Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Critical Success Factors of Agrotourism Real Estate Investment

Norhishammudin Baharudin, Mohd Nadzri Jaafar, Azizah Ismail

http://dx.doi.org/10.6007/IJARBSS/v14-i3/20947

Open access

Agtourism, or the practice of attracting tourists to visit and experience agricultural and rural areas, has gained popularity in recent years as a way for farmers and rural communities to diversify their income streams and attract new visitors. However, like any business venture, success in agritourism real estate investment is not guaranteed and depends on various factors. Therefore, the question arises what are the critical success factors that impact real estate investment in agrotourism? Therefore, this study was conducted to determine the critical success factors of real estate investment in Malaysia. To achieve this objective, previous studies were used to identify the factors listed and critical success factors (CFS) were used to analyze the data. The findings of the study found that one of the successes of agrotourism is the location of real estate, the quality of natural resources and local culture, the demand from tourists for farm-based experiences, the types of activities offered, the management and marketing of real estate, the stability of the local economy, the development of infrastructure and the availability of financing for development. In conclusion, when there is a growing interest in agrotourism because of its potential in providing economic and social benefits for rural communities.

Baipai, R., & Chikuta, O. (2022). Critical Success Factors for Sustainable Agritourism Development in Zimbabwe?: A Multi-Stakeholder Perspective. 11(April), 617–631.
Barbieri, C. (2013). Assessing the sustainability of agritourism in the US: A comparison between agritourism and other farm entrepreneurial ventures. Journal of Sustainable Tourism, 21(2), 252–270. https://doi.org/10.1080/09669582.2012.685174
Barbieri, C., Sotomayor, S., & Aguilar, F. X. (2019). Perceived Benefits of Agricultural Lands Offering Agritourism. Tourism Planning and Development, 16(1), 43–60. https://doi.org/10.1080/21568316.2017.1398780
Brandano, M. G., Osti, L., & Pulina, M. (2018). An integrated demand and supply conceptual framework: Investigating agritourism services. International Journal of Tourism Research, 20(6), 713–725. https://doi.org/10.1002/jtr.2218
Broccardo, L., Culasso, F., & Truant, E. (2017). Unlocking value creation using an agritourism business model. Sustainability (Switzerland), 9(9). https://doi.org/10.3390/su9091618
Caralli, R. A. (2004). The Critical Success Factor Method?: Establishing a Foundation for Enterprise Security Management. Carnegie-Mellon Univ Pittsburgh Pa Software Engineering Institute. July, 1–86.
Chase, L. (2019). Agritourism and Quality-of-Life for Farmers. 337–352. https://doi.org/10.1007/978-3-319-91692-7_17
Chatzigeorgiou, C. (2020). Adoption of social media as distribution channels in tourism marketing: A qualitative analysis of consumers’ experiences. Journal of Tourism, Heritage & Services Marketing, 6(1), 25–32. https://doi.org/10.5281/zenodo.3603355
Chen, G., Huang, S. (Sam), & Bao, J. (2016). The multiple logics of tourism development in China. Journal of Sustainable Tourism, 24(12), 1655–1673. https://doi.org/10.1080/09669582.2016.1178754
Chetan, S., Dawn, G., Shipra, S., & Stephen, P. (2020). Exploring a market for agritourism in Fiji: tourists’ perspective. Tourism Recreation Research, 45(2), 204–217. https://doi.org/10.1080/02508281.2019.1685180
Chiang, L. L. (2014). An evaluation of the levels of entrepreneurship and competitive advantages in small midwestern agritourism businesses. Dissertation Abstracts International Section A: Humanities and Social Sciences, 74(10-A(E)). http://search.ebscohost.com/login.aspx?direct=true&db=psyh&AN=2014-99070-578&lang=de&site=ehost-live
