations for such
activities are likely to differ regionally. Therefore, in this region, the policies that
influence the agritourism development are interrelated to broader governmental acts
and regulations. Being familiar with these rules and knowing how they relate to these
particular agritourism cite prior to development activities could evade unnecessary
time and money investments (Cultivating Agritourism p.21)

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 In addition, SWOT analysis was used to easily determine the strengths and
weaknesses of the company, as well as the presence of opportunities and threats as
external factors affecting the company (see Appendix 1). Moreover, SWOT analysis
is in fact a technique by which could be identified the strengths, and weaknesses, as
well as observed the opportunities and threats of an organization. This technique is
frequently used to measure the company’s efficiency and effectiveness. (SWOT
Analysis 2008).

Recommendations

The encouragement of tourists to revisit the place is provisional and mainly

depends on infrastructure development. For example, the Gigliotto farmhouse should
provide up to date technology to foster communication channels between locals and
tourists, and to take the advantage of existing commercialization processes of
certain tourist destinations (e.g. Piazza Armerina). In this way the company must
promote itself, as well as the vicinity of the area in order to be recognized and
exploited outside to prospective agro tourists. For instance, in this particular case
study, there is no rail in the area, which confines the potential of those who do not
have cars, but are willing to visit the place. Moreover, considering the average level
of languages spoken (preferably English), it is unavoidable that inhabitants must
constantly improve their English terminology and gain knowledge of other languages
as well, if they want to stay competitive, and attract or keep customers. However,
more intensive promotion of the place on the Internet or in other media sources is
considered to be crucial precondition that might result with greater number of foreign
tourists in near future.

Conclusion

To summarize, in the light of the above considerations, the case study

represents a preliminary examination of the issues and challenges associated to
Gigliotto’s agritourism development. The enterprise has clearly articulated its
products and services in association to agritourism policies/practices. Therefore,
since agritourism is considered as an apparent alternative of supplementary income
for many farmers, the development of the region through rural tourism is
proportionally linked to the recorded revenues of Gigliotto. In this way the socio
economic status in the area is improved from the offerings of new jobs by the

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company. Moreover, by using the wonderful circumambient of the location, Gigliotto
as well-structured enterprise is able to offer genuine agritourism experiences with
relatively moderate range of activities. But, however, because of the state of the agri-
tourism industry, Gigliotto appear reluctant to embrace and to endorse agritourism in
its marketing campaigns, being unable to successfully promote itself to potential
customers. Nevertheless, further research is needed in order to convey insights that
will improve the future development of the company.

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Bibliography:

Agritourism - An Overview 2009, The National Agricultural Law Center, viewed 20

May 2010. < http://www.nationalaglawcenter.org/assets/overviews/agritourism.html>

Agriturismo Gigliotto 2010, viewed 5 May 2010, <http://www.gigliotto.com/Gigliotto

%20ENG/gigliottoENG.htm>

Beus, EC 2008, Agritourism: Cultivating Tourists on the Farm, Washington State

University Extension, viewed 24 May 2010.
<http://cru.cahe.wsu.edu/CEPublications/eb2020/eb2020.pdf>

Cooper, C., Fletcher, J., Fyall, A., Gilbert, D and Wanhill, S. (2005), Tourism:
Principles and Practice, 3rd edn, Essex: Pearson Education Limited.

Cultivating Agritourism: A Guide for Establishing Agritourism Resource Centres in

Carbbean, IICA, viewed 22 May 2010.
<http://www.garveylibertyhall.com/IICA_old/Trinidad-
Tobago/Publication/ResourceCentreGuide.pdf>

Grigoryan, A 2010, Agrotourism: Principles and Practices, Notes from class, Perrotis
College, Thessaloniki, Greece.

Haldar, Piali 2007, Rural Tourism – Challenges and Opportunities, International

Marketing Conference on Marketing & Society, viewed 18 May 2010.
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Italy: Country Statistics 2010, Global Property Guide, viewed 25 May 2010.
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Kotler, P & Armstrong, G 2006, Principles of Marketing, 11th edn, Pearson Education,
Inc., Upper Saddle River, New Jersey.

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Lane, J 2009, Palermo Sicily & its Surroundings, Hunter Publishing Inc, Mayfield
Ave, Edison, viewed 21 May 2010, <http://books.google.com/books?
id=PwqpFRPP36AC&pg=PT17&lpg=PT17&dq=sicily+agricultural+
%2812%25%29,+industry+%2820%25%29+and+tourism/commerce+
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%2Fcommerce%20%2868%25%29.&f=false>

Lucifora, C & Moriconi, S 2009, Political Instability, Labour Market Institutions and
Unemployment, Universita Cattolica del Sacro Cuore, Universita del Piemonte
Orientale, Milano, Italy, viewed 25 May 2010. <http://www.idep-
fr.org/IMG/pdf/Lucifora_-_Moriconi.pdf>

Micali, J Sara 2009, Italy: The Case for Division, A Comparative Thesis between
Northern and Southern Italy, Salve Regina University, viewed 24 May 2010.
<http://escholar.salve.edu/cgi/viewcontent.cgi?article=1050&context=pell_theses>

Pakurar, M & Olah J 2008, Definition of Rural Tourism and its Characteristics in the
northern Greta Plain Region, University of Debrecen, Center for Agricultural
Sciences and Engineering, viewed 18 May 2010.
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f>

SWOT Analysis: A tool for making better business decisions 2008, United States
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http://farm-risk-plans.usda.gov/pdf/swot_brochure_web.pdf>

Utama, RBGI 2007, Agrotourism as an alternative form of tourism in Bali, viewed 23

May 2010.
<http://depot.gdnet.org/newkb/submissions/1195413453_Tourism_Paper_for__GLO
BAL_DEVELOPMENT_NETWORK_NEWSLETTER.pdf>

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Williams, S 2004, Tourism: Critical Concepts in the Social Sciences, Routledge, New
Fetter Lane, London, viewed 17 May 2010. <http://books.google.com/books?
id=bbOuDBJYCBQC&pg=PA171&lpg=PA171&dq=alternative+tourism&source=bl&ot
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%20Agritourism%20Enterprise.pdf>

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Appendixes:
Appendix 1. SWOT Analysis

STRENGTHS WEAKNESSES

 The only agritourism enterprise  Inadequate promotion of local

in the locale having extensive agro-tourist potential (e.g.
historic background inconspicuous online marketing)

 Maintains a prominent brand  Not presence of renewable

name in the area sources of energy or recycling.

 In propinquity with famous  Limited amount of activities

touristic cites and major cities offered

 Limited possibility of using

 Excellent Sicilian cuisine made modern means of payment:
of organic products credit cards, traveler’s checks

 Conditions conducive to
engaging in agro-tourism  The absent of transport by rail

 Mountainous area with attractive  Poor proffesional training of

landscape personall providing services in
the agrotouristic place

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 OPPORTUNITIES
 Feasible opportunities for
subventions from
European/World organization’s
funds
 Extending the portfolio of
activities offered
 Implementing/developing new
renewable sources of energy
and recycling practices
 Promoting the area image and
the possibilities for attracting
aboriginals and foreign
investors.
 Valorization of the tourist area
 Fructification of cultural
exchange to understand better
customer’s expectation
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THREATS
 Economic downturns could
result in tourist decline
 Possibility for the company to
transform itself into a mass
tourism organization
 Probability of rapid growth of
new/existing competitors in the
forthcoming years
 The continuous deterioration of
the environment and the
existing deficiency in restoring
ecological balance.
 Inconsistent policy on tourism
and rural tourism at central level
 Misunderstanding of tourists
expectations
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