Marijuana-tourism: Disruptive Innovation for Small Island Developing States

The Caribbean region consists of many small island developing states (SIDS) that are dependent on a sun, sea, and sand (3-S) tourism product. These SIDS are facing declining competitiveness vis-à-vis other tourism destinations and need to differentiate and rejuvenate their tourism product offerings. This study investigates the extent to which marijuana-tourism can lead to disruptive innovations (DI) in SIDS that are tourist dependent. A systematic review, using 53 research articles and a thematic synthesis analyzing seven different themes: (1) demographic profile of marijuana users and potential market size, (2) marijuana-tourism motivations, (3) common uses of marijuana, (4) types and structures of legal and regulatory frameworks, (5) cultivation, distribution, and marketing factors, (6) economic impacts of legalized recreational marijuana; and (7) adverse health and safety impacts were elaborated. The principal findings are that the regulatory framework for legalization acts as a mediating variable for defining the scope and structure of marijuana-related businesses and tourism niches that appear. When the recreational regulatory framework permits private competition, as evidenced in the early pioneering jurisdictions, significant economic benefits have resulted and at the same time social and health costs have been attenuated to date. In the context of SIDS, legal regimes are still largely prohibitionist, and in a few instances, partial liberalization has occurred. As liberalization progresses, structural and governance challenges exist that may moderate benefits. Further research is needed in many areas, given that the liberalization of marijuana laws is a recent phenomenon. More research is needed in areas, such as in-depth economic and social impacts analysis; the profile, composition, and expenditure patterns of marijuana tourists; the comparative advantages of different regulatory frameworks; and the public health and safety impacts for residents, marijuana tourists, and hospitality sector workers.Running Head: MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS Marijuana-Tourism: Disruptive Innovation for Small Island Developing States Gemma Antonine Wenner A dissertation submitted to the graduate faculty of the University of Maryland University College in partial fulfillment of the requirements of the degree of Doctor of Management December 2018 Dissertation Committee Chairs: Dr. Kriesta Watson (Primary) Dr. John Sherlock (Secondary) MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS iii © Copyright by Gemma Antonine Wenner 2019 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS iii ABSTRACT Title of Dissertation: MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SMALL ISLAND DEVELOPING STATES The Caribbean region consists of many small island developing states (SIDS) that are dependent on a sun, sea, and sand (3-S) tourism product. These SIDS are facing declining competitiveness vis-à-vis other tourism destinations and need to differentiate and rejuvenate their tourism product offerings. This study investigates the extent to which marijuana-tourism can lead to disruptive innovations (DI) in SIDS that are tourist dependent. A systematic review, using 53 research articles and a thematic synthesis analyzing seven different themes: (1) demographic profile of marijuana users and potential market size, (2) marijuana-tourism motivations, (3) common uses of marijuana, (4) types and structures of legal and regulatory frameworks, (5) cultivation, distribution, and marketing factors, (6) economic impacts of legalized recreational marijuana; and (7) adverse health and safety impacts were elaborated. The principal findings are that the regulatory framework for legalization acts as a mediating variable for defining the scope and structure of marijuana-related businesses and tourism niches that appear. When the recreational regulatory framework permits private competition, as evidenced in the early pioneering jurisdictions, significant economic benefits have resulted and at the same time social and health costs have been attenuated to date. In the context of SIDS, legal regimes are still largely prohibitionist, and in a few instances, partial liberalization has occurred. As liberalization progresses, structural and governance challenges exist that may moderate benefits. Further research is needed in many areas, given that the liberalization of marijuana laws is a recent phenomenon. More research is needed in areas, such as in-depth economic and social impacts analysis; the profile, composition, and expenditure patterns of marijuana tourists; the comparative advantages of different regulatory frameworks; and the public health and safety impacts for residents, marijuana tourists, and hospitality sector workers. MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS iv Keywords: Cannabis, marijuana, disruptive innovation, drug policy, legalization, the motivation for drug tourism, tourism expenditure patterns, marijuana tax revenue, health and safety effects of marijuana, tourism life cycle, tourism product differentiation MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS v DEDICATION This dissertation is dedicated to Mark D. Wenner. You are my rock, my strength, my muse, my sounding board, my best friend, and husband. When I doubted my abilities, when I was ready to quit, when things got to be too much, you continued to stand by me, you pushed all those negative thoughts away, motivated and encouraged me not to give up. You stood by me and supported me all the way to the end. Thank you. The love I have for you is unfathomable and unwavering. MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS vi ACKNOWLEDGEMENTS First and foremost, I want to acknowledge my parents: Rachel and Jean Pierre-Nicolas Gaetjens (RIP). I am very fortunate to have been born as your daughter and thank you for the guidance given, the opportunities provided, and values imbued. You insisted on travel, learning about other cultures, making sure that we spoke French and Spanish at home. You had me listening to a wide variety of music genres. You taught me to be empathic, to being curious, to be tolerant, and to dream big. I appreciate the love and support you have given me throughout my life. Because of you, I have had a life of travel, cultural enrichment, superior educational opportunities, and have pursued a career in tourism/hospitality. I love you both and owe you so much. To my children, Felicia and Carlos, I also owe a debt of gratitude. Felicia, you are my pride and joy and my source of inspiration. You always encouraged me to pursue a graduate degree. I love you and thank you for supporting my quest for advanced degrees. Carlos, not a day goes by that I don’t think about you. I miss you so much. May you rest in eternal peace. My extended family—Steve, Alex, Lane, Mark, Jr., Mariah, and Jules—you “kids” keep me young, make me laugh, make me very happy to be your mother-in-law and stepmom. I am so blessed to have you all in my life. I also would like to acknowledge my thesis advisor, subject matter experts, copy editor, and cohort members. To my dissertation chair, Dr. Kriesta Watson, she kept me in check. Whenever I veered