When a new market emerges, it’s common to witness winners and losers. The losers often include businesses accustomed to operating in traditional ways until a disruptive force introduces a fresh, more convenient approach that gains rapid popularity. Yet, not every emerging market replaces something older.
Sometimes There Are Winners and Winners
Many times, there are new markets that add more benefits without affecting any existing business negatively. That’s been the case with the legalization of cannabis in Colorado. Many small towns in the Rocky Mountain state are seeing an economic boom thanks to dispensaries located in their jurisdictions.
This surge manifests through increased tax revenues, a spike in sales, both direct and indirect business growth, an increase in the travel and tourism sector, elevated activity in lodging and food industries, and an overall uptick in economic traffic. Consequently, these small towns now face a significant challenge: scaling up to meet the heightened demand and increased activity.
A Big Shift From Park Tourism
Tourism centered around parks has long been a thriving industry. Several small Colorado towns strategically positioned along the main routes of national parks and monuments have managed to sustain themselves due to the steady flow of visitors. However, substantial growth has typically been limited unless a significant investor introduced a hotel resort in the area. Yet, not everyone welcomes this idea as it might detract from the cherished small-town ambiance many people value in rural America.
Dispensaries, on the other hand, have had a very different impact. They take up a small footprint, but the traffic they bring economically has benefited everyone in small towns, from the creation of jobs to more traffic and sales income.
Of course, the initial reaction of many small-town residents tends to be apprehension, but over time, folks tend to realize that dispensary traffic is a good thing for everyone involved. Moreover, these customers aren’t dubious characters; they’re regular individuals with solid backgrounds and incomes, eager to invest their money in small towns they might have previously overlooked. So, a dispensary’s economic change repeatedly pays for itself with residents.
Mountain Annie’s Cannabis Ridgway dispensary is a great example. In a town of just over 1,200, the business is integrated smoothly and brings in regular income for all involved. It also attracts tourism and traffic for other local companies as well. Small-town economics are a shared environment; the more that one draws to their circle, the more everyone benefits.