Tapping Into Cannabis Island Tourism with the US Virgin Islands
Of all the upcoming markets, perhaps none have us more excited than the U.S. Virgin Islands. Not only is it because of the phenomenal location and general beauty of the islands (can we please have a Canna Advisors office on Saint John?) but because of the immense potential to be found here. This is specifically the case as it relates to cannabis island tourism. Here we’ll break down how you can tap into cannabis island tourism and prepare for the fast approaching licensing opportunities.
The Rise of Cannabis Tourism
Cannabis tourism has been increasing steadily over the last few years, with Grand View Research estimating that in 2023 cannabis tourism had a market size of over $10 billion, growing 12.3% from the year previously. Individual states like Michigan have seen tremendous tourism growth thanks to their thriving cannabis markets, 2023 showing a 15.7% growth in the cannabis market in the state, driven in no small part by out of state tourism.
This leads us to the islands, which as one of the only legal places in the Caribbean without having to worry about a passport for entry could have a thriving cannabis market. Tourism in general is the largest industry in the USVI. Tourism is on the rise for the islands, with 2024 welcoming over 1 million visitors, the second time this milestone has been achieved. Additionally, 2023 saw over $343 million in tourism revenue. We believe the USVI can serve as a perfect location for a thriving, legal cannabis market as cannabis tourism increases and general interest in visiting the islands also increases.
Benefits and Disadvantages with the Islands
Of course this isn’t all just roses. We want to look at every marketplace with a critical lens as no state or territory is perfect for operations. There’s logistical challenges with living and operating on an island, such as size restrictions and limited pools of qualified individuals to hire for operations. There’s also the weather to consider, which, while usually is exemplary, can prove disastrous should a hurricane come in—a higher risk for crop failures or destruction which could cause supply chain issues. And there is the unlikely but, as we now know possible, scenario of the tourism industry completely collapsing after, say, a global pandemic.
Still, the benefits with the USVI themselves outweigh these risks. First, there’s a limited number of licenses being issued, meaning that the islands won’t become overwhelmed with operators and saturate the market. Second, this is a merit-based license award process which means that only qualified and well-positioned applicants will be able to enter the market, reducing the risks of a business operation imploding before its even begun. And third, in case we didn’t drive this point home already enough, the potential for profit is there and is plenty strong thanks to the economic trends we’ve been seeing.
What You Can Do and How Canna Advisors Can Help
But what all can you be doing now if you want to get into the USVI and tap into this cannabis tourism boom? When in doubt, start small. We always recommend at least an hourly consultation with cannabis industry experts to assess your strengths, weaknesses, and what your blind spots may be prior to submitting an application. You can also look at financial modeling and business planning, ideal if you’re looking to impress investors, to show the viability and research put into your business. And finally, you can launch a license pursuit itself, starting the process to buildout your team and meet regulatory requirements to secure this limited, merit-based license before others submit ahead of you.
At Canna Advisors, we excel at each of these above-mentioned steps. Not only do we offer hourly consultations to get your questions answered, but we can guide you through the entire licensing process as well as becoming operational. Unlike other state or territory focused attorneys or independent operators, we have experience across over two dozen different markets and over multiple different types of application processes. You can rest assured that working with Canna Advisors would be a step towards success for your prospective cannabis business.