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= № 1(21)/1 Supplement, 2016
Anna Ivolga, Jan Zawadka
AGRITOURISM AS A RAISING DRIVER OF MULTIFUNCTIONAL DEVELOPMENT OF RURAL AREAS IN RUSSIA
Abstract
The paper presents the issue of multifunctional development of rural areas and agriculture in Russia. It analyses potentials, challenges and problems of the agritour-ism from the point of view of its impact on multifunctional rural development, explores alternative sources of income for rural people by means of tourism and investigates effects of the agritourism on agricultural production in local rural communities. The paper shows the most important economic and non-economic benefits associated with the development of agritourism, as well as the threats arising from it for the rural areas. The aim is to identify the exist-
ing and potential tourist attractions within the rural areas in Russia on the case of the Southern Russia and to provide solutions to be introduced in particular rural settlements in order to make them attractive for tourists. The paper concludes with a substantiation of the tourism models to be implemented to ensure a multifunctional and sustainable development of the considered rural areas
Key words: agritourism, tourism potential; sustainable development; rural territories; agricultural production; diversification; alternative sources of income, multifunctional development.
Ivolga Anna -
Ph.D., in Economics, docent of the Department
of Tourism and Service
Stavropol State Agrarian University
Tel.: 8(8652) 35-59-80
E-mail: [email protected]
Jan Zawadka -
Dr. Faculty of Economic Sciences Department of Economics of Education, Communication and Counselling Tel.: + 48 504 295 392 E-mail: jan_zawadka(at)sggw.pl
Introduction
In the majority of the developed countries, rural communities do not make a critical impact on the gross domestic product (GDP), but at the same time they concentrate essential volumes of resources, which are lacking in other industries. After the change of the political and economy system during early 1990s, in Russia emerged features that showed its maladjustment to the new state model and market economy. Main features of farming and rural areas were the result of realised over the years development model, which fundamental goal was agricultural production.
Development of rural areas is understood as a process of improving the economic situation and living conditions of people residing in these areas. However, sustainability for rural areas is more than just a sustainable economic growth. The concept of sustainability in rural areas should integrate environmental, economical, cultural and social factors. Here is where a sustainability transforms into a multifunctionality.
According to Erokhin, Heijman, and Ivolga [6], one of the most valuable competitive advantages of rural areas over urban ones is that they harmoniously combine natural and cultural values into a unique mixture of attractions. The increasing trend of last decades in the developed countries is agritourism. Tourism is an effective tool to attract investments and promote interest in rural ways of life, traditions and local identities of rural areas. As an alternative source of income in addition to the traditional agricultural production, rural recreation is especially important in developing countries and economies in transition, where investments in agriculture and volume of state support are lower in comparison to the developed countries of the EU and the USA [16]. The diversity of rural culture in various countries (and even in particular rural areas within a country)
provides opportunities to build attractive and competitive tourist products [17]. Potentially, agritourism provides alternative employment opportunities, which give rural inhabitants a sustainable income that is competitive in comparison to that of urban territories.
The approach implemented in the paper is the application of the principle of sustainable development to tourism. Sustainable tourism seeks to sustain the quantity, quality and productivity of both human and natural resource systems over time, while respecting and accommodating the dynamics of such systems. Drawing on the OECD, research suggests that rural regions need to address the particular challenges of business capacity infrastructure, human capital, innovation and services [18]. Tourism represents an important share of the service economy, both domestically and internationally, and the growth sector. According to Erokhin [5], the development of rural tourism increases employment in rural areas, helps to retain people in rural areas (and even attract them from cities), improves the quality of life by the development of rural infrastructure and related industries. Development of rural tourism also has an essential social impact, since it supports historical-cultural diversity and traditions on the regional level.
