Tourists willing to pay more for locally sourced food
Sep. 13—Most U.S. visitors to Hawaii said they would pay more to have the food they buy locally sourced while on vacation, a recent study has found, bolstering research in support of increased local agriculture.
Most U.S. visitors to Hawaii said they would pay more to have the food they buy locally sourced while on vacation, a recent study has found, bolstering research in support of increased local agriculture.
Some 78 % of 454 domestic tourists surveyed during 2021 in the Journal of Hospitality and Tourism Insights study, which was published in August, said they would pay a premium for locally sourced food at hotels and restaurants. Of that, 40 % are willing to pay up to 5 % more ; 23 % would pay 6 % to 10 % more ; 16 % would pay 11 % to 15 % more ; and 10 % would pay 16 % to 25 % more.
"We now know that tourists are not just willing to purchase locally grown food and that they're willing to pay more, but how much more, " said Jerry Agrusa, a travel industry management professor with the University of Hawaii at Manoa's Shidler College of Business and a co-author of the study.
Agrusa said tourists' willingness to pay more for locally sourced food may be tied to their interest in a cultural experience while in Hawaii. They also recognize the Hawaii branding for certain products, like coffee, macadamia nuts and pineapples.
He also said that local agriculture is healthier for people and better for the environment, which is a consideration for tourists.
More local farming also can help reduce Hawaii's dependence on imported food, which comprises about 90 % of the state's food supply, diversify its tourism-heavy economy and provide jobs and healthy food to residents.
Support for agriculture in Hawaii is lacking, however, as farmers continue to struggle with access to affordable land, high operational costs and little government assistance. The state Department of Agriculture's operating budget for the fiscal year is $52.9 million, or about 0.3 % of the state's overall budget.
Stakeholders want to tap into larger institutions like schools and hospitals, which regularly need large supplies of food, to support local agriculture. Similarly, hotels and restaurants could be potential markets for Hawaii farmers.
"I believe that if more restaurants and hotels could, they would buy more locally-sourced food and support our local farmers, " said Caroline Anderson, director of planning for the Hawaii Tourism Authority, in an email. "Supporting local food producers is a key part of our move to a more circular economy, and the contribution by visitors to that moves us closer to a regenerative model of tourism the HTA is working towards. Efforts must continue to make it easier for the smaller farms to work collectively to sell to restaurants and hotels."
Currently, the tourism industry does little for local agriculture.
A by the state Department of Business, Economic Development and Tourism found that just over half of Hawaii's agricultural sales in 2019 came from Hawaii residents ; 37 % of those sales were exports, 9.4 % came from tourism and 3 % was purchased by the government.
Agrusa said that one of the concerns that hotels, restaurants and potential institutional buyers like the state Department of Education face when considering purchases from local farmers is their ability to consistently fill large orders for food.
Research like the study he co-authored demonstrates the existence of a market for local agriculture, which he hopes leads to more support—from the government and other stakeholders—for local farmers.
While farming is generally not a lucrative career financial investment, setting aside more affordable farmland and other efforts would encourage the recruitment of prospective farmers, Agrusa said. That could then lead to more farming but also newer, more efficient forms of agriculture like hydroponics that require fewer resources to operate.
"What could happen with this is, possibly we can now help the new farmer, " Agrusa said. "If we can show that there's a market, if we can show that there's a reason to be a farmer ... we can make Hawaii less dependent on the importation of food."
