The Department of Infrastructure says extra bus stops and shelters at the end of Douglas Promenade would cost around £735,000.
A report about bus and passenger facilities in Lower Douglas is due to be laid before Tynwald in July.
It says extra bus stands on Victoria Street and shelters for bus and tram passengers at the Bottleneck Car Park would include real-time information, lighting, shelter, seating and wifi.
The report adds although other options were considered, they weren't thought to offer the best value for money - with a bus station at the Bottleneck Car Park priced at around £2.4 million.
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