A new study that explores the impacts of the legalization of marijuana for the use of adults in the hotel industry finds that “hotel revenues increase by 25.2% (or $ 63,671 monthly) due to dispensary legalization, and the effect continues to grow even six years after legalization.”

The research article, published in the magazine Production Operations and Management (POMS), extracts its inferences from a Colorado data review, which the authors, according to the authors, saw “an increase of 7.9% in the night reserves of the room and an increase of 16.0% in the daily rates of the room”, although the impacts varied according to several factors.

“These findings are relevant to marketing professionals, operations management, hospitality, tourism and public policies,” says the study, noting that the “rapid expansion of the marijuana business presents opportunities and challenges for the hotel industry.”

“On the one hand, recreational marijuana dispensaries could become attractions that attract travelers to visit places that would not otherwise explore. For example, about 12% of tourists from us have reported positive experiences with marijuana related to trips … Commerce report (OEDIT 2019), which found that about 10% of the LEISURE TRAVELERS OF THE EE. desirable due to recreational marijuana. “

In spite of the apparently polarized feelings around traveling to jurisdictions where marijuana is legal, the study found that hotels seemed to work better after policy change.

A new study that explores the impacts of the legalization of marijuana for the use of adults in the hotel industry finds that “hotel revenues increase by 25.2% (or $ 63,671 monthly) due to dispensary legalization, and the effect continues to grow even six years after legalization.”

The research article, published in the magazine Production Operations and Management (POMS), extracts its inferences from a Colorado data review, which the authors, according to the authors, saw “an increase of 7.9% in the night reserves of the room and an increase of 16.0% in the daily rates of the room”, although the impacts varied according to several factors.

“These findings are relevant to marketing professionals, operations management, hospitality, tourism and public policies,” says the study, noting that the “rapid expansion of the marijuana business presents opportunities and challenges for the hotel industry.”

“On the one hand, recreational marijuana dispensaries could become attractions that attract travelers to visit places that would not otherwise explore. For example, about 12% of tourists from us have reported positive experiences with marijuana related to trips … Commerce report (OEDIT 2019), which found that about 10% of the LEISURE TRAVELERS OF THE EE. desirable due to recreational marijuana. “

In spite of the apparently polarized feelings around traveling to jurisdictions where marijuana is legal, the study found that hotels seemed to work better after policy change.

When comparing hotels in Colorado with hotels in New Mexico, where cannabis was illegal during the study period, the equipment analysis found that “on average, the monthly hotel revenues increase by 25.2% after the legalization of recreational marijuana dispensaries, which is equivalent to a substantial increase of $ 63,67 per hotel.”

“However, hotels do not benefit equally,” says the report. “Hotels that are closer to retail dispensaries have been operating for shorter periods and belong to a higher class, obtain more positive effects. The type of location also plays a crucial role, with hotels in the resort areas that benefit more from the legalization of retail dispensary, followed by those in urban, airport, suburban, interstate and small locations.”

In addition, “chain hotels operated by corporate entities experience more positive treatment effects than franchisee and operated chain hotels independently,” adds the document.

A new study that explores the impacts of the legalization of marijuana for the use of adults in the hotel industry finds that “hotel revenues increase by 25.2% (or $ 63,671 monthly) due to dispensary legalization, and the effect continues to grow even six years after legalization.”

The research article, published in the magazine Production Operations and Management (POMS), extracts its inferences from a Colorado data review, which the authors, according to the authors, saw “an increase of 7.9% in the night reserves of the room and an increase of 16.0% in the daily rates of the room”, although the impacts varied according to several factors.

“These findings are relevant to marketing professionals, operations management, hospitality, tourism and public policies,” says the study, noting that the “rapid expansion of the marijuana business presents opportunities and challenges for the hotel industry.”

“On the one hand, recreational marijuana dispensaries could become attractions that attract travelers to visit places that would not otherwise explore. For example, about 12% of tourists from us have reported positive experiences with marijuana related to trips … Commerce report (OEDIT 2019), which found that about 10% of the LEISURE TRAVELERS OF THE EE. desirable due to recreational marijuana. “

In spite of the apparently polarized feelings around traveling to jurisdictions where marijuana is legal, the study found that hotels seemed to work better after policy change.

When comparing hotels in Colorado with hotels in New Mexico, where cannabis was illegal during the study period, the equipment analysis found that “on average, the monthly hotel revenues increase by 25.2% after the legalization of recreational marijuana dispensaries, which is equivalent to a substantial increase of $ 63,67 per hotel.”

“However, hotels do not benefit equally,” says the report. “Hotels that are closer to retail dispensaries have been operating for shorter periods and belong to a higher class, obtain more positive effects. The type of location also plays a crucial role, with hotels in the resort areas that benefit more from the legalization of retail dispensary, followed by those in urban, airport, suburban, interstate and small locations.”

In addition, “chain hotels operated by corporate entities experience more positive treatment effects than franchisee and operated chain hotels independently,” adds the document.

The researchers, from the University of Florida Central, Virginia Tech and the University of North Carolina in Chapel Hill, also concluded that “the positive effect on the hotel revenue is strengthened over time, does not show signs of deceleration six years after the legalization of recreational marijuana throughout the state.”

For hoteliers, thereportHe says: “The positive and growing treatment effects on hotel revenues highlight the possible long -term economic advantages of recreational marijuana”, although it warns that “legalization does not guarantee financial gains.”

For policy formulators, the study continues, the findings underline the economic benefits and the “positive effects of indirect in hotels when preparing regulations, ensuring that zoning laws promote synergy between dispensaries and hotels.”

“The city planners could strategically place dispensaries in the areas of Resort, Urbano and Airport, where its presence provides the greatest benefits for hospitality companies,” the study suggests. “They can also consider tax incentives or support programs to help lower and independent class hotels to capitalize on marijuana tourism opportunities.”

A separate The 2020 study also found that the Hotel room rentals of Colorado increased considerably after the State began the legal sales of marijuana. This study also found that the state of Washington saw increases in tourism after legalization, although the effect there was more modest.

When comparing hotel room rentals in Colorado and Washington with states that did not change their legal marijuana status from 2011 to 2015, they discovered that legalization coincided with a significant influx of tourists and an increase in hotels’ income. The impact was even more pronounced after the start of retail sales.

Last year, meanwhile, the Illinois governor said that travelers from nearby states were specifically visiting legal cannabis.

“People from Indiana, people from Iowa, people from Wisconsin, Kentucky, crossed the border and buy something in a dispensary in Illinois. Now, they are not supposed to return by the border to their national states, so I suppose they are only staying in Illinois,” said Governor JB Pritzker (D) at the time.

Last September, however, a report by the Colorado Legislative analysts said that part of the reason why the State is seeing the decrease in cannabis tax revenues is due to “The fall in demand as other states throughout the country legalize marijuana “, making sales of” less pronounced “cannabis tourism.

“Marijuana prices fell as pandemic -induced demand decreased, marijuana tourism became less pronounced and measured as the market matured,” said that report. “The fiscal income of marijuana is falling in most states where recreational marijuana is legal due to the decrease in demand after pandemic, but states that it legalized early marijuana, such as Colorado, Washington and Oregon, they are seeing the greatest decreases in sales.”

Written by I am Adlin For the moment of marijuana | Outstanding image of Gina Coleman/Weed maps

The post The hotels see a significant impulse in income after the legalization of marijuana, shows a new study first appeared in Mapache news.