This paper focused on how and what diversified activities influence the price level of agritourism. A hypothesis that contrasts two directions was examined: facility-based and local culture-based activities. First, from the conceptual consideration, we defined that agritourism based on local cultural resources can internalize positive externalities, which are accompanied by local cultural resources, into income, unlike facility-based activity that has no connection with local cultural resources. Second, the results of estimations from the price determinant ordered logit model clarified that owning a swimming pool was the most common and influential factor in enhancing the price level while regional diversity was observed in terms of local cultural resource-based activities such as restaurants, world heritage sites and DOC wines. These findings indicate that hardware-based evolution is more effective in the short term than evolution based on software aspects. Nevertheless, this hardware-based evolution of agritourism is implicitly based on the assumption of continuously growing demand and sufficient financial capability for the fixed investment. When growth in demand becomes stagnant, facility installation can be a heavy burden on operators. Consequently, for the sustainable development of agritourism it will be necessary to harness locality to create a balance between facility-based services and local culture-based services.


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