States Attract New Wave of Tourism With Legalized Cannabis English FinancialBuzz.com - News Commentary
NEW YORK, March 18, 2019 /CNW/ --Last year, Canada became the second country ever to legalize cannabis entirely, joining Uruguay as the world pacesetters. Now, visitors across the world are flocking to the nation to try legal cannabis. However, despite Canada's legalization, the U.S. market generates the most revenue globally. Currently, the U.S. has only 10 states and the District of Columbia that have legalized cannabis entirely and states such as California, Colorado, and Nevada are the biggest market drivers. Many visitors have traveled to those states for what is being called cannabis tourism. For example, in 2016, Colorado saw a total of 82.4 million travelers and a survey conducted by Colorado Tourism reported that 12 million, or 15%, of those travelers, participated in cannabis-related activities. Among that group, 5% of those travelers said they went to Colorado specifically for cannabis reasons. The staggering number of visitors reveals that tourism is helping further fuel the cannabis marketplace. In combination with hometown residents and visitors, Colorado and California were able to deliver over a billion dollars in sales in 2017. The growing prevalence of cannabis is expected to further drive tourist-based sales in areas that have already legalized the plant. The increased sales will also bolster cannabis-related taxes, propelling the states' economy. According to data compiled by Genesis Market Insights, the global marijuana market was valued at USD 17.18 Billion in 2017.
Furthermore, the market is expected to grow at a CAGR of 22.91% from 2018 and reach USD 58.90 Billion by 2023. Biome Grow Inc. (OTC: BIOIF) (CSE: BIO), Emerald Health Therapeutics, Inc. (OTC: EMHTF) (TSX-V: EMH), Terra Tech Corp. (OTC: TRTC), Capstone Turbine Corporation (NASDAQ: CPST), Harvest One Cannabis Inc. (OTC: HRVOF) (TSX-V: HVT) Colorado, California, and Nevada are the biggest cannabis market drivers, but other states such as Massachusetts, Oregon, and Washington are also expected to contribute significantly to the marketplace. Moreover, Michigan recently legalized recreational cannabis during the U.S. midterm elections in November.
The state is expected to deliver over a billion dollars in sales once its recreational cannabis marketplace is operating at full speed. Additionally, the demand for cannabis is increasing globally, as more countries move to decriminalize or legalize it entirely. WIth more of these countries adopting progressive legislature, more visitors are expected to travel to those nations in an effort to try cannabis. "As consumer interests and legal regulations change, the agile Travel & Tourism sector adapts quickly to develop products and services to serve new niche markets. And so new 'cannabis tourism' markets have been quick to spring up in response. And where grass is growing, tourism businesses—and governments—are making serious hay," according to the World Travel & Tourism Council.