How tourists from Texas are contributing to the growth of New Mexico’s adult-use cannabis market, and the potential for a “cannabis tourism circuit” across the Southwest.
New Mexico’s adult-use cannabis market has been on the rise in recent years, with out-of-state visitors playing a significant role in its growth. A report from the state’s Legislative Finance Committee has found that tourists, particularly those from neighboring Texas, have contributed significantly to the cannabis industry’s success, accounting for approximately 35% of all adult-use sales in the state.
One of the factors driving this trend is the fact that New Mexico is currently one of only a few states in the Southwest that has legalized adult-use cannabis. As a result, the state is drawing in visitors who are interested in purchasing legal cannabis products. Additionally, the report notes that New Mexico’s medical cannabis program has experienced steady growth over the past year, with more than 120,000 patients enrolled as of February 2023.
Tourists are also spending more on cannabis products than local residents. According to the report, the average tourist spends around $40 on cannabis products during their visit to New Mexico, while local residents spend an average of $37. This difference in spending could be due to a number of factors, including the novelty of being able to legally purchase cannabis products for some visitors, as well as the potential for higher prices in states where cannabis is not legal.
New Mexico’s cannabis industry is also benefitting from the potential for a “cannabis tourism circuit” to develop across the Southwest. As more states legalize cannabis, tourists may begin to plan trips that take them through multiple states where cannabis is legal. This could create an economic boom for the region and further boost sales for New Mexico’s cannabis businesses.
Despite the positive trends in the market, the report does highlight some potential challenges for New Mexico’s cannabis industry. One of these challenges is the potential for regulatory hurdles, particularly as the industry continues to grow and more businesses enter the market. Additionally, competition from neighboring states such as Texas, which is currently considering its own adult-use cannabis legislation, could impact New Mexico’s market.
To address these challenges, the report suggests that New Mexico’s cannabis industry should focus on product quality and customer service to remain competitive. By providing high-quality products and excellent customer service, businesses can differentiate themselves from competitors and build a loyal customer base.
Overall, the report’s findings indicate that New Mexico’s adult-use cannabis market is thriving, thanks in large part to tourism from neighboring states. With more states legalizing cannabis, it’s likely that the industry will continue to grow and evolve, potentially creating a major economic opportunity for the region. As the market continues to mature, it will be important for businesses and regulators to work together to ensure that the industry remains safe, transparent, and competitive.
