Earlier this week, Hawaii’s Cannabis Taskforce met again in the move forward toward possibly legalizing marijuana in Hawaii. The state has now projected that at least $50 million in tax revenue is possible through legalizing sales without a prescription. Others are certain that the state’s estimates are extraordinarily low. Hawaii has been looking at ways to be less tourist-dependent; could this be it?
This comes as the state’s research arm, UHERO recently said, “Hawaii’s economy is extraordinarily specialized in tourism, resulting in vulnerability to
external shocks and diminishing productivity growth. In response… policy-makers in Hawaii increasingly emphasize diversification.”
Currently, marijuana use in Hawaii is limited to those with a medical need. Dispensaries exist but are only allowed to sell to those with medical marijuana cards.
Green administration is pro-green.
There is a sense that if Josh Green is elected (a largely foregone conclusion), he will help move legalizing marijuana forward. He said recently, “I think that people already have moved past that culturally as a concern.” He’d like to see tax money from marijuana sales be invested in “our mental healthcare system for the good of all.” While supporting mental health is good, we are wondering if there are other places the money should be invested too, like affordable housing.
Alternative to Hawaii travel’s tax money?
Marijuana would have a long way to go in replacing Hawaii’s tourism taxes. The state says that in 2019, pre-Covid, for example, it collected $600 million in accommodation taxes alone.
Potential for Hawaii marijuana to be a premium agriculture crop replacement.
Hawaii’s earlier crops, such as pineapple and sugar cane, are long gone, and since they are not financially sustainable, they will not be returning. Premium agricultural products are hard to come by. But this one makes sense.
Iconic cultivars in Hawaii marijuana.
Do you remember names like Maui Wowie, Big Island’s Kona Gold, and Kauai Electric? These are world-famous cultivars that date back many decades.
Could the federal government allow the interstate sales of marijuana?
There’s no doubt that marijuana for visitors would be a huge business. That, however, pales in comparison with the national potential for Hawaii’s famous marijuana.
This summer, the cannabis industry was enlivened with the Cannabis Administration and Opportunity Act, now in committee. If passed, it would bring sweeping cannabis policy changes across the nation, including in Hawaii.
The act would remove marijuana from the federal Controlled Substances Act and shift regulation from the DEA to the Alcohol and Tobacco Tax and Trade Bureau and the FDA. The bill also calls for a federal excise tax of 5% to 25% on marijuana.
Currently, marijuana is legal in 19 states plus D.C, while medical marijuana is legal in 37 states, including Hawaii.
It is anticipated that big companies, including the likes of Amazon and the tobacco giants, will jump into the industry.
What’s next for Hawaii’s marijuana industry?
The state says it’s still gathering information to report back to legislators. The public will also have the opportunity to chime in and testify. Hawaii’s fledgling marijuana industry hopes that Hawaii will be next to adopt full legalization.
Global cannabis tourism and Hawaii.
It’s been reported that cannabis use rose during Covid and thereafter. And perceptions about the drug’s harmfulness have certainly changed. Along with that, there has been expanded cannabis tourism.
Travel marketing analysis by MMGY said that 29% of leisure travelers are interested in cannabis tourism. Take a look at marijuana tourism-focused Amsterdam as an example. The government there reported that 58% of international visitors choose the city for that purpose. They also said that the infamous “coffee shop” businesses have increased since Covid.
Other places, like Illinois or as far away as Thailand, believe that legal cannabis has boosted their tourism industries.
Hawaii has the opportunity, if it chooses, to augment its tourism industry and create unique, Hawaii-branded cannabis, CBD, and hemp products related to the iconic Hawaii experience. There is undoubtedly enormous economic potential associated with both Hawaii cannabis tourism and Hawaii cannabis products.
Could Hawaii be the next Amsterdam?
Hawaii cannabis agri-tourism also has the potential for farm visits and even cannabis festivals. Instead of bed and breakfast, what about bud and breakfast?
