Despite Rise in Halloween Visitation, Salem Sees Decline in Revenue

While the City of Salem has attracted record visitation to the community for its popular Haunted Happenings Halloween celebration, net revenue from the attraction has declined.

According to the Salem News, the city received more than 1.04 million visitors, an 8.6% increase from 2023. But Salem's net revenue for Haunted Happenings declined 14% from $84,175 in 2023 to $72,622 in 2024, city officials reported.

The Salem City Council, Salem Mayor Dominick Pangallo, and additional city department leaders discussed the 2024 findings during the city's “after-action review.”

“Over time that net is declining, so that margin shrinks as costs relating to public works and public safety overtime expenses are growing at a faster pace than revenues, even though revenues are generally growing,” Pangallo said in a statement provided to the Salem News.

In their analysis, Salem leaders explained that direct expenses for Haunted Happenings decreased 2.5% from 2023 ($659,993) to 2024 ($643,671), mostly due to a reduction in shuttle bus costs. This figure was also affected by a renegotiation of the city's contract with its portable toilet supplier, which was reduced by $22,285.

The city's direct revenues, however, posted a slightly larger reduction of 3.7% from 2023 ($84,175) to 2024 ($72,622). Most of the city's revenue results from parking meters, lots, garages, vendor licensing, and health inspection fees.

Pangallo said he also anticipates an overall economic slowdown that will likely result in a decrease in tourism and travel.

However, the increase in public safety measures needed for Haunted Happenings has driven up costs for the event. Last year, they included installing new light towers, barricade fencing for pedestrians, and the implementation of evacuation plans.

“The majority of our resources are directed toward keeping everyone as safe as possible during the busy season,” Pangallo said. “The plan evolves every year, and following the attacks in New Orleans and Vancouver, this year is no different. So you'll see in the coming months more emphasis on safety and response to concerns related to that.”