Service set to run two more years
The horse tram service is to run for a further two years, subject to Tynwald approval.
Infrastructure chiefs have vowed to operate it while discussions continue about its long-term viability.
Tynwald will be asked later this month to support a package of measures that would see the trams run from Strathallan to the War Memorial in 2017 and 2018.
The Department says it will then use its analysis over three years to make a 'fully informed' decision on the future of the horse trams.
While acknowledging significant investment is needed for a new track, stables and depot, minister Phil Gawne says the trams are an iconic symbol of the Isle of Man, an important contributor to the economy and one of the most historically important transport systems in the world.
Since taking over the running of the service from Douglas Council, who will be asked to transfer ownership of the Strathallan tram depot to the department, Mr Gawne says plans have been put in place to reduce costs and maximise income.
Figures for the opening weeks of the 2016 season show an increase of 7,707 passengers with cash revenue up 64 per cent.
He says in the longer term, Tynwald will be asked to support proposals to install a single tram track from Derby Castle to the War Memorial as part of a Promenade redevelopment scheme.
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