Approaches to Multifunctional Development of Rural Areas and Agritourism
Agritourism is considered as dedicated travels to rural areas with relatively undisturbed ecosystems and ethno-cultural complexes, which have a direct impact on the rural development and are subjects for control in the purposes of sustainable rural development [12]. The given concept includes two major definitions. Firstly, agritourism is referred to as an environmentally-oriented tourist product on the domestic and international tourist markets. Secondly, agritour-
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ism is expected to act as one of the tools for sustainable rural development [10]. Following this idea, agritourism may be defined as a kind of activity, related to organization of dedicated travels to rural areas, which provides tourists with a complex tourist product (accommodation, meals, excursion services and entertainment), reflects and preserves the natural and cultural identity of regions and ensures economic benefits for hosting communities through the development of employment opportunities and alternative sources of income for local population.
Multifunctional development of rural areas by means of agritourism may be considered on two levels - the socio-economic and spatial. The first aspect concerns the rational use of production factors available to the village, while the second refers to the proper distribution of socio-economic activities in economic space and results from the process of planning and area spatial management.
The idea of multifunctional development is the way to solve many problems of agriculture and rural areas, and the implementation of this model is based primarily on the creation of new, various sources of revenues for non-agricultural and agricultural population, who is not able to find a full employment in their own farms. For the purposes of the current research the issues of unemployment and depopulation in rural areas, and perspectives of alternative income opportunities are addressed in the works of Kundius and Chermyanina [15], Jelocnik and Ivol-ga [14], and Bondarenko [2], along with the issues of intensification of economic initiatives in the rural areas through the development of special economic zones of tourist and recreational type. International practices and success stories concerning the sphere of sustainable rural development by means of tourism are borrowed from the works of Cvijanovic and Vukovic (investigations of perspectives of rural tourism in separate localities of Serbia and other Danube countries) [3], Vukovic, Kljajic, and Arsic (research of the role of rural tourism in the promotion of multifunctional agriculture) [24], Zawadka [25-27] and Erokhin et al. (comparative analysis of various practices of rural tourism and rural development in Russia and countries of the Eastern Europe) [8].
The above listed approaches to the problem of rural areas multifunctionality were primarily focused on the issue of the rural economy diversification. But this is not a sufficient interpretation range of the analysed category. The concept of multifunctionality can not be identified solely with the process of creating new workplaces. This is a much broader concept, related to local development, entrepreneurship, strategic planning, diversification of agriculture, infrastructure development, improvement of demographic resources, etc.
It should be emphasized that beyond functions of an economic nature, more and more recognised and appreciated are social functions performed by rural areas. The basic activities realised in rural areas, such as agriculture and forestry, fulfill important natural and cultural functions. Understanding the multifunctionality of rural areas wider than as the socio-economic activities and taking into account their
natural and cultural functions is consistent with the principle of sustainable development, understood as achieving simultaneous progress in three areas, i.e. economic, social and environmental.
According to Sillignakis [21], the concept of sustain-ability integrates environmental, economic, cultural and social considerations. In rural areas, population numbers may conceal an ageing population, with younger people moving to the cities for highly rewarded employment opportunities. This means that fewer people work locally and traditional rural industries continue to lose qualified and effective labor force. Attractiveness of rural areas and effectiveness of agricultural production cannot be increased with just a bigger amount of investments into agricultural complex. Rural areas need more than farmer-based development, because the rural way of life is like a social paradigm, which is developed under an influence of a whole set of non-economic factors: social, cultural, historical, ethnic, etc.
Local communities are becoming increasingly important in terms of actions taken to ensure their own sustainability, and are also forming part of wider alliances to preserve the environment globally. There is the recognition that to be sustainable, the preservation of local identities (environmental, cultural, social, historical, etc.) must be grounded in the communities and societies, which exploit those identities [21]. That is why stakeholders in rural areas (policy makers, community authorities, producers, rural dwellers) have increasingly turned to tourism as an alternative means of achieving economic growth and sustainable development through diversification [5].
