|
|  |
|
|
Agriculture and Tourism—Changing Industries in Michigan
By Donald F. Holecek, Editor of Michigan Tourism Business
 When Michigan State University was founded in 1855, the vast majority of residents in Michigan were engaged in the agriculture industry as farmers or providers of products and services to those directly engaged in farming. Agriculture and its role in Michigan’s economy have changed dramatically over the decades, and with it have come changes in the landscape of our state, our standard of living, and relationships between agriculture and other industries including tourism.
As faculty in the College of Agriculture and Natural Resources, we have frequent occasion to contemplate the question of whether agriculture or tourism is bigger, better or otherwise more important in our lives or to Michigan’s economy. The problem is that these two industries have become so intertwined and overlapping that double counting is inevitable. Once this is recognized, we move on to more resolvable issues like the merits (or limitations) of our new football coach's open offensive strategy.
 What is becoming more and more evident is the growing interdependency between agriculture and tourism in Michigan. Both industries face significant challenges in competing in an increasingly competitive global economy. To compete, agricultural producers face two changes—become bigger and more efficient or migrate to niche markets less subject to competitive pressures. It is those in the latter category that have the potential to be especially strong allies with Michigan’s tourism industry since tourists are often central to agriculture enterprise niche marketing strategies. Direct sales of farm produce and processed foods to tourists can yield enough profit to sustain a smaller producer who would otherwise not be able to compete in global agriculture commodity markets. In turn, these enterprises contribute to what is interesting and unique to Michigan as a tourist attraction.
 But, the ties between agriculture and tourism go beyond the obvious value added dimension associated with direct sales of locally produced product to tourists. Michigan farms, orchards, and vineyards contribute to a priority pursuit of Michigan’s tourists—sightseeing/driving for pleasure. Driving for pleasure is largely the opportunity to see varied landscapes that change across miles traveled and seasons of the year. The view(s) from the highways are especially important as an element in what makes Michigan an attractive tourist destination, since our tourists dominantly come by private vehicles over Michigan’s highways. The psychological costs or benefits associated with their trip to a Michigan destination is correlated with what they see en route to and in the vicinity of their primary destination.
And, the ties between agriculture and tourism extend beyond product sales and scenery. Agriculture is the basis for many “entertainment” options accessible to Michigan tourists. Many of our festivals and events have agriculture themes or are enhanced by locally produced food or wines. Agriculture cultural attractions ranging from historic properties to museums add to local areas’ attractions.
 Yet another agriculture entertainment option for tourists is discussed in the accompanying articles by Representative Larry Julian and Bill Castanier. Their efforts to expand entertainment options available at selected horse racing tracks may be the only strategy available to stem the slide in the vitality of Michigan’s agriculture-based horse racing industry. These facilities would serve to grow tourism traffic where they are located, which would enhance prospects for local businesses that serve tourists. And, of course, the legislation targets generating state tax revenue sorely needed to offset declining revenue from other sources. Since there are implications in the legislative package for tourism, it is important to become fully informed on what they may be for you and your business, and then share your opinion with those who will influence the outcome of this legislation.
What I have concluded from considering the question of whether agriculture or tourism is bigger of more important is that it’s not the question we should be addressing. That question is: How do we make them both bigger—together?
Your thoughts are welcomed by Don Holecek.
|
|
|
