Amid the post-pandemic economic crisis, businesses, governments, and regulators are looking to cannabis tourism as a driver of US economic development. What is the potential of this sector? $17 billion, according to a report featured in Forbes magazine.
Of the $25 billion that will be sold legally in 2021, Forbes estimates that up to $4.5 billion will come from tourists, who account for another $12.6 billion in cannabis retail sales and taxes.
Adult Retail Cannabis: The Multiplier Effect
For every $1 spent retailing cannabis, there is a multiplier effect: another $2.80 is injected into the local economy.
In California, for example, hemp growers have incorporated tourist attractions into their farms. During tours of Mendocino County, visitors will learn about the plant’s active ingredients and health benefits, its terroir and geology, and local farming traditions.
They are tourists and they are shopping; they are here to spend money in the mecca of weed. Such clients typically spend between $300 and $400 at the dispensary during their visits: four times more than the average shopper.
The rise of the market thanks to the generation of millennials
In recent years, the offering of medical products and services related to cannabis has become widespread in the field of health tourism, including therapy and treatment based on natural products and meditation, as well as other holistic disciplines.
According to the World Institute of Wellness, tourists visiting wellness centers spend 50% more than the average international tourist and 178% more than the typical domestic tourist. By the end of 2022, the market size is predicted to reach about 919 billion US dollars. This accounts for 18% of the global tourism market.
On the other hand, a 2020 study by consulting firm MMGY found that 18% of American travelers are interested in trying cannabis. If adults with an annual income of $50,000 or more are included, the percentage rises to 62% of respondents. This is a great potential for cannabis tourism.
Brian Applegarth, the founder of the Chamber of Cannabis Travel Association International, predicts that as they age, millennials will boost cannabis tourism. According to Applegate, “by 2025, 50% of US travelers will be millennials, and their relationship with cannabis use will be extremely normalized,” further increasing the limitless potential of this market segment.