Contributions of Agritourism to Multifunctional Development of Rural Areas
Economic and social consequences of agritourism development, as an alternative form to mass tourism, provide opportunities for its harmonious inclusion into socio-economic life of the community. The most frequently mentioned features and benefits associated with the development of agritourism are those with an economic character (Figure 1).
Incomes derived from tourists are possible from selling them products, meals, handicraft, hiring sports equipment, teaching horse-riding, providing rehabilitation services and many more. Due to the presence of tourists in the borough also its dwellers have benefits financially. At this point it should be mentioned about the so-called multiplier effect, stimulating local economic situation. Arrival of tourists triggers increased demand for other products and services, which may not have anything in common with tourism. Therefore, in many countries, much store is set by the development of tourism as a field allowing for an economy revival in a relatively short period of time.
Arrivals of tourists to farms and profits of farm owners may be a source of inspiration for many rural residents to start receiving guests in their own farm or providing additional services for visitors, which will diversify their stay and rest. The essence of entrepreneurship in a market economy is searching for new fields of activity or creative imitation of the existing ones. Depending on the local natural and cul-
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tural values, as well as the resources of their own sion of food, recreation, sports or cultural services, farms, active citizens wishing to take advantage of as well as manufacturing and selling traditional food the presence of tourists often decide on the provi- and souvenirs.
Figure 1 - The most important contributions of agritourism to multifunctional development of rural areas
Source: author's development
A common problem of the countryside in Russia is a high unemployment rate and labor surplus in agriculture. Starting from 2008, there has been an accelerated shortage of rural population, which has been worsened by active migration outflow. Depopulation is one of the main threats to sustainable rural development, as it brings about the loss of historically developed areas, degradation of small rural settlements, and depletion of the rural economy. Moreover, it threatens regional and
national food security because of agricultural land withdrawal.
During the past 20 years (from 1990 till 2010) the proportion of rural inhabitants within the total population of Russia has decreased by 2.9 percent (from 45.7 % to 42.8 %). The dynamics of the main social and economic indicators of rural development in Russia (Table 1) confirms that small rural settlements are declining, while the population is becoming more concentrated in larger communities.
Table 1 - Social and demographic indicators of rural development in Russia from 2010 to 2013
Indicator 2010 2013
Average size of settlement, people 1700 1650
Proportion of population below active working age, % 22.8 22.4
Proportion of population over active working age, % 21.2 21.0
Average size of household, people 2.1 2.2
Life expectancy, years 66.6 66.8
Share of population with higher and secondary education, % 31 33
Source: author's development based on [6]
The labour market in rural areas of Russia is characterised by two divisive tendencies: a decreasing population in general and an increasing proportion of the population of an active working age. The growth of the population at an active working age is faster than economic expansion rates, which drives unemployment up in rural areas. Despite the slowly growing employment level (Table 1), rates of unemployment in rural areas of Russia are still very high (above 30 % in 2011). Moreover, growth rates for employment are slower than those for the economically active population, which forces people seeking jobs to migrate from rural settlement to urban areas.
Rural areas need a wide range of associated services positively influencing the creation of new work places in branches indirectly related to tourism services, which to a large extent may have an effect in the mitigation of the above mentioned problem. What is more, the chance of finding an employment in a place of residence is an inhibitor to migration of young people who can not see their prospects in the countryside.
Diversification of rural economics and expansion of income opportunities for rural inhabitants are the key tasks on the way to increasing the sustainability of rural areas in Russia. For rural territories, diversifi-
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cation means going above traditional agricultural activities, which is currently a vital necessity.
Diversification has to be based on local infrastructure improvements. The improvement of the existing facilities and creation of new infrastructure are the essential actions of local government and entities interested in developing tourism, undertaken in order to create a positive image of the town, indespensable in effective development of this and also other forms of tourism. In order to strengthen the preconditions for sustainable rural development and utilise the existing competitive advantages in rural areas, the Government of the Russian Federation accepted the Federal Target Program «Sustainable Rural Development in 2014-2017 and for the period until 2020». Among the prior directions of that Program, those currently applicable for the Stavropol Region are:
• the satisfaction of needs of rural people, including young families and young specialists, in suitable dwellings;
• the development of integrated facilities in rural settlements, and their social, transport and engineering infrastructure;
• grant support for local initiatives coming from rural inhabitants.
