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Thousands of Cannabis Shops Face Shutdown Under New Law

Thousands of cannabis shops across Thailand are facing possible closure as the government prepares to reclassify the plant as a narcotic, reversing a landmark policy that legalised its use just two years ago.

The Ministry of Public Health issued an order late Tuesday banning the sale of cannabis for recreational use. Under the new directive, purchases will require a doctor’s prescription, and any shop selling cannabis without medical authorisation will be shut down.

The new regulations will come into force once published in the Royal Gazette, which could happen within days.

“Cannabis will be classified as a narcotic in the future,” Public Health Minister Somsak Thepsuthin announced on Tuesday.

The move is expected to upend Thailand’s burgeoning cannabis industry, estimated to be worth over US$1 billion.

Since 2022, the sector has seen explosive growth after the government removed cannabis from the narcotics list — a decision driven by the Bhumjaithai Party, which recently exited the ruling coalition following political disputes.

Recreational cannabis use, however, has sparked growing concern in popular tourist areas.

In Phuket alone, there are believed to be more than 1,500 cannabis shops, many operating without clear regulation. Across the country, the number of cannabis retailers is estimated at 18,000.

Damrongkieat Pinijkarn, secretary of the Pattaya Entertainment Association, said public complaints have surged, especially from tourists and residents disturbed by public cannabis use on streets and beaches.

He welcomed the new regulations, saying they would improve Pattaya’s image and public well-being.

“For the past three years, many cannabis stores exploited the legal loopholes to sell weed anywhere, putting children and locals at risk,” said Mr Damrongkieat. He added that some stores have already shut down following earlier attempts to reclassify the plant under Prime Minister Srettha Thavisin.

The new crackdown, if supported by stricter enforcement, could force even more closures. Mr Damrongkieat noted that some operators had resorted to bribing police to avoid penalties.

Now, he said, authorities have clearer power to arrest both shop owners and users who violate the law.

He predicted that the number of cannabis outlets would soon fall to levels more aligned with medical demand and called on the government to communicate the new rules clearly to foreign visitors. He also urged officials to consider compensation for businesses that had invested heavily in the now-threatened industry.

Industry Pushback Grows

Despite the government’s announcement, industry stakeholders remain skeptical of the need to reclassify cannabis as a narcotic.

Pongchanok Wisetraksakul, operations manager of a Phuket-based cannabis store, said the change was unnecessary for advancing the wellness and medical sectors.

“The government should focus on regulating unlicensed shops instead,” he said, adding that his store is ready to comply, but many others are now left without support or relief options.

Most cannabis entrepreneurs in Phuket, he noted, have yet to recoup their investments, which typically range from 500,000 to 10 million baht.

Bhummikitti Ruktaengam, vice-president of the Tourism Council of Thailand, said the policy shift could restore confidence among tourists, particularly seniors and families with children. He proposed designated cannabis zones to help manage its sale more effectively.

Government spokesman Jirayu Houngsub echoed concerns over social consequences tied to unregulated access to cannabis, especially among children.

“The policy must return to its original goal of controlling cannabis for medical use only,” he said.

The sudden shift has left many in the cannabis industry stunned.

“This is my main source of income,” said Punnathat Phutthisawong, 25, who works at a dispensary in Bangkok. “Many shops are probably just as shocked because a lot of them invested heavily.”

Activists also criticised the government’s back-and-forth approach. Chokwan “Kitty” Chopaka, a long-time cannabis advocate, said the lack of consistent policy has crippled the industry’s potential.

“The cannabis industry has become a hostage to politics,” she said.

Despite the regulatory uncertainty, cannabis shops on Bangkok’s Khao San Road continued to see foot traffic from curious tourists on Wednesday.

“There are shops everywhere, so how do they reverse this? I don’t think they can,” said Daniel Wolf, a tourist from Australia. “It’s absolutely insane.”