Get Breaking Hawaii Travel News
Pot Heads Unite! Hawaii legalizing pot for recreational use will just encourage more problems among the tourists. It will also encourage the use of other drugs despite what some may say,it has been proven to be a gateway drug. Next problem with pot, Hawaii won’t allow smoking in public, toking included. Hawaii will consider doing this as a New Income Stream from Taxes, more money to misuse!
There’s already wide spread use of recreational Marijuana by tourist on the islands, so why not legalize sales to 21 and older to cash in on some tax revenue. For over 45 years I’ve been a recreational user of Marijuana most of use bring our own without issue.
By the way legalizing it will not spike demand there’s so much of it on the black market those that want to smoke are already smoking it.
One other thing the topic by most vacationers on Hawaii has moved from marijuana use to Psilocybin mushrooms otherwise known as psychedelics. Last October over heard several conversations by 30 to 40 year old tourist who brought psychedelics with them on vacation.
This is a terrible idea!!! To replace tourists with druggies is never a good idea.
Cannabis has been common in Hawai’i as in many countries for generations – go ask your grandparents. Legalizing recreational cannabis doesn’t create a huge shift in usage, just in the way that it is sold. Some people have fears about increases in DUIs and workplace accidents, but this has not been the case in places where recreational cannabis has been legalized (like CA, OR, WA, and CO). A small spike in usage happens immediately after legalization as curious people try it for the first time, then sales settle. Investors see such economic potential in licensed cannabis farming and dispensaries that Oregon has an oversupply, and prices have dropped significantly. This is an effective disincentive to criminal sellers, so crime drops.
Half of Colorado wants to become a separate State, that’s the half that has most of the States Businesses. Insurers will not pay claims for injuries while using any Illicit Drugs which Cannabis is. None of my Grandparents used drugs, the fact that someone else’s did explains a lot. For a while I did, eventually I grew up when childhood was over. No Business has to hire a person that uses any type of drug, even if the State and/or Fed decriminilized it.
So is alcohol. The legal addictive drug that has the most devastating health and socioeconomic impact of all drugs known to mankind because of its mass production, availability and magnitude of consumption.
I’ve noticed politicians always point to perceived benefits of imposing a new tax, or in this case legalizing something so it can be taxed. Here in California, years go there was a huge push to add $1.00 tax per pack on cigarettes. It was called a “sin tax” and the tax revenue was to be used for child health care. California also legalized marijuana by promising special projects to be funded by tax revenue. (BTW, taxes & fees imposed on Gas are $1.18 per gallon in California)
It has been said that politicians have never met a tax they didn’t like. Where that money goes is anyone’s guess. One thing is for sure, taxing pot heads will not make up for the drop in tourism revenue after Hawaii starts penalizing tourists.
Wait, I thought HI wanted to slow tourism… Now you want to use it as an excuse to legalize marijuana?
I foresee a huge increase in motor vehicle accidents. We’ve seen it here in the Northeast, tons more impaired drivers with very little tools for Law Enforcement to use to prove impairment after an accident. Unlike alcohol there is no measurement of “over the line” for THC, so impairment is based on witness and judgement. Given the driving conditions around in many areas of HI, this will be a real issue for you. And if you have any thoughts that new employees are tough to deal with, wait until legal weed is their primary after and before work go-to”.
Free money is hardly free, there are tax dollars that are not worth the negatives.
Newsflash, everyone is already smoking pakalolo. It’s only going to change the way they’re getting it and allow the state to benefit from the tax revenue.
Wait… I thought Hawaii wanted to lessen tourism. Would this just increase the interest in coming to Hawaii?
Please no!
As a fairly frequent visitor to the US, my family & I are very much against this.
We all have our own reasons / opinions for & against and I won’t go into the politicised ones but as a family I am really disturbed by how often we are ‘forced’ to inhale cannabis as a second hand smoke.
We had this on the streets of Portland & Seattle a few years back & again in Massachusetts last month where it seemed every 30 minutes we would be consumed by the overwhelming smell of weed.
