Canada could generate $2 billion per year in tourism revenue once cannabis will be legalized for recreational use in October. According to BNN Bloomberg, an industry expert explains that the revenue will need some time before it reaches that milestone.
The “Cannatourism” Industry
Shaman Ferraro is the CEO of Gocanna, a cannabis tourism guide.
Ferraro says that Canada will see a boost in tourism revenue as soon as marijuana is legalized. His estimates are based on a report from 2015 on Colorado’s tourism agency, that found that 4% of the tourists visited the state to get to legal marijuana dispensaries, and 23% of the tourists agreed that their decision was influenced by the legal access to cannabis
Adding the amount of money U.S. tourists spend while visiting Canada, Ferraro concluded in an interview at the Marijuana Business Daily conference that:
“The tourism sector is going to be huge for cannabis. There’s going to be some early adopters but as the industry evolves, you’re likely to see more integration of cannabis in tourism hot spots.”
Ferraro knows that the $2 billion won’t be generated in the first year of legalization, but as the industry evolves and regulators discover a way to market cannabis to tourists, the tourism sector will see an increase in revenue.
Businesses Must Follow Strict Regulations
Ferraro added that municipalities would manage how they want the “cannabis-focused tourists” to visit the local establishments and provide tours.
According to the established government restrictions of the legalization of the drug, businesses will have tourism operators help promote their services, explained Trina Fraser who is a partner at Brazeau Seller Law.
Some of the restrictions are the way cannabis is marketed. Companies are prohibited from sponsoring, creating contests or be represented by celebrities. Health Canada stated that the violation of these strict regulations would end up with license suspensions, fines up to $5 million or jail time.
Doris’s passion for writing started to take shape in college where she was editor-in-chief of the college newspaper. Even though she ended up working in IT for more than 7 years, she’s now back to what he always enjoyed doing. With a true passion for technology, Doris mostly covers tech-related topics.