Ciolac, R., Adamov, T., Iancu, T., Popescu, G., Lile, R., Rujescu, C., & Marin, D. (2019). Agritourism-A sustainable development factor for improving the “health” of rural settlements. Case study Apuseni Mountains area. Sustainability (Switzerland). https://doi.org/10.3390/su11051467
Cucari, N., Wankowicz, E., & Esposito De Falco, S. (2019). Rural tourism and Albergo Diffuso: A case study for sustainable land-use planning. Land Use Policy, 82(November 2018), 105–119. https://doi.org/10.1016/j.landusepol.2018.11.050
Dolnicar, S. (2019). A review of research into paid online peer-to-peer accommodation: Launching the Annals of Tourism Research curated collection on peer-to-peer accommodation. Annals of Tourism Research, 75(September 2018), 248–264. https://doi.org/10.1016/j.annals.2019.02.003
Engelbrecht, W. H., Kruger, M., & Saayman, M. (2014). An Analysis of Critical Success Factors in Managing the Tourist Experience at Kruger National Park. Tourism Review International, 17(4), 237–251. https://doi.org/10.3727/154427214x13910101597120
Fahmi, Z., Hamzah, A., Muhammad, M., Yassin, S. M., Samah, B. A., D’Silva, J. L., & Shaffril, H. A. M. (2013). Involvement in agro-tourism activities among communities in Desa Wawasan Nelayan villages on the east coast of Malaysia. Asian Social Science, 9(2), 203–207. https://doi.org/10.5539/ass.v9n2p203
Fatmawati, I., Bestari, S. A., & Rostiani, R. (2021). Key Success Factors’ Identification of Farm Tourism: A Case from Indonesia. E3S Web of Conferences, 232, 1–26. https://doi.org/10.1051/e3sconf/202123202020
Gao, J., Barbieri, C., & Valdivia, C. (2014). A socio-demographic examination of the perceived benefits of agroforestry. Agroforestry Systems, 88(2), 301–309.
https://doi.org/10.1007/s10457-014-9683-8
García, J. L., Alvarado, A., Blanco, J., Jiménez, E., Maldonado, A. A., & Cortés, G. (2014). Multi-attribute evaluation and selection of sites for agricultural product warehouses based on an analytic hierarchy process. Computers and Electronics in Agriculture, 100, 60–69. https://doi.org/10.1016/j.compag.2013.10.009
Hrymak, O. Y., Vovk, M. V., & Kindrat, O. V. (2019). Agrotourism as one of the ways to develop entrepreneurship in rural areas. Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies, 21(93), 31–34. https://doi.org/10.32718/nvlvet-e9307
Joshi, S., Sharma, M., & Singh, R. K. (2020). Performance Evaluation of Agro-tourism Clusters using AHP–TOPSIS. Journal of Operations and Strategic Planning, 3(1), 7–30. https://doi.org/10.1177/2516600x20928646
Kalsom, Z., Azman, I., Balu, N., & Kamalrudin, M. S. (2020). Maximising Smallholders ’ Income through. Oil Palm Industry Economic Journal, 20(March), 28–35.
Karampela, S., Papapanos, G., & Kizos, T. (2019). Perceptions of agritourism and cooperation: Comparisons between an Island and a mountain region in Greece. Sustainability (Switzerland), 11(3). https://doi.org/10.3390/su11030680
Kilic, T., & Baskaya, Z. (2018). Agro-Tourism Potential in Bilecik Province. Marmara Geographical Review, 38, 234–246.
Lamie, R., Chase, L., Chiodo, E., Dickes, L., Flanigan, S., Schmidt, C., & Streifeneder, T. (2021). Agritourism around the globe: Definitions, authenticity, and potential controversy. Journal of Agriculture, Food Systems, and Community Development, 10(2), 1–5. https://doi.org/10.5304/jafscd.2021.102.002
Lane, T. C. (2018). The Promising Practice of Agritourism for Small Farms. ProQuest Dissertations and Theses, August, 112.
https://search.proquest.com/docview/2130603287?accountid=38738
Leh, O. L. H., Noor, M. H. C., Marzukhi, M. A., & Musthafa, M. S. N. A. (2017). Social impact of agro-tourism on local Urban residents. Case study: Cameron Highlands, Malaysia. Planning Malaysia, 15(6), 51–66.
https://doi.org/10.21837/pmjournal.v16.i6.267
Liang, A. R. Da, Hsiao, T. Y., Chen, D. J., & Lin, J. H. (2020). Agritourism: experience design, activities, and revisit intention. Tourism Review. https://doi.org/10.1108/TR-10-2019-0438
MAFI, M. (2020). Dasar agromakanan negara (2011 – 2020).