To do this outlet as a reason for tourism would be even worse and against everything the Islands stand for.
We love Hawaii and when we come back next year want to smell the smell fresh air, sea breeze, the fauna & wonderful local food.
England, UK
Cannabis consumers deserve and demand equal rights and protections under our laws that are currently afforded to the drinkers of far more dangerous and deadly, yet perfectly legal, widely accepted, endlessly advertised and even glorified as an All-American pastime, alcohol.
Plain and simple!
Legalize Nationwide Federally Now!
Mmm in your own house and yard maybe, not on the streets and whilst driving which is where I always seem to be seeing/smelling it
The “War on Cannabis” has been a complete and utter failure. It is the largest component of the broader yet equally unsuccessful “War on Drugs” that has cost our country over a trillion dollars.
Instead of The United States wasting Billions upon Billions more of our yearly tax dollars fighting a never ending “War on Cannabis”, lets generate Billions of dollars, and improve the deficit instead. Especially now, due to Covid-19. It’s a no brainer.
Cannabis is much safer to consume than alcohol. Yet do we lock people up for choosing to drink?
Let’s end this hypocrisy now!
The government should never attempt to legislate morality by creating victim-less cannabis “crimes” because it simply does not work and costs the taxpayers a fortune.
Cannabis Legalization Nationwide is an inevitable reality that’s approaching much sooner than prohibitionists think and there is nothing they can do to stop it!
Legalize Nationwide! Support Each and Every Cannabis Legalization Initiative!
As a healthcare professional I just need to say the cannibus of today is about 25% THC vs the 3-5% of the 80s.
Using a vape pen can increase up to 90%. THC induced diseases including psychosis are up to 37 per day in 1 San Diago hospital.There are 20 THC related psychosis diagnoses for every 1 amphetamine one.We have been told Marijuana is safe because it is natural..so is tobacco. cnn.com/cnn/2022/06/27/health/marijuana-emergencies-hospitalization-study-wellness/index.html
Bad link… 🙁
try this one
amp.cnn.com/cnn/2022/06/27/health/marijuana-emergencies-hospitalization-study-wellness/index.html
For they realise how much the fields of growing cannabis smell
It really is awful. I’ve experienced this in California.
I am not 100% sure about this being a good idea. You quote Amsterdam, yet Amsterdam has introduced laws banning foreign visitors from some coffee shops to foreign visitors due to problems caused. We also have more and more cases of poor behavior on planes to and from Hawaii ne. For all its good benefits Cannabis can provoke paranoia and delusions.
At the end of the day, legalizing Cannabis use brings all the same issues we face with Alcohol. I think my biggest worry is it would be seen by some as opening the door to encouraging the legalization of all drug use. Hawaii already has a lot of drug related problems particularly on Oahu, notably amongst the young with petty crime. This issue has two sides, good and bad.
A lot of the meth problems began once Green Harvest started cracking down on pakalolo farmers.
“tax money from marijuana sales [to] be invested in ‘our mental healthcare system’”
Great, that will make a dent on the expenses from the news psychosis cases and emergency room visits.
Hawaii…the Beautiful Garden State is turning into a West Coast cesspool. Once you legalize marijuana, everything else will fall like a deck of cards. You think you have homeless issues now, you haven’t seen anything yet. Wait til you legalize marijuana. It’s a slippery slope to crack, and now fentanyl killing our youth. Apparently, Hawaii doesn’t care about its youth or their future. Sadly, for every dollar in revenue you take in from the sale of marijuana, you will spend $4 to $5 taking care of the social ills related to marijuana. Just doesn’t make sense. Data is from the latest State of Colorado Study on the effects of legalizing marijuana. But heh, it’s your body; your choice. Right? Call me stupid.
Hawaii is so beautiful and doesn’t need to endorse getting high just to make a buck. Seen enough drug use heart breaking homeless in Ewa Beach😔Get high off the beauty! This makes no sense as no matter how much tax money this state gets doesn’t bless the children and schools like it should! These schools should and could set the pace for the nation if managed right and from the right sources! Focus on what’s best and not the quick buck. Greedy has its consequences.
