Salem’s Halloween Happenings Are a Boon for Tourism, But a Strain on City Resources

Each October, the coastal community of Salem, Massachusetts, welcomes more than a million visitors to its streets and sidewalks for Halloween Happenings events.

While Halloween is big business for Salem's tourism, it is not a significant revenue source relative to the city's overall budget. 

In a recent episode of the CommonWealth Beacon's Codcast, Salem Mayor Dominick Pangallo put some numbers to the city's Halloween ventures. According to Pangallo, Salem spent approximately $640,000 last year on enhanced police, public works, and safety measures to accommodate tourists, an expenditure that's only slightly offset by tourism revenue.

Pangallo explained that the city collected about $700,000 in revenue last October, excluding the meals and lodging tax. This tax is reported quarterly instead of monthly. The total was approximately $1.5 million in the quarter that included October last year. When compared to the city's more than $200 million annual budget, it's a small amount of revenue.

Nonetheless, tourism is important in Salem, Pangallo said, and contributes approximately $140 million in direct spending and supports about 1,200 jobs. This visitor economy allows Salem to maintain a 98% storefront occupancy rate in the downtown and waterfront areas.

“Not every business in our downtown is connected to the tourism industry, so when October comes around, some of those places have a hard time with the regulars being able to get in and get a haircut or pick up something at the store,” Pangallo said in a statement shared with the CommonWealth Beacon. 

Pangallo highlighted a bill proposed by Massachusetts Gov. Maura Healey that would permit municipalities to increase their local tax on meals and lodging. He said Salem meets the maximum limit set for both categories. Raising the tax limit could shift the city's cost burdens onto visitors who directly benefit from these services.