off my topic, she would often say, "I do not want you freelancing. You need to stay focused.” I will never forget those words. You are awesome, Dr. Watson! To my subject matter experts (SME), Dr. Ernest Boger and Dr. Joyce Cacho, your reviews and encouragements MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS vii helped me. To my copy editor, Dr. Elaine Whitlock, your help in editing and formatting was invaluable. To all of you a big thank you. To my amazing cohort members, I also want to express my gratitude for all the mutual support. You are, by far, the finest group of people I have had the pleasure of meeting. A special thank you is extended to "my same advisor group": Lomax, Barbara, and Loretta. I will miss our group sessions. To Sherese Bishop, thank you for setting up the DM Student UMUC Facebook page. It was my "go-to-web-page," where it was safe to lament and laugh about the doctoral experience but, most importantly, to get questions answered quickly and to share valuable information. Finally, to all my friends who listened to me ramble on and on about this topic, thank you for your patience. MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS viii TABLE OF CONTENTS Page ABSTRACT ................................................................................................................. iii DEDICATION .............................................................................................................. v ACKNOWLEDGEMENTS .......................................................................................... vi TABLE OF CONTENTS ............................................................................................ viii LIST OF TABLES...................................................................................................... xiii LIST OF FIGURES .................................................................................................... xiv CHAPTER 1 INTRODUCTION ................................................................................... 1 Statement of Problem ......................................................................................... 4 The Purpose of the Study ................................................................................... 6 Research Question.............................................................................................. 6 Propositions ....................................................................................................... 6 Significance of the Study ................................................................................... 7 Preliminary Conceptual Framework ................................................................... 7 Tourism Area Life Cycle .......................................................................10 Disruptive Innovation ............................................................................12 Innovative Clusters ................................................................................14 Design, Limitations, and Assumptions ..............................................................15 Design ...................................................................................................15 Limitations ............................................................................................15 Assumptions ..........................................................................................16 Definition of Key Terms ...................................................................................17 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS ix Cannabis/Marijuana ...............................................................................17 Disruptive Innovation ............................................................................18 Legalization ...........................................................................................18 Mediate .................................................................................................18 Regulatory Framework ..........................................................................19 Small Island Developing States..............................................................19 Organization of Dissertation Chapters ...............................................................19 CHAPTER 2 LITERATURE REVIEW .......................................................................21 The Significance of Tourism as an Engine of Growth and Development............22 Economic, Health, and Social Impacts of Cannabis as a Tourism Product .........26 Economic Impacts .................................................................................26 Health Impacts.......................................................................................28 Social Impacts .......................................................................................29 Leadership Skills and Socio-political Mobilization Needed for Legalization .....31 Complexity Leadership Theory ..............................................................31 Leadership and Advocacy Organizations in Achieving Social Change ............................................................................................33 History of Advocacy for Legalization of Marijuana in the US ................36 Linkages Between Agriculture and Tourism: Agritourism .................................39 Disruptive Innovations and Clusters ..................................................................42 Disruption Innovation ............................................................................42 Clusters .................................................................................................44 Summary...........................................................................................................47 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS x CHAPTER 3 RESEARCH DESIGN AND METHODOLOGY ...................................50 Introduction ......................................................................................................50 Organization of the Chapter ..............................................................................50 The Purpose of the Study and Research Question ..............................................51 Explanation of Systemic Review .......................................................................51 Step 1: Review Organization and Planning ............................................55 Step 2: Framing the Question Using Context-Intervention-Mechanism- Outcome (CIMO) Framework ........................................................56 Step 3: Defining Search Strategy and Methods ......................................59 Search strategy ...........................................................................59 Scholarly electronic databases ........................................59 Description of search protocol ........................................60 Preferred reporting items for systematic reviews and meta-analyses (PRISMA) ........................................62 Exclusion criteria ................................................64 Inclusion criteria .................................................64 Data collection ...........................................................................65 Step 4: