Costa Rica is making strides in reforming medicinal cannabis

Costa Rica finally made it! On Wednesday this week, the country’s President Carlos Alvarado signed into law the medical marijuana law passed the day before. The law has been in limbo since Alvarado vetoed it earlier this year, arguing that limits should be placed on individual cultivation and consumption. Lawmakers sent it back to him this week with the changes he wanted.

Supporters are praising the legislation, saying it will give the country’s agricultural sector a much-needed boost and create jobs.

Alvarado finally acknowledged that reforms are inevitable in the final days of his administration. The two candidates who want to replace him, José Maria Figueres and Rodrigo Chavez, do not seem to share his reservations. Both publicly advocate leisure reform. They will face off in a runoff election next month. As a result, further advances appear imminent.

Given what’s going on in the region, there’s no real surprise here. Neighboring countries like Argentina, Chile, Colombia, Paraguay and Peru have all progressed along the same path, although their transition to leisure reform may not be as quick or smooth. Ecuador just made progress this week. Brazil is now on the brink.

Of all the countries in the region, however, only Uruguay has enacted full leisure reform – indeed the first in the world – although Mexico is now on the verge of becoming the second country in the region to follow suit. However, given the testimonies of the men now vying for the country’s political top spot, Costa Rica could become the second (or third) country in Central or South America to fully legalize the plant, as well as its consumption.

Why Costa Rica’s leisure market is so attractive

Prior to this week, cannabis was essentially decriminalized here. Self-consumption was not prosecuted. In fact, there is a long history, tradition, and culture of use (no matter how misunderstood or mischaracterized). This was confirmed by a court decision in 2016. Since the old law had no restrictions on cultivation or ownership, the question of restrictions was apparently such a hot political issue for an outgoing president.

The current push for legalization began in 2019. There is currently only one company in the country that has received permission to study the plant, and it grows 12 varieties in two different locations.

It doesn’t take a rocket scientist to realize, however, that Costa Rica’s prospective domestic industry will be a boon to the country — and far from exports. There is a strong medical tourism and expat sector that will get a boost almost immediately from the current legislation. The country has been one of the tropical spots for aging American and Canadian boomers to relocate in recent decades, partly because of the far cheaper standard of living, the high quality of existing healthcare, and of course the weather and the jaw-dropping scenery.

Aside from the more or less permanent snowbirds, before COVID, Costa Rica received about 1.7 million tourists a year, mostly from North America. About 80% of tourists come for ecological tourism. The revenues from this economic sector amount to more than $1.7 billion – or did. It is also the main source of foreign exchange. At least until COVID, it was also growing at an average of just over 7% per year.

This new announcement will surely be welcomed not only by those who want to create temptations for tourists, but also by tourists. The intersection of the two is bound to be lucrative and very popular.