Investments, undertaken by boroughs, focused on development and modernization of the local technical infrastructure which contributes to improving the quality of services for tourists, concern: local roads, parking lots, sidewalks, street lighting; waterworks and sewerage system, local sewage treatment plants; landfills, separate waste collection, etc.
Agritourism is mainly seen through the prism of economic benefits achieved by hosts and the local community, and also the prosperity of the local economy. Currently, it is hard for rural settlements to compete with urban and suburban areas for investments. Income gap between urban and rural territories is permanent over the referred period of 2000-2013- about 150 % (Figure 2).
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-5ÏÎ.6 66.0 09 1 76 1 100 1 130 2
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-Rural areas
Urban areas
Source: [5]
Figure 2 - Dynamics of average per capita disposable income in rural and urban areas of Russia in 2000-2013 and liner trends to 2015, euro per month.
Overcoming differences between urban and rural areas in income level in particular and in economic, technological, and social development in general should become the strategic trend of rural policy in Russia. People will migrate back to rural areas from cities only in case they are aware of certain level of income, as well as infrastructure, comparable to urban conditions.
As of today, almost a half of regions in Russia (47 %) are not favourable for sustainable rural development. Some of the regions are even considered as depressed ones, with various symptoms of economic downturn and social depression. Those regions concentrate about 64 % of rural population of Russia.
Thanks to the arrival of citizens to agricultural farms deeper understanding of two different communities (urban and rural) is possible. Tourists, who pleasantly and efficiently spent their free time in rural environment, made closer relationships with their
hosts and other members of rural society (which often become long-term acquaintances and friendships) change their vision of rural residents. Having a rest at such a farm provides an opportunity for: gaining or expanding knowledge about agricultural practices, getting to know and taking part in production processes, learning about problems of animal husbandry and other issues related to the foodstuffs manufacturing. Staying at a farmland is also a great occasion to meet folk culture and learn about still cultivated rural customs and traditions which are often different from those of urban residents, and to taste local food and drinks.
A considerable part of residents, living in regions where agritourism is being developed, is characterised by great activeness in self-organisation and ability to cooperate. An evidence of this fact is at least presence of numerous agritourism associations and
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local tourist organisations. Hosts aware of the benefits associated with tourist stay, who aim at attracting greater number of tourist, strive for an increase in quality of services they provide and its diversification. That is why, many times they undertake cooperation with other owners of agritourism farms, disposers of gastronomic infrastructure and diverse tourist attractions, and also the rest of rural residents who may contribute to enrichment of the offer and making it more attractive.
Rural residents cultural activity is extremely important for tourism development. Tourists presence gives an argument for folk bands to work, local culture and religious traditions to be supported, organisation of feasts, church fairs, harvest festivals and other common amusements uniting local population and visitors. Tourist interest in regional attractions also allows rural residents to look at their surroundings from other perspective and value it. Thanks to tourism influence increases tolerance for distinctness of behaviours and differences in customs.
Agritourism development, which one of the greatest trump is contact with non-polluted environment and its resources. However, agritourism realised in accordance with conception of sustainable development may occur to be a form of valuable terrains protection, which also does not exclude their simultaneous economical utilisation. Agritourism contributes to creation of so called «green workplaces», integrating development of tourism and principles of environmental protection, which is conducive to sustainable development of rural areas. A way of natural value areas protection against degradation and pollution caused by tourism exploitation is to increase an ecological consciousness of local governments, communities and people who should be the most interested in preserving natural habitat values, that is tourists.
