The impact of cannabis tourism on the Airbnb industry

Despite the growing importance of the sharing economy and cannabis tourism, no research has examined their intersection. This study examines how recreational marijuana legalization is associated with the hospitality sector of the sharing economy (e.g., Airbnb). We introduce the concept of localized cannabis tourism—the experiential value created when legal cannabis access is spatially concentrated alongside cannabis-friendly accommodations and services—as a potential mechanism linking legalization to lodging demand. Using panel data from Denver, Colorado (October 2014–August 2022), we analyze how the presence of recreational marijuana stores is associated with Airbnb performance, including revenue, rental price, reservation days, and listings. Results show that a 20% increase in store numbers is associated with a 2.24% rise in average revenue, a 1.24% increase in reservation days, and a 4.28% growth in listings. Findings suggest that localized cannabis tourism stimulates participation in the sharing economy, highlighting the role of public policy in shaping economic opportunities in tourism and hospitality.