Illegal cannabis use in Hawaii has been around for decades and based on experiences from the states that had legalized it, it hasn’t contributed to any of the adverse effects you fear. Drug use among homeless and others that is a true danger to community safety is not weed, but meth and heroin. Those are the drugs the drive the crime rates up and are the true danger to community health and safety. Even legal alcohol is responsible for more adverse health issues, crime and accidents than weed. It is time to stop vilifying the plant. Even federal government has finally realized that.
Well said!
Alcohol which is easily available from walmart to your local mom and pops store has far more dangerous consequences than marijuana. Alcohol has killed far more people be it low judgement due to intoxication causing accidents or physiologically causing liver disease and a plethora of other major diseases that caused more in health insurance.
You surely hit the nail on the head! Plus, if Hawaii doesn’t mind competing with Mexico, they will be just fine.
Enough is enough with pot. It makes people stupid, slow and lazy. You have problems with staffing in restaurants, hotels and small businesses. Now just what you need, a stoned receptionist!. There goes the sweet smell of native flowers, now it pot. Just what we need.
I say legalize cannabis and ban alcohol. The latter is one of the most dangerous drugs available legally. The former, other, than it’s ungodly stench, is mostly innocuous.
Hi Rob+Jeff. I am not in favor of legalized marijuana use. We have enough impaired motorists on the roads without adding “high” people to the equation. It’s sad that people feel the “need” to get high. What has happened to “sober living”. Is it so hard to experience the Islands in a natural state of mind? No wonder this world is in the state it is in. Everyone has to “escape mentally” to “enjoy life”. How Sad!!! The world is getting weaker instead of getting stronger and healthier. What do you both think? Mahalo for your great reports.
Wow!! Seems that those in power will sell there souls for the almighty $$$
Aloha Rob and Jeff,
Thank you for another fascinating article.
We live in Washington State, where recreational cannabis is legal, and have a place on Maui. I truly see no adverse effects from legalization. It appears to me cannabis is quite easy to get on Maui, walk around, you smell it everywhere. A Medical Marijuana license avaialanle to those in pain. My friend happened to be in a medical shop and a visitor from another state walked in, thinking cannabis is legal, you know like at home.
Anyway, Hawaii needs jobs, Hawaii needs money. Legalize cannabis.
Please don’t bash me, if you don’t like my opinion, please scroll past.
Thank you again.
Lani
Hi Lani.
Thanks for checking in on this and so many other subjects. We appreciate it.
Aloha.
Look at the issue in Washington state. You don’t think all the crime and the people who did it weren’t stoned? Just what Hawaii needs. More stoned people.
I respectfully suggest that you have your facts mixed up. I live in WA and also on Maui. I am a medical professional and I work in ERs in both states. The crime you speak of is overwhelmingly related to methamphetamine and opiate use, and predates cannabis legalization in WA by years. The vast majority of injuries from vehicular crashes and interpersonal violence are associated with alcohol and methamphetamine use. Someone stoned on weed mat not be much fun to have a conversation with, but they’re generally relaxed, pleasant and innocuous. Weed is not the villain.
Living in a cannabis legal state, I would urge all Hawaiian voters to think this through carefully. Legalization brings more problems than benefits and the projected tax revenues are overstated as taxed cannabis is more expensive than gray market weed. The sales projections through legal channels are being overstated as they ignore the sales through non taxable transactions.
Be careful what you wish for.
You are spot on Matt! I also live in a cannabis legal state and see the effects firsthand. Just because alcohol is legal and has bad, deadly effects doesn’t justify promoting and encouraging marijuana and it’s negatives. As he said, be careful what you wish for
Great. Instead of being offered pakalolo as I wander past the Royal Hawaiian Center, I’ll get hit with the offers as soon as I step off the plane at HNL.
At least stoners should be peaceful tourists.