Shoppers will be able to park for free on the Loch Promenade walkway in Douglas at some points during the festive period.
Motorists will be able to park their vehicles on the walkway free of charge on Thursdays (after 5pm), Saturdays and Sundays from November 26 until December 31.
Pay and display charges will be in place at other times between November 26 and January 25 in the designated parking zone from the War Memorial to the Bottleneck car park.
The measures are in addition to the free festive season parking being offered by Douglas Council in its car parks.
Parking will be free on Thursday evenings from 5pm and all day on Saturdays in Chester Street, Shaw’s Brow and the Bottleneck car parks from November 26 to December 31.
Retailers said they wanted more parking.
John Houghton MHK, a member of the Department of Infrastructure, said: ‘We recognise that trading conditions remain challenging for some retailers and are keen to play a part in encouraging people to shop local and support the Manx economy.’