The National Drug Board (JND) and the Ministry of Tourism of Uruguay are studying the possibility that foreign visitors can access cannabis through the regulated market.
Tourists who visit the South American country seek to buy cannabis and, since they cannot do so legally, they end up buying on the black market. “I think it could be good for Uruguay to have an additional incentive for tourism,” Daniel Radio, secretary general of the JND, told El País.
Read more details about the cannabis market in Uruguay and when will tourists have access to legal cannabis with the Born2Invest mobile app. Find the most important economic news of the day with our companion app.
Tourists might be able to buy legal cannabis in Uruguay in the near future
Although it remains a matter of discussion, some possibilities have already been raised: to remove the requirement of being resident in Uruguay to register in the list of purchasers, the signature of a sworn declaration, as well as to increase the price of the cannabis package for foreigners.
In that sense, the example of Canada was cited, where the visitor is allowed to consume cannabis and its derivatives if he is of legal age, to carry and share up to 30 grams (legal limit) and to buy in authorized shops.
This business opportunity made some Canadian cannabis producers organize guided visits and tastings of the product, like the route of the warehouses.
Another example is the case of Colorado in the U.S.A. There, the tourist accedes to a registry during the time that remains in the region and can acquire several grams of cannabis.
Nevertheless, no matter how much support the proposal to sell cannabis to tourists in Uruguay obtains, the Chancellery (by the international treaties and the bond with the neighbors) and the Ministry of the Interior (by the impact in the public security) are key actors in the decision.
The Minister of the Interior, Jorge Larrañaga, said that the Police of Brazil had detected the entrance of Uruguayan cannabis to the illicit market of the country.
On the other hand, Liliam Kechichián, ex-minister of Tourism, declared that Uruguay will never have cannabis tourism, since, during her administration, she sought to “combat the use of drugs, instead of it being an element of promotion or that the cities are transformed into a sort of Amsterdam of the south.”
Nevertheless, according to data from the Institute for the Regulation and Control of Cannabis (Ircca), the law regulating cannabis has managed to snatch more than $22 million from drug trafficking in the last five years.
Some data about the cannabis market in Uruguay
The head of the JND assured that the consumption of cannabis is on an upward trend, both in Uruguay and in other regions. According to the official, when the market of cannabis is regulated, no alterations are generated. He pointed out that even between 2016 and 2018 there was a slowdown in the increase of consumption among the youngest.
“The maximum production allowed to the two companies that already have crops would not be enough to satisfy the more than 42,000 purchasers. Furthermore, of the three new production licenses that were granted, only one is well advanced.”
In this context, the two varieties of cannabis which can be acquired are indica and sativa, which contain between 7 and 9% of THC and which, in turn, count on a high level of CBD, which represents a challenge as regards the quality of the cannabis commercialized in Uruguay.
The consumer, as already said, must be an Uruguayan citizen of legal age and be registered, otherwise the activity would be illegal and could even mean jail.
In agreement with the Ircca, of the total of 45,067 consumers registered at the beginning of the last year, 34,696 buy cannabis in pharmacies, whereas 6,965 decide to cultivate it in their houses and the 3,406 remaining consumers belong to some of the 115 existing cannabis clubs in the country.
It is allowed to buy a maximum of 10 grams of cannabis per week and 40 per month. Normally, packages of 5 grams are sold that have a cost of around $7 (300 Uruguayan pesos).
Added to this, in the case of self-cultivation, related to the recreational use of cannabis, in Uruguay up to 6 plants per household are allowed and 99 in the case of cannabis clubs, which, in order to qualify as such, must have at least 15 members and a maximum of 45.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in NACION CANNABIS, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Magic vs. functional mushrooms? Rritual shows the path for fungal profits
Which mushrooms should you invest in? Psychedelic “magic” psilocybin mushrooms, or the growing functional mushroom phenomenon? With functional fungi like...
Cannava: the first medical cannabis laboratory is up and running
Cannava State Society, is a public company of the government of Jujuy, in charge of the implementation of the provincial...
The fintech sector in Peru advances at regional level
Ljubica Vodanovic, leader of the Financial Regulation and Fintech sector of EY Law Peru, pointed out that there are 151...
The three ways blockchain makes the supply chain more secure
One solution that small localized businesses apply to fulfil the constant need of preventing one’s business from any threat emerging...
Marsi Bionics open a round of €1.5 million to manufacture its exoskeletons
The Spanish company Marsi Bionics will use the funds to develop its pediatric products on an industrial scale and prepare...
Featured6 days ago
How are ESG company news deciphered with Artificial Intelligence
Business6 days ago
Four trends transforming the world of venture capital
Business7 days ago
Five easy ways to start an online business from home
Business5 days ago
Is having a financial contingency plan a smart business move?