Extra parking on Douglas Promenade will be made available at the former Castle Mona Hotel site.
Tevir Group, which owns the land, is allocating extra spaces as it looks to support local businesses whilst refurbishment work continues in the area.
The organisations says a section of the site has been made available to the Department of Infrastructure to create a temporary disc parking zone.
The group is currently involved in a series of multi-million pound projects in the town, including at 55 Athol Street and Villiers House.
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