Cannabis Tourism and the Economy: Exploring the Impact
Cannabis tourism has developed into an economic sector of significance in many places where marijuana can be legally used. Cannabis tourism combines typical tourism activities with recreational cannabis use, adding new tourism areas. While Amsterdam was the first city to develop cannabis tourism decades ago, recent legalization efforts in multiple places in North America and elsewhere, have opened up many new opportunities for cannabis tourism.
Cannabis and the Economy: Impact Metrics
Legalized cannabis tourism produces economic benefits for multiple sectors that translate into substantial revenue streams. In 2020, Colorado had $2.2 billion in cannabis sales, with cannabis tourism accounting for about 20 – 25% of purchases. Cannabis tourists typically spend more than other tourists, about 30% more daily. Not only do cannabis tourists purchase cannabis, but they also purchase food, lodging, entertainment, and guided experiences.
Job Creation and Economic Growth
The cannabis tourism industry creates many different jobs in addition to sales jobs. Cannabis tour and excursion guides, hospitality personnel, transport operators, and event coordinators all contribute to this expanding sector. Ancillary businesses, including cannabis hotels and resorts, specialized cooking classes, and cannabis-focused wellness retreats, have also emerged to serve the cannabis-interested traveler.
Regional Economic Development
Cannabis tourism economically supports some economically marginalized and largely rural areas. The Emerald Triangle area of California took struggling agricultural areas and morphed them into thriving tourism destinations. Places within the region can leverage their historic cannabis cultivation to attract cannabis visitors looking for authentic experiences. The Emerald Triangle has demonstrably revitalized these once struggling agricultural communities with a calendar of events that use cannabis specifically and related agritourism, such as farm tours, harvest festivals, and so forth.
Tax Revenue Generation
Legalized cannabis tourism also generates tax revenue for state and local governments. In 2020, Nevada earned over $100 million in cannabis tax revenues, most from tourists traveling to Las Vegas. Many of these tax dollars support education, infrastructure, and public health initiatives. Thus, while cannabis tourism means economic activity for local businesses, it also represents broader societal benefits as taxes recover these costs.
Challenges and Considerations
There are complexities to the cannabis tourist business regulation. The location where tourists can consume cannabis may be even more unresolved than the interstate transportation of cannabis. Banking restrictions add to operational challenges for businesses, and of course, the federal prohibition of marijuana creates an ongoing uncertain political environment.
International Views
The impact of cannabis tourism on economic development has been considered in Canada and Uruguay, each having legalized cannabis and created pages to develop a cannabis tourist industry. The Netherlands is developing its cannabis cafe-sector, while countries in Europe contemplate potential adjustments. Each country/jurisdiction weighs the benefits of tourism while balancing the public health/safety issues.
Future Perspectives
The potential of cannabis tourism for economic impacts are still developing as more areas consider legalization. Industry analysts project that strong growth opportunities are possible, especially with experiential tourism that combines cannabis with wellness, adventure, and cultural tourism. The successful positioning of cannabis tourism is demonstrated through thoughtful regulation as a good opportunity for economic growth and social responsible consumption.