A staycation boost for the rural economy

The financial, logistical and emotional impact of the coronavirus pandemic has served to compound the wide-ranging challenges and uncertainties facing the farming industry and the wider rural economy.

However, resilience and an ability to adapt have rarely been in short supply across our rural communities, and as Benjamin Franklin once famously proclaimed, “out of adversity comes opportunity”.

Indeed, land diversification for tourism is offering a new beacon of hope.

Many farms that already provide holiday lets, camping, bed and breakfasts and farm stays as a way to support their core agricultural businesses will have experienced unforeseen revenue hits over recent weeks. But outdoor staycation bookings are reportedly now on the rise as thousands of holidaymakers abandon their overseas travel plans and turn their attention to lower cost, domestic alternatives.

As a rule, rural locations combine lower population densities with less reliance on public transport, making them a conducive environment for social distancing. And as lockdown restrictions are lifted, with health concerns remaining paramount, new commercial opportunities are emerging with farm tourism diversification looking set for further growth.

Such opportunities may include the conversion of existing farm buildings into holiday lets or non-productive land being put to revenue-generating use with the introduction of tent pitches, shepherd huts or yurts. At the time of writing, I had personally applied for planning permission for six glamping pods on land adjoining my property in Clackmannanshire.

With any new non-farming venture however, come critical gaps in knowledge. Shrewd business planning, expert advice and judicious risk management is consequently called for, alongside prudent insurance arrangements to protect against potential new liabilities.

Tourism-related projects will invariably involve members of the public setting foot on farm land. This makes health and safety risk assessments and measures to ensure a safe environment, such as adequate signage and hygiene facilities, essential considerations at the very outset.

Public liability insurance is a must – and insurers may request site inspections to ensure that quality standards and requirements are being met. In some cases, new holiday projects may also see farmers employing staff for the very first time, resulting in a new requirement for employers’ liability cover.

With a business plan on point, however, and the risks effectively managed, the rewards can be plentiful. The success of some rural tourism ventures has even seen them outperform the revenue streams of traditional farming activities. Against this backdrop, now could be the time for more farmers to recognise the opportunities, branch out and join the diversification revolution.