Menu
Tax Notes logo

Pandemic Spooks Salem's Tourism Tax Revenue This Halloween

Posted on Oct. 26, 2020

The supernatural powers of the witches and wizards of Salem, Massachusetts, are no match for COVID-19.

City officials report that tax revenues are already down for the year and a number of major Halloween events are canceled because of the pandemic.

Hotel and motel tax revenues are down 55 percent and meals tax revenues are down 35 percent in the first quarter of fiscal 2021, Mayor Kim Driscoll (D) said during an October 21 news conference.

“There’s reduced capacity, so we’re going to see reductions,” Driscoll said. “Salem will be here after Halloween, and we want to make sure we're up and running and serving everybody afterwards as well.”

Salem, best known for its 1692 witch trials, normally gets nearly 500,000 visitors every year to celebrate the Halloween season, according to an August 4 release announcing cancellation of large-scale events for the ghoulish holiday. “The month of October is very important to the local economy, producing thousands of jobs and millions in local sales revenues for Salem’s restaurants, shops, and other businesses each year,” the release said.

This year, Salem will be implementing additional public safety proposals and increasing fines in anticipation of Halloween, including canceling all its usual Halloween night events and requiring businesses to close early on October 30 and 31, according to an October 21 release. Although the cancellations don't include trick-or-treating, the release says that "anyone choosing to trick-or-treat should be out no later than 8 p.m." 

The release also urges visitors to postpone their visits to Salem. 

“Ordinarily, there is no better place to celebrate Halloween than Salem. Our first priority from the outset of this pandemic has been keeping residents, employees, and visitors healthy and safe. To help ensure we can meet that goal, we are taking action to limit the number of people who will be in Salem on Halloween and the day prior,” according to the October release.

Copy RID