Uruguay’s incoming Minister and Vice Minister of Tourism, Pablo Menoni and Ana Laura Caram, have shared their perspectives on the potential legalization of cannabis tourism in the country, a topic that has sparked considerable debate in recent years.
On January 17, Menoni addressed the possibility of expanding Uruguay’s cannabis industry to include tourists, following the recent transition of power to the left-wing Broad Front (Frente Amplio) coalition. He noted that there is “margin” for the exploration of cannabis tourism, though it would require discussions with various government departments. Caram emphasized the need for thorough consideration, acknowledging that the current legal framework would need to be reviewed.
Uruguay became the first Latin American country to legalize marijuana in 2013 under President José “Pepe” Mujica’s Broad Front government. The current law allows only those with “natural or legal citizenship or permanent residence” to legally purchase cannabis, which can be acquired through pharmacies, home cultivation, or cannabis clubs.
The cannabis sector has become an important part of Uruguay’s economy, with predictions estimating revenue from cannabis to reach $143.6 million by 2025, largely driven by medical cannabis sales. As the government transitions, some in the industry hope cannabis tourism will be legalized to open up additional revenue streams for businesses and the country.
Ongoing Debate Over Cannabis Tourism
The topic of cannabis tourism has been a subject of contention for years. Past ministers of tourism, both from the Broad Front and the coalition under President Luis Lacalle Pou, have either criticized or rejected the idea. In 2017, then-Minister Liliam Kechichián dismissed the notion of cannabis tourism in Uruguay, though by 2024, she expressed a more open stance, suggesting cannabis is one of many attractions Uruguay has to offer.
In 2022, Broad Front politician Eduardo Antonini proposed legislation to allow non-resident foreigners to purchase cannabis. However, then-Tourism Minister Tabaré Viera, from the Colorado Party, argued against cannabis becoming a “touristic product,” citing potential drawbacks, while acknowledging that providing visitors with the same rights as Uruguayans could be beneficial. Ultimately, the bill failed to pass.
The issue has resurfaced with the new government, with cannabis industry experts like Nicolás Morales, director of Indajaus, seeing potential opportunities in the legalization of cannabis tourism. Morales pointed out that legalizing tourism-related cannabis sales could lead to job creation and an influx of tourists eager to try the country’s cannabis products, much like wine tourism in other regions. He also emphasized the importance of regulating all sales channels, warning that limiting cannabis sales to pharmacies could drive tourists toward the black market for higher-quality products.
A New Era for Cannabis Companies?
With the return of the Broad Front government, industry insiders are cautiously optimistic about the legalization of cannabis tourism. Morales suggested that the coalition, which initially legalized cannabis consumption, may feel a responsibility to revisit the law that has seen little revision since its passage over a decade ago.
For companies like Green Hemp Uruguay, which primarily exports CBD-based products, the legalization of cannabis tourism could provide a new market for domestic sales. CEO Lorenzo Castaño Guigou explained that with the current regulatory constraints, local sales are not profitable due to high manufacturing costs. However, cannabis tourism could boost the local market by allowing companies like his to offer products within the country, ensuring a higher quality and safer experience for consumers.
Castaño also highlighted the potential economic benefits of cannabis tourism, suggesting it could extend Uruguay’s tourism season beyond the summer months and increase revenue for hotels, restaurants, and other businesses. He also emphasized the need for responsible consumption practices, such as designated areas where tourists could legally consume cannabis without disturbing others.
Uruguay’s Potential to Lead in Cannabis Tourism
Mónica Nicolás Lozano, CEO of BE GANJAH, which cultivates CBD flowers for export, believes that cannabis tourism could help diversify the industry. She explained that while Uruguay pioneered cannabis legalization, it has yet to fully capitalize on the sector’s economic potential. Legalizing cannabis tourism could stimulate the creation of recreational spaces for cannabis users, adding a new dimension to the country’s tourism offerings.
Uruguay’s cannabis industry has faced challenges, with several companies closing operations due to financial struggles. Reports suggest that cannabis exports from Uruguay have totaled less than $30 million since 2018, with just 750 people employed in the sector. However, Nicolás remains hopeful that cannabis tourism could help Uruguay position itself as a global leader in the sector, turning its early legalization into an economic advantage.
As the debate over cannabis tourism continues, the industry remains hopeful that the new government will move forward with reforms that could unlock significant economic benefits for Uruguay while establishing the country as a leader in cannabis tourism.
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