Agritourism is no longer a side hustle—it’s a $20.3-billion industry reshaping where Australians invest, travel and spend.

Once dismissed as a niche add-on, agritourism, which increasingly includes accommodation, commands 14 per cent of total tourism spending in Australia, according to Ray White.

An owner-operator who has bet on the trend is Kim Alfeldi, who, along with husband Robert—a Sydney luxury real estate professional—sold up and started over in Tasmania with the Wineglass Bay Estate and Kitty’s Mistake Vineyard, near Freycinet National Park.

“When we bought the property, accommodation wasn’t actually the starting point,” Alfeldi says.

“The original vision was the vineyard and cellar door. But the more time we spent on the East Coast, the more obvious it became that there simply isn’t enough purpose-built accommodation.

Agritourism Wineglass Bay wineries vineyards hotels

▲ Wineglass Bay Estate will open in June with a series of high-end cabins.

“There are plenty of Airbnbs, but only a handful of actual hotels in the area,” Alfeldi says.

And major players are increasingly eyeing the agritourism space too, Ray White head of research Vanessa Rader says.

“We’re seeing larger and sophisticated operators, be it from the food and beverage or that hotel accommodation sector, buying and developing these sorts of assets,” she says.

Agritourism megaprojects are already in the works, including the Intercontinental Barossa, a $110-million, 150-room resort, spa and vineyard launched by Strategic Alliance last year, and the $120-million five-star hotel planned by HVL Hotels on one of the Drayton family wine estates.

“It creates so many more revenue streams, they already might have accommodation, food and drink and an events space, but to tack onto the side of an agritourism business like that, you also get the day visitors as well,” Rader says.

Regional agritourism opportunity

The major theme for diversified agritourism businesses is that they are in regional areas.

Three in four trips involving agritourism visit regional Australia. And with direct flights to Bussleton in WA, and Newcastle and Adelaide airports also within reach of neighbouring wine regions, accessibility is strong.

Demand is high at Wineglass Bay, which receives around 350,000 visitors each year, Alfeldi says.

“A lot of people end up visiting just for the day and leaving again, which means they miss so much of what the area has to offer.

Intercontinental Barossa wineries vineyards hotel agritourism

▲ The owners of the Intercontinental Barossa are working through the planning process.

“It’s really a two-night destination if you want to properly experience everything, from hiking to Wineglass Bay to boat tours around the peninsula and whale watching.”

The Alfeldis have invested in the quality of their venture, bringing in Oliver Myles Interiors and Materialised for their architecturally-designed cabins, which are due to open to guests in June.

“The retreats allow guests to immerse themselves in the place rather than just passing through,” Alfeldi says.

In addition to Tasmania, which broke pre-Covid records with 1.36 million visitors in 2025, South Australia is a major player in agritourism.

The state accounts for 12 per cent of agritourism trips, despite representing only 6.5 per cent of total trips to Australia, leveraging its wine regions to attract “high-value” visitors.

Paying a premium

Visitors will pay a premium for this kind of luxury experience as well asstay longer, Rader says.

International visitors participating in agritourism activities spend an average $3894 per trip compared to $2044 for the average international traveller, Ray White found.

Meanwhile, domestic overnight visitors engaging with agritourism spend $863 per trip, nearly double the $462 average.

Quality is the watchword for these experiences and visitors are willing to pay for it.

▲ Wineglass Bay is among the top tourist destinations for Tasmania.

“We sit somewhere in the middle to upper end of the market,” Alfeldi says.

“[Neighbouring properties are charging] over $3000 per night, so we’re not positioned at that ultra-luxury level, but we are offering something design-led and high quality that’s more accessible.

“For a small property with only eight retreats, the model really only works if the experience sits toward the medium to higher end of the market.”

“That also allowed us to focus on quality and design rather than scale… [so] it’s the kind of place you’ll want to linger a little longer.”

The age of wellness

Agritourism opportunities also feed into wellness trends.

“At one of these places, visitors might happily go to the winery, have that farm-to-table experience with fresh organic produce and then enjoy the pool, spa and sauna and all those sorts of experiences as part of the entire package,” Rader says.

While initial capex might be substantial, it’s balanced out with premium-end visitor spend.

“For those developers spending money upgrading or even building new facilities the argument is that the average spend is so much higher as the consumer is looking for a premium experience, they can justify it.”

▲ HVL Hotels is building a hotel on the historic Ben Ean Estate in the Hunter.

Adult couples represent the highest spending segment, but families and friendship groups show strong engagement with higher than average spend per night, Ray White research found.

Business visitors, meanwhile, spend double their usual per trip—$2610—and stay almost three times longer, at 9.7 nights versus 3.5 nights, creating opportunities for function and conference facilities in wineries.

It has also been widely reported that Australians, especially the incoming Gen Z, are drinking less, which puts alcohol-related businesses like wineries in a precarious future position without early investment in other income streams.

“Wine consumption like that has gone down, especially with younger generations who are more wellness-focused,” Rader says.

“People’s appetite to go out and drink is lower, so wineries are adapting, including with non-alcoholic options.”

▲ The focus for agritourism businesses is quality.

Agritourism also feeds into the shift towards “slower travel”— disconnecting from technology and the fast pace of everyday life.

“People want to slow down, immerse themselves in nature and reset a little,” Alfeldi says.

“Being outdoors and connected to the landscape is good for the soul.

“Agritourism and vineyard experiences fit perfectly into that because they allow visitors to engage with a place in a more authentic way.”

Regional Tasmania

Exclusive

31 Mar 26

From Vineyard to Venue: Australia Bets Big on Agritourism

Clare Burnett