Mexico’s Cannabis Legalization and Potential Boom in Wellness Travel: What That Means for Investors
By Emily Paxhia, co-founder and managing partner of Poseidon. Mexico has long been a beloved tourist destination. Precovid was the seventh most visited country with 49 million tourists visiting each year. With the imminent legalization of cannabis now, Mexico is ready to appeal to even more travelers. Mexico is the third country to legalize recreational cannabis nationwide, and of these three countries, the overwhelming majority of cross-border tourists visit. For some visitors, Mexico has been reduced to cheap tequila shots and sombrero locations, but for many it is a center of art, fashion, beautiful architecture, and a great dining culture. In addition, Mexico has historically been popular with people who want to experience ancestral plant-based remedies to restore their body and mind. In the 1950s, Mexico began to see an influx of tourists tasting magic mushrooms in rituals aimed at bringing participants closer to nature, god, or their spirit. Much of that tourism was concentrated in the small town of Oaxaca. There, healer and former farmer Maria Sabina took it to Timothy Leary, John Lennon, Bob Dylan and others. However, the growing interest in adaptogen mushrooms such as shiitake mushrooms, chaga mushrooms, and ganoderma lucidum over the past few years has led the body to adapt to environmental and psychological stressors, strengthening the immune system, supporting sleep, and reducing inflammation. Is said to help. Now found in everything from skin care to smoothie powders, these mushrooms go well with cannabis and offer the opportunity to enjoy the benefits of these natural remedies without the side effects of psychedelics. Mexico has also seen a share of wellness travelers focusing on physical health rather than mental health. Before Tulum was known for its celebrity DJ sets and four-star hotels, it was a mellow paradise for yoga fanatics who began to flock to quiet towns in the 1990s and took their dogs down the coast. As the word of charm spread, Tulum changed with the population boom. The town had 2,000 inhabitants in 1990 and is now home to about 40,000. It’s no exaggeration to say that a well-performed cannabis-centric spa or yoga resort can have the same impact on countless other spots across the country. The legalization of Mexico, along with many challenges, presents interesting proposals for foreign investors. The country is vulnerable to changes in free trade agreements as it relies heavily on partnerships with the United States. In addition, some business units in Mexico are reserved for national citizens, and the economy is particularly vulnerable to fluctuations in oil prices. Infrastructure can be quite scarce, especially when it comes to transportation. Still, the potential for a profitable cannabis business is high. In an ideal situation, a foreign investor would partner with a local, knowledgeable team who understands how to navigate government regulations and leverage established networks. For example, companies like Landsteiner Scientific, a pharmaceutical research institute with a history of nearly 25 years, have the ability to manufacture and distribute health products and strong existing cannabis research departments. Less ideal is the concept that foreign investors start their businesses in the field with little knowledge of existing markets and insist that the country play according to their rules. For a new cannabis venture to truly thrive in Mexico, domestic and foreign investors should work together to demonstrate their strengths. Mexico is certainly more than a stunning beach, so legalization has changed the landscape of the largest urban areas, some of which embody the European atmosphere. Mexico City has 21 million inhabitants, a complex cultural history and more museums (arts, architecture, anthropology, history) than any other city in the world, with a thriving culinary and fashion scene. .. The streets are reminiscent of 19th-century buildings inspired by French, Spanish and Italian architecture and Milan with perfectly dressed women and men. The possibilities are endless. Is there a cannabis-focused tour of the gorgeous Xochimilco Canal in Mexico City? Luxury boutique in Colonia Rome, a city that sells handmade pipes? A hotel spa that offers CBD lotion and THC tincture in the minibar? Legalization offers the potential to create a rustic cannabis experience that blends in with Mexico’s deep historical traditions, such as Temazcal and cacao rituals. It’s a wise move from a tourism perspective, especially as more and more discerning wellness travelers crave a super-local and authentic experience unlike any other. The Mexican headset project is expected to have enormous economic benefits that the country’s legitimate sales market could be worth $ 840 million in the first year. In fact, the TAM (Total Addressable Market) is now four times as large as Canada and three times as large as the United States. This means that there have been significant changes in Mexico’s overall approach to tourism, which can attract wellness-focused travelers. Set trends and create organic topics. Related Links in Benziga: Mexico: Senate Delays in Cannabis Control | How Benzinga Mexico’s Legal Cannabis Market Affects Domestic and International Markets Cannabis and Mexico Opportunities | Benzinga Emily Paxhia is Poseidon’s Co-Founder and Co-Founder I am a managing partner. Emily has reviewed thousands of companies in the cannabis industry and has worked with countless founders in many positions. She helped founders prepare for marketing, develop market development strategies / product launches, and advise on day-to-day business operations. Emily is a board member of multiple portfolio companies and is an advisor to multiple teams. She is very active in investment decision making and ongoing investment oversight processes, working closely with partners to create meaningful trading structures and ensure proper governance at the corporate level. .. In addition, Emily has spent time and energy supporting policy groups and has served on the board of directors of marijuana policy projects. She is also currently a member of the CARE and The Initiative Athletes Committee. With over 10 years of experience as a consultant and researcher, Emily has become an expert in extracting practical insights from her research and applying them to make her function more efficient and successful. She also leverages this experience to engage in in-depth market analysis for product market suitability and potential scalability decisions. Emily graduated from New York University with a master’s degree in psychology in 2008. He graduated from Skidmore College with a bachelor’s degree in psychology in 2002. Photo: Long-term cannabis stocks to buy at Unsplash’s Roberto Carlos Roman market crash © 2021 Benginga.com. Benzinga does not provide investment advice. all rights reserved.