It is impossible to predict all the benefits which may arise from starting an agritourism business. Many of them have incommensurable character or does not reveal oneself in material form, but simply embodies in better living conditions. Agritourism causes that the local economy gets multifaceted, becoming less susceptible to market unsteadiness, which is important in typically agricultural areas. Thanks to tourism business farm families acquire new skills and learn entrepreneurship, which can pay off in other disciplines. Mere contact with visitors and exchange of views bring immeasurable, but significant benefits. For example, in case of foreign visitors tourism mobilises foreign languages learning.
However, it should be noted that in a number of benefits associated with the development of agritourism may also occur risks and negative consequences. Agritourism, as well as other forms of agritourism may become a threat to the environment, especially in case of over-concentration of tourist attendance. Practicing various forms of active recreation, such as: downhill skiing, horseback riding, rock climbing, bike racing and hiking expeditions can cause degradation of the rural landscape, pollution and excessive noise. Just as an excessive number of tourists may harm the natural environment, so their stay in the rural areas can destabilise the local socio-cul-
tural environment and disrupt the rhythm of rural life and work, and also raise conflicts between tourists and residents due to transferring of urban lifestyle and a different system of values to the village.
Agritourism can also cause irreversible changes in the rural area through its accompanying intense urbanization processes. Uncontrolled infrastructure development often destroys a traditional architectural layout of the place. A village sometimes loses its identity - a unique color and special atmosphere. Tourist destinations offer more commercialised and often counterfeited version of its customs and folklore, tailored to the tourists' expectations and imagination.
Conclusion
The implementation of such a multi-sided and complex approach to agritourism as a driver of sustainable and multifunctional development of rural areas in Russia involves the completion of a range of tasks. Among the top-priority tasks, we emphasise:
1. development of theoretic and methodical issues of sustainable rural development by means of rural tourism;
2. assessment of the current and long-term sus-tainability of the economic development of rural territories in Russia;
3. development of mechanisms for implementing the Strategy for sustainable rural development through particular kinds of tourism and action plans for short-, medium- and long-term perspectives;
4. elaboration of social, economic, legal, administrative and managerial measures which drive the touristic and recreational complex of Russia to a brand new qualitative level and provide complex sustainable solutions through economic, social and environmental tasks along with the preservation of the natural resources and historical and cultural potential of the country.
Prerequisite for success in agritourism is i.a. positive attitude of the main stakeholders towards tourism. Undertaking actions for the development of tourism requires carrying out a meticulous account of the benefits and risks. Tourism, beyond the benefits of raising money and economic recovery, also requires long-term investment aggravating all the inhabitants of a certain village, so not only those who will directly benefit from the influx of tourists. Tourists will not come to the village which lacks basic infrastructure related to recreation and leisure. Room rental, guest services, organizing their leisure time often requires a significant financial investment, related not only to the renovation of the house, but also to equipping it so as to provide visitors the appropriate standard.
To increase revenues from tourism, municipalities and local communities should concern about the largest possible number of tourists visiting a particular place, simultaneously taking into account the tourist capacity. It is lucrative not only to extend the length of tourists stay, but also to extend the tourist season by introducing new functions independent of weather conditions. Increased visitors expenditure can be achieved not only by raising prices, but
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also by the introducing variety of additional attractions, suitably managing the area. Often reservation arouses the fact of indifference or jealousy of the rural population which does not gain the financial benefits from tourists' presence. Meanwhile, all residents may get some profits from the development of tourism in the municipality. Making the community and the authorities of territorial units aware of this fact and incorporating it during masterminding the municipality development strategy is an important factor in aiming at diversification of the municipality incomes and increasing revenues from tourism.
However, a particular attention should be paid to the fact that agritourism is only one of the elements of rural areas multifunctional development. Placing too much hope in agritourism is risky for the municipalities which are deprived of any tourist values. Researches concerning agritourism market, including existing and potential customers, are therefore necessary. Future
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