Journal of Experimental Agriculture International

The aim of the study was to examine the economic sustainability of agro-tourism enterprises with the estimation of investment and revenue in three districts (Kalimpong, Darjeeling and Jalpaiguri) in northern parts of West Bengal which are very rich in agro-ecological natural resources. Farmers, especially marginal and small have faced a lot of challenges due to various reasons resulting in inadequate harvests. Agro-tourism enterprise can offer farmers with alternative revenue streams beyond traditional crop and livestock sales through diversification. For the current study, districts and villages were selected following the purposive sampling method in 2023-2024. A sample of 67 numbers of agro-tourism farmers / entrepreneurs was considered for collecting primary data collection for the information about the cost structures (both fixed and variable costs) and revenue etc. The profitability and financial viability of agro-tourism entrepreneurship are confirmed by the estimated results of financial project appraisal techniques (discounted method), which finds that the estimated values of Benefit-Cost Ratio (BCR), Net Present Value (NPV) and Internal Rate of Return (IRR) are 1.5, ₹1695158 (at 12% percent discount rate) and 35.10% respectively. The Pay Back Period (PBP) is also low (3.10 years) and the break-even points (BEP) stand at 5904 number of tourists (physical unit) and ₹3470632 (monetary term) respectively. Strengthening the awareness and knowledge of local community in those locations are the most crucial component for bringing the business activities in a competitive manner. The enterprise can also engage unskilled, unemployed and women for earning their livelihoods. Considering the social and economic benefits of agro-tourism industry and scope for further development, the findings suggest for more awareness, more promotion, improved technology and adequate investment policy of Government and other investment organizations. Thus, agro-tourism entrepreneurs and authorities (government) should work in a collaborative mode for visible involvement in developing the sustainable rural tourism industry in the location of study.