Assessing Economic Impacts of Mile High 420 Festival in Colorado

Abstract

This study uses an input–output model to assess the economic impact of the 2018 Mile High 420 Festival on the Colorado economy. A comprehensive assessment was conducted to determine the economic impact of the Mile High 420 Festival, which included analyzing the direct, indirect, and induced effects of festival spending. The study involved 233 respondents whose primary motive was to attend the 420 Festival. Using IMPLAN, the study’s data were analyzed to determine the economic activity generated by visitor activity. On average, each respondent spent USD 2013 during their trip to Colorado. The largest expense per person was on cannabis-related activities and shopping, followed by lodging and food and drink. When these expenses were multiplied by the number of visitors (25,650), the total spending amounted to USD 51.7 million. When indirect and induced spending was included, the 2018 Mile High 420 Festival generated a total economic impact of over USD 95 million for Colorado. It contributed to the creation of 787 jobs in the region. No study has been conducted on the economic impact of a cannabis-themed festival in the current tourism literature. Therefore, this study contributes to filling this gap by developing literature on the impact of cannabis tourism and its implications for host communities or states, especially for state policymakers and business professionals. The results of this study are expected to serve as a reliable benchmark for subsequent economic impact analyses and comparisons with other industries.