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Writer's pictureSunil Mande

Money, trends, and the Farm Stay market!

Updated: Nov 27

Gauriben Brahman was toiling in the fields all day, yet she struggled to make her ends meet. When she discovered she can earn a year’s agricultural income in a month by creating a farm stay experience, there was no stopping her. She now entertains guests from all over India and the world, shares a slice of her life for however short the stay is.


Welcome back! We continue to explore Farm Stays in India – trying to understand why there is a growing interest and how branding and standardization can evolve the industry further.


There are countless Gauriben Brahman in India, benefitting from farm stays directly, and plenty more benefitting indirectly. Urban dwellers are going back to their roots, connecting with people. Priya & Mangaldeep Sharma moved back to their hometown Sikkim, from Bengaluru, leaving their successful careers to connect and life a balanced life after they built on their homestay.


Hide and Teak on a warm summer morning
Hide and Teak

There are plenty of farm stays popping up – and it is as refreshing as any to re-discover budget friendly and experiential travel! For now, let us take a closer look to know what is the motivation of owners like us to open farm stays. Based on the study conducted by The Internet and Mobile Association of India (IAMAI) on Homestays in India, the owners acknowledged that income was a driving factor for 78% of them; while for another 15% it was a pursuit of entrepreneurship; and a small segment of 7% confessed that these were spaces where they can indulge in social interaction. Possibly, then one can think that for those whom farm stay is an entrepreneurial pursuit or a secondary source of income, they take calculated risks; yet for 1/3 of the owners, farm stays are their primary means of income – seasonality of the tourism sector affects them more than the rest; perhaps are often risk averse to not rock the boat.


TALKING IN TERMS OF MONEY

The total revenue farm stays have garnered as of 2018 stood at ₹ 2577.4 crore; this number has seen a raise in this post-pandemic era. Since the key focus is to create meaningful experiences, the farm stays contribute not just to 2/3 of their income to allied industries but also increases their demand 2.04 times. These experiences include farming, culture and entertainment, visibility and purchase of local crafts, experiences, and others. The ripple effect is seen in an increase in employment as much as 4.38 times in the locality of these farm stays.


HOMESTAYS’ CONTRIBUTION TO ECONOMY

​₹2,577.4 crore

​Estimated total value of output of homestays in India

₹879.5 crore

​Estimated total GVA of homestays segment in India

2.04

Estimated output multiplier

4.38

Estimated employment multiplier

Interestingly, homestay as an accommodation providing sector within tourism industry, shows higher output and employment multiplier compared to overall tourism industry which is a combination of several other sectors. The Output multiplier of overall tourism industry is 1.83 and employment multiplier of the same is 2.29 as estimated by Tourism Satellite Account of India.

We saw guests prefer homestays for the same reason – experience. Each place has a speciality – be it organic farming, bird seeing, animal husbandry, cooking in the kitchen, foraging, trails into the forest. All these activities require people to be around to guide them, to talk to them through as they go through the activity. The guests often spend their evenings on local entertainment, those that are native to the place. There is a 98% growth in the cultural engagement sector when a farm stay makes its presence felt. Then comes the local transport – be it taxis, rentals to take people around. It is important to note that over 98% of the time, the home stay owner recommends places to see and activities to engage with; and 75% of the time, the eateries to dine in.


Clearly, opening the farms like Hide and Teak near Bengaluru, to guests from the all over, is the first step towards being more inclusive, accessible, and empowering to the local community. The impact often extends beyond the realm of traditional tourism. We offer unique and immersive experiences to travellers, facilitate cultural exchange, and promote sustainable tourism practices, bringing attention to the grass root realities across Indian bio-diversities.


So, now that you know - when are you planning to stay at Hide and Teak?




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