How Has The Cannabis Industry Effected Colorado's Economy?
When Colorado legalized recreational cannabis in 2014, many people were skeptical about the impact it would have on the state's economy. However, over the past several years, it has become clear that legalizing cannabis has had a significant positive impact on Colorado's economy. Here are some of the ways that Colorado's economy has grown since it legalized cannabis:
Increased Tax Revenue
One of the most obvious ways that legalizing cannabis has benefited Colorado's economy is through increased tax revenue. In 2020, Colorado collected over $387 million in cannabis tax revenue, which is a significant increase from the $67 million it collected in 2014. This revenue has been used to fund a variety of programs, including education, healthcare, and law enforcement.
Another way that legalizing cannabis has benefited Colorado's economy is by creating new jobs. According to a report from Leafly, the cannabis industry in Colorado employed over 34,000 people in 2020, which is more than the number of people employed in the state's coal mining industry. These jobs range from entry-level positions to highly skilled positions such as cultivation managers and extraction technicians. Additionally, the cannabis industry has provided job opportunities for people with criminal records, who may have difficulty finding employment in other industries.
Legalizing cannabis has also had a positive impact on Colorado's tourism industry. According to a report from the Colorado Tourism Office, 11% of visitors to the state in 2019 said that cannabis was a primary motivation for their visit, and 23% said that cannabis was a secondary motivation. This has led to an increase in hotel bookings, restaurant sales, and other tourism-related spending.
Finally, legalizing cannabis has had a positive impact on Colorado's real estate industry. In some areas, the demand for industrial properties for cannabis cultivation and processing has driven up prices and created a new market for commercial real estate. Additionally, some entrepreneurs have opened cannabis-friendly lodging and event spaces, which has also created opportunities for the real estate industry.