The idea of offering farm tourism accommodation is a tempting one. The space is there, the views are there, and it could provide a second income.
The idea of offering farm tourism accommodation is a tempting one. The space is there, the views are there, and it could provide a second income.
But one might naturally wonder about the work involved, and how it could fit in with the main farm business. The financial side could raise questions too.
King Country Farmer spoke to a farming couple well placed to answer those questions.
Trudy and Brendan Denize own River Run, a 730ha effective “typical King Country” sheep and beef farm 14km south of Piopio. It’s Lord of the Rings country, with views of the area’s towering limestone bluffs.
Ripples Retreat, a custom-built cabin set beside the Mangaotaki River, is a valued part of their business.
High occupancy rates reflect its popularity with both the international and domestic market.
Trudy, a designer by trade, described Ripples as her passion project. She said it allowed her to express herself professionally by creating a space that let busy people wind down in a serene environment.
“I get to experiment with all these crazy ideas I have. I’m passionate about making spaces really cozy and inviting for humans to occupy; ones that make them feel good. People are relaxed, rejuvenated and inspired when they leave Ripples.”
The couple have received “amazing” feedback from guests.
“One man’s wife gave him a gift voucher. He said it was the best present he’d ever had, and it was his 40th birthday,” Trudy said.
The business launched in 2020, in the middle of Covid – which was “a bit freaky.” They were able to make a positive shift, despite the lack of international tourists.
“Aucklanders couldn’t travel to Bali, so they’d come to Ripples instead. It actually worked out fine for us,” Trudy said.
The Denizes had advice for anyone considering starting a similar business.
One consideration was to be aware that there are various farmstay models. Ripples is a “destination stay,” a holiday in its own right – in a beautiful location – rather than just a place to sleep.
Trudy said thinking about finance came first: do a profit and loss statement, even a simple one on an A4 piece of paper. Having a solid business plan, and a well-designed cabin structure were also musts.
“It has to make money, because otherwise you can’t afford to do it.”
After that, it was about visitors’ experience and an ‘under promise and over deliver’ philosophy.
“The guests are important, so you’ve got to look after them. You’ve got to have a really good email and communication structure,” Trudy said.
The most work was in the marketing – either doing it yourself or paying someone else. That had been her biggest surprise on starting the business.
Social media “which changes all the time” and the main website were important, but so was understanding other platforms.
“If you’re on Airbnb, you need to learn their system as well. You need to learn how to link all those systems together, so you don’t end up with double bookings. I’m now looking at doing blogs, so I’ve got to learn how to do that too.
“I use [NZ Government business website] Digital Boost quite a lot.”
The overall time involved was significant – a full-time undertaking for one person with cleaning, marketing and admin combined.
“To keep that occupancy rate up, you’ve got to be on it all the time; Ripples is tracking toward 73% occupancy this year.”
The key to success was simple: do a good job and people will be happy.
“Treat your guests with respect, want them to have a really good holiday. Don’t just do it because you want to make money off them … people can feel it. They know if you’re interested in making sure they have a good holiday.”
The costs were in the hundreds of thousands.
To do a legally compliant, custom-built cabin like Ripples, think $200 000 and upwards. That meant allowing $3-4000 per square metre. It would likely take two years from planning to completion.
The Denizes were not planning to stop at one cabin.
Ripples 2 had been in the making for 12 months; plans were currently with the council, and “hopefully” it would be open by summer.
For this project, they had drawn on experience.
Key questions this time around had involved electricity (is solar viable yet – no) and how the access will fit in with the farm, and with the original Ripples.
Trudy said the second would be private but close to the first, to allow for ease of cleaning.
The Denizes’ decision to create another Ripples shows how well the farmstay fits with the farm: near perfectly.
“You’re not using up much land. Per hectare, when you look at it from a completely business point of view that’s our most profitable piece,” Trudy said.
“What else would you run on there? Two bulls, one horse, half a horse?”
Brendan said before starting out, he had a few concerns.
“I was somewhat nervous my farming might impact the guests’ experience.
“Ripples is within earshot of working facilities such as woolsheds, cattle yards and barking dogs. But talking to guests, they don’t even notice. Or if they do, they enjoy the quirkiness of that noise because it comes with farming, with the rural experience.”
He also wondered about hosting tourists or town people who did not understand the New Zealand farming way of life.
“What if they see a lame sheep? We try our best to mitigate that, but it is part of farming and sometimes it will happen.”
It turned out the situation was easily managed.
“Some Chinese people stayed the other day. They loved it here but commented how sad the sheep looked in the rain, and wondered why I didn’t house them,” Brendan said.
‘I explained what wool is, the purpose of wool on a sheep’s back. I also mentioned the benefits of fresh air, clean grass and open spaces for animal health, as opposed to housing them in barns.
“That would outweigh any perceived negativity of being in the rain.”
Ripples made a meaningful financial difference, albeit not at a mortgage reducing level.
“It’s been an enjoyable buffer, in the sense that it’s completely independent of farming. When we have a boomer summer, that’s great; [but] stock prices go up. So, you win and you lose.
“Ripples doesn’t care if we’re having a drought and it doesn’t care if there’s an eczema outbreak.”
The income supports their three childrens’ education and on lifestyle spending such as holidays.
“Historically, 100% of our income came from farming, so any surplus for personal benefit had to come after servicing the business.
“Farming is so money hungry: fertiliser, fixing the old yards, putting a new roof on the woolshed … there’s never anything left behind to make you feel good about spending money. And if there is, then there’s that mortgage staring at you.
“But Ripples income is independent of the farm, so I have a different attitude. I feel more comfortable shouting the kids a holiday.
“We have two independent income streams now. There’s no denying that it’s an asset when you’re visiting the accountants and negotiating budgets and stuff. You’ve got a completely separate column on the ledger.”
Trudy said creating Ripples together as a couple had been a positive.
“It’s been a nice experience for us to do together. The farm is his thing and Ripples is my thing, but there is definitely a crossover.
“Brendan does all the outside stuff. He’ll do the lawns and often go down and greet the guests. Occasionally he’ll give them free farm tours.”
This role had led to a benefit: positive comments he wouldn’t otherwise get, given that the farm’s products were made for export.
“Tourism Waikato’s Nicola Greenwell said that farming families considering starting a business like Ripples needed to get a sense of their market. “They should seek advice to ensure they understand the tourism sector… there is more to [it] than people often see, believe or understand.
“We are available to assist anyone contemplating a tourism business within our regional area.”