Relevance and Quality Assessment ............................................65 Publication bias ..........................................................................68 Step 5: Synthesis ...................................................................................68 Computer-assisted coding—Atlas.Ti ..........................................69 Coding............................................................................69 Step 6: Strategy for Findings Interpretation ............................................74 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS xi Consideration of Expert Panel ....................................................76 Expert Panel Review Members ..................................................76 Expert Panel Members’ Feedback ..............................................77 Summary .......................................................................................78 CHAPTER 4 RESULTS .......................................................................................79 Presentation of Findings ....................................................................................79 Analysis of Coding: Frequency Analysis ...........................................................80 Analysis of Coding: Elaboration of Themes ......................................................85 Theme 1: Demand: Potential Market Size and Demographic Profile of Marijuana Users and Tourists (14 Articles) ...................................85 Theme 2: Demand: Motivation for Marijuana-tourism (18 Articles) ......88 Theme 3: Demand: Uses (5 Articles) .....................................................90 Theme 4: Legal and Regulatory Framework (14 Articles) ......................90 Theme 5: Supply (6 Articles) .................................................................95 Theme 6: Economic Impacts (17 Articles) .............................................96 Theme 7: Adverse Health and Safety Impacts (10 Articles) ...................97 Summary of Themes .......................................................................................98 Analysis of Findings .......................................................................................99 Refined Conceptual Framework ...................................................................... 103 Extrapolations and Implications for Small Island Developing Tourism Development ..................................................................................... 106 Summary ..................................................................................... 111 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS xii CHAPTER 5 DISCUSSION, IMPLICATIONS, LIMITATIONS, AND SUGGESTIONS FOR FURTHER RESEARCH ................................................ 113 Discussion Summary ........................................................................... 113 Implications for Management and Practitioners ................................... 118 Limitations .......................................................................................... 119 Suggestions for Areas of Future Research ............................................ 120 APPENDICES APPENDIX A Keywords ......................................................................... 122 APPENDIX B Legal Status of Marijuana in the United States (as of November 2018) ..................................................................... 123 APPENDIX C Quality Appraisal, Scoring, nd Rating (TAPUPAS) ............... 124 APPENDIX D List of Academic Articles Selected for Quality Review and Final Decisions ....................................................................... 126 APPENDIX E Publications in Systematic Review Dataset and Used for Thematic Synthesis ................................................................. 131 REFERENCES ........................................................................................................... 133 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS xiii LIST OF TABLES Page Table 1 Research Propositions ...................................................................................... 7 Table 2 Questions and Methods ...................................................................................53 Table 3 Enhancing Transparency in Reporting the Synthesis of Qualitative Studies .....54 Table 4 CIMO Explained and Applied to the Topic of Marijuana-tourism ...................58 Table 5 Marijuana Keyword Strings and Results (Databases) .......................................61 Table 6 Article Selections by Snowball Technique.......................................................61 Table 7 Hand-picked Gray Literature ...........................................................................61 Table 8 Exclusion Criteria ...........................................................................................64 Table 9 Generic Standards and Definitions ..................................................................66 Table 10 Quality Appraisal Rating Category .................................................................67 Table 11 Quality Assessment Ranking Criteria and Distribution for Marijuana Academic Articles ....................................................................................68 Table 12 Criteria Used in Coding ..................................................................................71 Table 13 Thematic Synthesis Coding Stages .................................................................75 Table 14 A Simple Regulatory Framework for Legal Cannabis .....................................92 Table 15 Evidence Supporting P1 ............................................................................... 100 Table 16 Evidence Supporting P2 ............................................................................... 101 Table 17 Evidence Supporting P3 ............................................................................... 101 Table 18 Evidence Supporting P4 ............................................................................... 102 Table 19 Areas for Research ....................................................................................... 120 Table C Article Quality Appraisal, Scoring, and TAPUPAS Rating ........................... 124 MARIJUANA-TOURISM: DISRUPTIVE INNOVATION FOR SIDS xiv LIST OF FIGURES Page Figure 1 Hypothetical evolution of the tourism area .....................................................12 Figure 2 The constructs of performance trajectories and the classification of sustaining and disruptive innovations. ......................................................13 Figure 3 Organizing folders. ........................................................................................56 Figure 4 PRISMA flow chart for marijuana articles screening criteria. .........................63 Figure 5 Hierarchy chart of keyword frequencies. ........................................................81 Figure 6 Groundness-frequency of codes depicting benefits. ........................................82 Figure 7 Groundness-frequency of codes depicting adverse impacts. ...........................83 Figure 8 Groundness-frequency of codes depicting legal and regulatory concerns ........83 Figure 9 Groundness-frequency distributions of codes depicti