ATLANTIC CITY — Weed-motivated tourists want more than marijuana, Brian Applegarth said during a panel discussion Thursday.
They want something to do after they drink.
The California-based founder of the Cannabis Travel Association spoke at “Destination Cannabis: Spotlight on Atlantic City,” a webinar presented by the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University’s School of Business and Stockton’s Cannabis and Hemp Research Initiative.
This was the fourth year for the conference, which began before the first legal cannabis sales in New Jersey.
Rob Mejia, a teaching specialist in the school’s cannabis studies program, led the discussion, which included Christina Casile, CEO and owner of Design 710 in Atlantic City, and John Kohn, founder and CEO of Agri-Kind Brands in Chester , Pennsylvania, who is involved in several high-profile cannabis projects in Atlantic City.
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Applegarth, who monitors cannabis travel trends, told the group that one recent trend is to include cannabis as a precursor to other events, such as before a meal, concert or museum visit.
“We look at cannabis as the new vermouth, as a precursor to a Michelin-starred dish,” Applegarth said.
Legal weed remains a relatively new development in New Jersey, with the first legal off-market sales of medical marijuana occurring nearly two years ago.
Legal Distribution will open at 3112 Atlantic Avenue, just blocks from the Stockton University campus and minutes from downtown Atlantic City.
There are now more than 100 licensed dispensaries in New Jersey, and a third adult store opened this week in Atlantic City. California first allowed medical use almost 30 years ago and voted to allow recreational sales in 2016, a few years after Colorado’s 2012 legalization referendum.
Cannabis in California is now a billion-dollar-a-year industry.
Applegarth talked about cannabis lounges, suggesting they could provide patrons with a variety of experiences, including music and other entertainment.
That’s the plan for High Rollers LLC, a dispensary and parlour, being built at the Claridge Hotel, with plans to become the region’s first parlour. The owners want to open by April 20.
Cohn said the investors put about $4 million into renovating the space. There are strict rules for saloons in New Jersey that prevent the sale of any food or drink. Cohn said High Rollers is putting on a full bar anyway, initially handing out soda and setting up kiosks where patrons can order food directly from Claridge’s room service.
State rules also say the salon must be affiliated with a dispensary. Cohn said plans are to provide a separate entrance and potentially rent out the space for private events.
Atlantic City attracts more than 27 million visitors each year, according to city figures. If recent information from Gallup is correct and 17% of Americans indulge in marijuana, about 4.59 million of those visitors are likely to visit a cannabis business.
So far, a significant portion of the business at Design 710 has come from people who live in or near Atlantic City, Casile said, but they’ve had visitors from many other states, including Texas. She said she expected a drop in business after the summer in her first year on the job, but it was minimal and sales already appear to be picking up next summer.
Casile said she and her partners looked into the possibility of a lounge for consumption, but the return on investment didn’t look very attractive, especially considering there would be no food or beverage sales.
Cohn expects these rules to change as the market develops and matures. The salon won’t be a major revenue generator at first, he said, but the plan is to settle into the space early.
“We’re expecting a lot of rule changes,” he said, suggesting the New Jersey Casino Regulatory Commission wants to tread very carefully as it establishes the market. “I just think they walk before they run, which makes sense.”
Cohn is involved in other major projects, including a cannabis grow planned for an existing building on Baltic Avenue and a multi-phase, larger grow and production facility on Atlantic Avenue near Dr. Martin Luther King Jr. Boulevard.
This site has been cleared, but work has been delayed due to environmental concerns. Cohn said 13 underground tanks were found after the inspection was completed and some of the tanks were damaged.
Long-term plans for Atlantic Avenue include a cannabis museum that would be separate from the dispensary and open to the public, Cohn said. He expects this to serve as a destination in itself, allowing visitors to see how the plant is grown and processed.
Each of the projects will mean massive investment, with tens of millions of dollars being spent on the Atlantic Avenue and Baltic Avenue sites.
Atlantic City officials see cannabis as a major economic driver in the coming years, with members of Mayor Marty Small Sr.’s administration saying it could become the cannabis capital of the East Coast.
There are some problems. For example, Casile said there are few opportunities to work with Atlantic City’s biggest economic players, the casinos, because of federal regulations.
Weed’s continued listing as a Schedule I drug by the federal government has other drawbacks, Cohn said. For example, cannabis businesses cannot deduct business expenses on their tax returns the way other companies can. He said it’s ironic because companies can deduct the price of the product they sell, even though that very product is listed as an illegal drug.
Applegarth describes four types of cannabis travelers, those who are curious about the experience, cannabis connoisseurs, wellness travelers, and those who use cannabis as part of a ceremonial or spiritual practice.
Casile said businesses should make both those new to cannabis and those steeped in the culture feel welcome and safe, and that staff should be willing to guide those who aren’t. aware of the effects on the likely intensity, dosage and products available.