Maneenetr, T., & Tran, T. H. (2014). Improving the potential of agricultural areas for development of agrotourism: A case study of ban mor village, Sam sung district, Khon kaen province. Mediterranean Journal of Social Sciences, 5(23), 533–539. https://doi.org/10.5901/mjss.2014.v5n23p533
Marais, M., Du Plessis, E., & Saayman, M. (2017). Critical success factors of a business tourism destination: Supply side analysis. Acta Commercii, 17(1), 1–12. https://doi.org/10.4102/ac.v17i1.423
Mardiany, Kusuma, Z., Rayes, M. L., & Hakim, L. (2021). Indigenous Knowledge-based Agrotourism in the Dayak Kenyah Community in Pampang Village, Samarida, East Kalimantan. Journal of Marine and Island Cultures, 9(1), 117–129. https://doi.org/10.21463/jmic.2020.09.1.07
Martin, S., Rieple, A., Chang, J., Boniface, B., & Ahmed, A. (2015). Small farmers and sustainability: Institutional barriers to investment and innovation in the Malaysian palm oil industry in Sabah. Journal of Rural Studies, 40, 46–58.
https://doi.org/10.1016/j.jrurstud.2015.06.002
Mazlan, N., Juraimi, A. S., Application, M., & Growth, I. (2016). Development and challenges of agritourism in Malaysia. June 2014.
Mohamad, N., Chandran, P. S., Khairunisa Marasol, N., & Izuddin Syed Ismail, S. (2021). Exploring Tourists’ Intention to Visit a Heritage Destination: Bukit Melawati, Selangor. Journal of Management and Science, 19(2), 31–42.
Mpiti, K., & de la Harpe, A. (2016). Factors affecting agritourism growth in rural communities of Lesotho. African Journal of Hospitality, Tourism and Leisure, 4(2), 1–11. https://doi.org/10.4102/aosis.2016.icbmd10.12
Pandremmenou, H., Sirakoulis, K., & Blanas, N. (2013). Success Factors in the Management of Investment Projects: A Case Study in the Region of Thessaly. Procedia - Social and Behavioral Sciences, 74(May 1999), 438–447.
https://doi.org/10.1016/j.sbspro.2013.03.032
Pechlaner, H., Thees, H., Manske-Wang, W., & Scuttari, A. (2019). Local service industry and tourism development through the global trade and infrastructure project of the New Silk Road–the example of Georgia. Service Industries Journal, 0(0), 1–27. https://doi.org/10.1080/02642069.2019.1623204
Pelegrín Entenza, N., Vázquez Pérez, A., & Pelegrín Naranjo, A. (2022). Rural Agrotourism Development Strategies in Less Favored Areas: The Case of Hacienda Guachinango de Trinidad. Agriculture (Switzerland), 12(7), 1–26.
https://doi.org/10.3390/agriculture12071047
Petroman, I., Varga, M., Constantin, E. C., Petroman, C., Momir, B., Turc, B., & Merce, I. (2016). Agritourism: An Educational Tool for the Students with Agro-food Profile. Procedia Economics and Finance, 39(November 2015), 83–87. https://doi.org/10.1016/s2212-5671(16)30244-1
Postevoy, K., Fernandes, P. O., & Kosenchuk, O. V. (2018). Improving the competitiveness of rural areas in the aspect of rural tourism development. Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional Expansion to Global Growth, 7352–7365.
