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Salem review finds October 2024 tourism revenues fell short of costs; lodging excise rose
Summary
City staff presented a financial after-action on Haunted Happenings 2024 showing $6.64 million in direct costs, $716,000 in direct revenues and a slim net of $72,622; lodging excise contributions rose sharply, offsetting some operating pressure as overtime costs climb.
The Salem mayor and city staff told the Council committee Wednesday that Haunted Happenings 2024 generated $6,643,000 in direct city expenses and $716,000 in direct revenues, leaving a net of $72,622, down about 14% from the previous year.
City officials said the decrease in net revenues came despite a roughly 23% increase in lodging excise revenue for the October–December quarter, and they warned that rising overtime costs after recent labor contract settlements could widen the shortfall next year.
The mayor, who presented the financial slides in the absence of the finance director, said the city’s “public safety operation” is the primary expense in October and that “the costs for managing the visitor economy in Salem should be borne by the visitors.” He noted that rebidding the portable toilets contract reduced that line item and helped bring direct costs down 2.5% from 2023.
City staff showed the meals-and-lodging excise for the October–December quarter rose by about $330,000 to roughly $1.4 million, driven chiefly by lodging excise increases tied to more hotel rooms and changes in state law expanding excise coverage to short-term rentals. Staff said meals excise was essentially flat year over year.
Officials emphasized that the margin between direct costs and direct revenues has narrowed over time because public-works and public-safety overtime are growing faster than revenue sources. With newly settled contracts for police, fire and AFSCME staff, the mayor said the city expects overtime costs to rise “considerably” for the next Halloween season and signaled the city will seek to offset that with excise revenue and other user fees rather than property taxes.
The committee voted to receive and file the report at the meeting’s close.
Budget and revenue details cited during the presentation are drawn from the city’s October 2024 after-action slides filed with the Council and discussed by staff.
