Marijuana and hemp derivatives in tourism and hospitality is a rapidly growing industry, despite the current legal challenges. New businesses are constantly entering the arena, and consumers are traveling from near and far to purchase products.
Cannabis Tourism Is a Large Part of Industry
Hemp derivatives have been legal in every state since the 2018 Farm Bill, and marijuana has been legalized for medical and recreational use in several states and countries. This has led to a significant increase in demand for related tourism and hospitality services. According to a report by the Cannabis Tourism Association, the global cannabis tourism market is expected to grow at a CAGR of 14.4% between 2021 and 2028. According to a recent article by Forbes, approximately 20% of 2021 cannabis $17 billion in sales revenue was generated by tourists.
The rapid growth presents a huge opportunity for businesses in the tourism and hospitality industry. Cannabis tourism attracts a new type of customer and leads to an increase in revenue. In addition, there are many different cannabis products that are being incorporated into tourism and hospitality services, such as cannabis-infused massages, edibles, coffee shops, and haute cuisine.
Obstacles to the Marijuana and Hemp Tourism and Hospitality Industry
However, with opportunity comes obstacles, and there are several guidelines and regulations that must be followed when incorporating cannabis into tourism and hospitality services. On-site consumption is a major issue because it is often not allowed in public spaces. However, some regulators (county, state, country) have implemented guidelines for on-site consumption, typically at cannabis lounges or cafes.
In addition, as with any other consumer product, the use and sale of cannabis and related products is strictly regulated on the stated basis of safety. Regulations include ensuring properly labeled, dosed, and tested products. Businesses must also be aware of the legal implications of selling and using cannabis because laws vary significantly between states, their municipalities, and countries.
Regulations have a significant impact on the success of cannabis tourism. While some regulations can help to ensure safety and legality, others go too far and hurt businesses by limiting their ability to operate. For example, the prohibition on sale or use of certain types of cannabis products, such as edibles or concentrates significantly limits customer options that may be made available by businesses.
While marijuana and hemp present a significant opportunity for businesses in the tourism and hospitality industry, they also come with a set of obstacles that must be navigated. While generally, regulations for hemp products are less stringent, it is important for businesses to be aware of the guidelines and regulations surrounding the use and sale of cannabis and related products, as well as the potential impact that regulations can have on the success of cannabis tourism.
Contact Cannabis Business Lawyer Susan Burns
Attorney Susan Burns has worked with many cannabis businesses who are operating within the marijuana and hemp tourism and hospitality industry. She knows the laws that apply to your organization and can use that understanding to help you achieve your business goals. When you attempt to navigate the industry alone, you risk limiting yourself and potential growth of your business.
Grab a spot on Susan’s calendar today to schedule a consultation and find out what you need to succeed in the cannabis tourism industry.
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