Putri, W. K., Naim, A., & Setiawan, H. (2015). Fruit Plants Species along Corridor in Kopendukuh Village as a Resource for Rural Tourism Development. Journal of Indonesian Tourism and Development Studies, 3(1), 31–36. https://doi.org/10.21776/ub.jitode.2015.003.01.05
Rashid, M. F. A., Muhamad, A. K., Rashid, K., Ahmad, A. L., & Azman, M. A. A. (2021). Formulation of a malaysia modern rural development framework: Synergising rural for change. Planning Malaysia, 19(16), 14–26. https://doi.org/10.21837/PM.V19I16.948
Rehman, A., & Hussain, I. (2016). Modern Agricultural Technology Adoption its Importance, Role and Usage for the Improvement of Agriculture province, Pakistan View project Eco-energy-environmental nexus in China View project. American-Eurasian J. Agric. & Environ. Sci, 16(2), 284–288. https://doi.org/10.5829/idosi.aejaes.2016.16.2.12840
Rosardi, R. G., Prajanti, S. D. W., Atmaja, H. T., Juhadi, N., & Yanti, D. (2022). Sustainable Tourism Development Strategy With AHP (Analytical Hierarchy Process) Method in Pagilaran Tea Plantation Agrotourism, Indonesia. International Journal of Sustainable Development and Planning. https://doi.org/10.18280/ijsdp.170429
Santosa, I., & Suyanto, A. (2018). The Basic Social Values which underlies Social Institutions of Farmers In The Rural Agro-Tourism Area of Central Java. Journal of Arts and Humanities, 7(1), 01. https://doi.org/10.18533/journal.v7i1.1324
Shahbaz, M., Solarin, S. A., Azam, M., & Tiwari, A. K. (2020). Tourism-induced income distribution in Malaysia: a practical experience of a truly Asian economy. Current Issues in Tourism, 23(23), 2910–2929. https://doi.org/10.1080/13683500.2019.1697648
Siong, W. H. (2020). Legal Perspective of Homestay Concept in Malaysia: Hidden Facts or Truth Revealed? In Proceedings Ofthe International LawConference (iN-LAC 2018) - Law, Technology and the Imperative OfChange in the 21st Century, 202–207. https://doi.org/10.5220/0010053202020207
Smith, V., & Eadington, W. (1992). Tourism alternatives?: potentials and problems in the development of tourism.
Suess, C., Baloglu, S., & Busser, J. A. (2018). Perceived impacts of medical tourism development on community wellbeing. Tourism Management, 69(November 2014), 232–245. https://doi.org/10.1016/j.tourman.2018.06.006
Sutiarso, M. A., Arcana, K. T. P., & Suprapto, N. (2021). Local Institutions and Social Capital for Agrotourism Development: A Case Study in Sanda Village, Tabanan-Bali. https://doi.org/10.4108/eai.12-12-2020.2304966
Tiraieyari, N., & Hamzah, A. (2011). Agri-tourism: Potential opportunities for farmers and local communities in Malaysia. African Journal of Agricultural Research, 6(31), 4357–4361. https://doi.org/10.5897/AJARx11.035
Tonny, J., & Wulan, P. (2020). Determining priority infrastructure provision for supporting agrotourism development using AHP method. IOP Conference Series: Materials Science and Engineering, 830(2). https://doi.org/10.1088/1757-899X/830/2/022036
Tseng, M.-L., Chang, C.-H., Wu, K.-J., Lin, C.-W., Kalnaovkul, B., & Tan, R. R. (2019). Sustainable Agritourism in Thailand: Modeling Business Performance and Environmental Sustainability Under Uncertainty. Sustainability. https://doi.org/10.3390/su11154087
Vikhoreva, M. V., Malanina, Y. N., & Ogloblin, V. A. (2020). Implementation of marketing potential of the rural areas: Agribusiness, agritourism, stakeholders. IOP Conference Series: Earth and Environmental Science, 421(2). https://doi.org/10.1088/1755-1315/421/2/022039
Vogt, L. (2014). The economic side of agrotourism: Business performance and competitive factors. Economia Agro-Alimentare, 15(3), 77–102. https://doi.org/10.3280/ECAG2013-003006
Wachira, R. N. (2017). Effect of Working Capital Management on Financial Sustainability of Government Owned Entities in the Ministry of Agriculture, Livestock and Fisheries (Moalf), Kenya. Strategic Journal of Business & Change Management, 4(3). https://doi.org/10.61426/sjbcm.v4i3.498
Wojcieszak-Zbierska, M. M., J?czmyk, A., Zawadka, J., & Uglis, J. (2020). Agritourism in the era of the coronavirus (Covid-19): A rapid assessment from poland. Agriculture (Switzerland), 10(9), 1–19. https://doi.org/10.3390/agriculture10090397
Yang, C., Lukash, S., & Qingran, G. (2019). Econometric Analysis On The Relationship Between Agri-Tourism Development And Economic Growth - The Case Of Central Plains Economic Zone Of China. Ekonomìka Ta Upravlìnnâ APK, 2(151). https://doi.org/10.33245/2310-9262-2019-151-2-33-42

(Baharudin et al., 2024)
Baharudin, N., Jaafar, M. N., & Ismail, A. (2024). The Critical Success Factors of Agrotourism Real Estate Investment. International Journal of Academic Research in Business and Social Sciences, 14(3), 403–418.