Benzinga
The legalization of cannabis in Mexico and the potential boom in wellness travel: what it means for investors
By Emily Paxhia, co-founder and managing partner of Poseidon. Mexico has long been a beloved tourist destination; before Covid, it was the 7th most visited country, with 49 million travelers visiting it annually. Now, with the impending legalization of cannabis, Mexico is poised to pique the interest of even more travelers. Mexico is the third country to legalize cannabis at national level, and of the three, it is the country with by far the most tourists crossing its borders. For some visitors, Mexico has been reduced to a place for cheap tequila recordings and sombreros, but for many it is a cultural hub with art, fashion, beautiful architecture and incredible cuisine. Furthermore, Mexico has historically been popular among those who want to experience ancestral plant-based therapies to restore their bodies and minds. In the 1950s, Mexico began to see an influx of tourists tasting magic mushrooms in rituals intended to bring participants closer to nature, God, or their own psyches. Most of the tourism was a small town in Oaxaca, where a healer and former farmer named Maria Sabina administered doses such as Timothy Leary, John Lennon and Bob Dylan. But the increase in interest in adaptogenic mushrooms, such as shiitake, chaga and reishi, has claimed in recent years that it would help the body adapt to environmental and psychological stressors, strengthen the immune system, support sleep and reduce inflammation. reduce. These mushrooms are now seen in everything from skin care to smoothie powder, and are good with marijuana and offer the chance to reap the benefits of these natural remedies without the psychedelic side effects. Mexico has also seen its share of wellness travelers focus on physical rather than mental fitness. Before Tulum was known for famous DJ sets and four-star hotels, it was a gentle haven for yoga fanatics who began flocking to the tranquil city in the 1990s to drop off along the beach. As its charm spread, Tulum underwent a transformation, along with a population boom; the town had 2,000 inhabitants in 1990 and today has about 40,000 inhabitants. It is not a piece of cake to say that well-run cannabis-centered spas and yoga resorts can have the same effect in numerous other places in the country. The legalization of Mexico offers an interesting proposal for foreign investors, as well as numerous challenges. The country relies heavily on its partnership with the United States and is therefore vulnerable to any changes to the free trade agreement. In addition, some business sectors in Mexico are reserved for the citizens of the country, and the economy is particularly vulnerable to fluctuations in oil prices. The infrastructure can be particularly lacking, especially when it comes to transportation. Yet the potential for a profitable marijuana business is huge. In an ideal situation, foreign investors will work with local expert teams that understand how to navigate government regulations and utilize their established networks. For example, a company like Landsteiner Scientific, a nearly 25-year-old pharmaceutical laboratory, has the capability to manufacture and distribute health products and a strong existing research arm for cannabis. Less ideal is the concept of foreign investors starting operations on the ground with little knowledge of the existing market and insisting that the country should play by their rules. For new cannabis businesses to really thrive in Mexico, domestic and foreign investors will do well to work together and magnify each other’s strengths. As Mexico is much more than its incredible beaches, we will also see that legalization is changing the landscape of its largest urban areas, some of which have a European feel. With 21 million inhabitants, Mexico City has a complex cultural history and more museums (art, architectural, anthropological and historical) than any other city in the world, as well as thriving culinary and fashion scenes. The streets are reminiscent of Milan with its 19th-century buildings inspired by French, Spanish and Italian architecture and immaculately dressed women and men in suits. The possibilities are endless. Will there be tours focusing on cannabis through the beautiful Xochimilco canals in Mexico City? High-quality boutiques in the city of Colonia Roma selling handmade pipes? Hotel spas offering downtown lotions and THC tinctures in the minibar? Legalization offers the opportunity to create rustic cannabis experiences that are in keeping with the deep historical traditions of Mexico, such as Temazcal Rituals or cocoa ceremonies. This is a wise move from a tourism perspective, especially as increasingly discerning wellness travelers crave hyper-local and authentic experiences they will not find anywhere else. Enormous financial gains are imminent for Mexico Headset projects that could bring the country’s legal sales market to $ 840 million in the first year. In fact, the TAM (Total Addressable Market) is now four times larger than that of Canada and three times that of the US. This all means that we are likely to see tremendous changes in Mexico’s approach to tourism in general and attract the wealthy travelers who set trends and create organic buzz. Benzinga’s Related Links: Mexico: Senate Cannabis Regulation Delayed | Benzinga How Mexico’s Legitimate Cannabis Market Affects Local and International Cannabis Markets and the Chance of Mexico Benzinga Emily Paxhia is a co – founder and managing partner of Poseidon. Emily has reviewed thousands of companies in the cannabis industry and has worked with numerous founders in many capacities. She helped shape the founding preparations for founders, their strategies / product launches for the market, and provided advice on day-to-day business operations. Emily has held board seats for various portfolio companies and participates as an advisor to various teams. She is very active in investment decision making and ongoing investment oversight processes and works closely with her partners to create meaningful transaction structures, to ensure proper management is carried out at enterprise level. Furthermore, Emily spent time and energy supporting policy groups and served on the Board of Directors of the Marijuana Policy Project. She also currently serves on the board of athletes for CARE and The Initiative. Emily has more than ten years of experience as a consultant and researcher, and as such she has become an expert in extracting and applying appropriate insights from research to enable corporations to operate more efficiently and successfully. She also uses this experience to do detailed market analysis to determine the fit of the product and the possible scalability. Emily graduated from New York University with an MA in Psychology in 2008. She graduated from Skidmore College in 2002 with a BA in Psychology. Photo by Roberto Carlos Roman on Unsplash See more from Benzinga Click here for options on Benzinga adaptation to survive in the cannabis sector3 Long-term cannabis stocks for sale in a market crash © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.