Uruguay to Start Selling MJ to Tourists
Uruguay, the first country in the world to legalize recreational MJ, is planning to allow local businesses to sell cannabis to tourists. The goal is to increase entrepreneurs’ income and bring additional revenue to the state budget through higher tax collections.
MJ Will Cost More for Foreigners
Due to the COVID-19 pandemic, Uruguay’s government closed its borders, but plans to lift the entry ban for foreign citizens vaccinated against COVID-19 on November 1. As a result, a surge of tourists from Argentina, Brazil, and other countries in South and North America is expected during the holiday season from December to February. Officials hope to boost the treasury by selling cannabis to visitors. The administration of President Luis Alberto Lacalle announced that in 2021, the president would introduce a bill to regulate MJ sales to foreigners.
Deputy Minister of Tourism Remo Monzeglio suggested selling MJ to foreign guests at higher prices and using the proceeds to fund programs for the treatment and rehabilitation of people with drug addictions. According to Remo, the government’s plan is not to turn Uruguay into a tourist Mecca for MJ enthusiasts, but to reduce the volume of black market MJ sales.
The Cannabis Industry Has Not Met Expectations
Experts predicted that Uruguay’s 2013 legalization law would eliminate underground dealers and earn the country billions of dollars from MJ. However, eight years later, illegal cannabis trade still thrives, and revenue from exporting cannabinoid products amounted to only $7.5 million last year.
The situation is worsened by increased competition in the international cannabis market. For example, in July 2021, Colombia legalized cannabis exports and promised to offer low prices thanks to a production cost of just $0.06 per gram.
Developing the Domestic Market
As a result, Uruguay is focusing on developing its domestic market. According to the law, adult citizens must register to gain the right to grow cannabis, join a cannabis club, and purchase up to 40 grams of MJ per month. Authorities are proposing to allow tourists to register for access to MJ as well.
“Government” cannabis is not in high demand among locals, as only 50,659 people are registered in the database, while the total number of MJ users is estimated at 3 million. As a result, licensed sellers account for no more than 11% of the recreational cannabis market.