A council has decided to reinstate free Yuletide parking for one year in a bid to support small businesses.
Gwynedd County Council cancelled the Christmas perk last year to save money, but have voted to bring it back.
The council board were told the one-off free parking initiative - for nine days from 20 to 29 December - was in response to the economic situation.
Caernarfon shop owner Miriam Jones said traders would welcome the move as everyone was suffering slow trade.
Up to last year free Christmas parking had been offered every year at the council's 41 pay-and-display car parks.
"I'd like it to go on for longer, but this is better than nothing"
In November, Caernarfon traders appealed for the scheme to be brought back.
They claimed they needed help because of "disturbance" to businesses while the town square was redeveloped and the road layout changed.
Councillors were told that the concession over the 2008 Christmas period would result in a loss of income to the council.
Nine days of free parking could result in a reduction in income of between £29,000 and £38,000.
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This would add to the projected gap of £230,000 between the council's parking fee budget and the estimated income at the end of the financial year.
The reduction in the VAT rate from 17.5% to 15% affects car parking fees however, and will mean a saving of around £20,000 in VAT payments.
In conjunction with free parking the council also plans to launch a Gwynedd Christmas Shopping campaign to "maximise the benefits to shops over the Christmas period".
"I definitely welcome this move as it has been very quiet here in the build-up to Christmas, although I don't think we've suffered more than traders elsewhere," said Mrs Jones, who runs Siop y Plas in Caernarfon.
"I'd like it to go on for longer, but this is better than nothing.
"Parking and the new road layout in the town has meant fewer people come here, " she added.
On Anglesey, council-owned car parks are free in the week before Christmas.
"The free parking programme has become an annual tradition here on Anglesey," said the council highways portfolio holder, councillor Clive McGregor.
"The hope is that we can attract more businesses into town centres giving traders a much-needed boost before Christmas."
A spokeswoman for Conwy council said there were no plans to offer free parking there.
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