The tramway was built and initially operated by Thomas Lightfoot, a retired civil engineer from
Sheffield. His service was introduced in 1876 between the bottom of what is now Summer Hill and the bottom of Broadway in the centre of today's promenade adjacent to the Villa Marina. In the earliest days the track was expanded, and passing loops and long crossovers added so that by 1891 the line ran double track the entire length of the promenade, much as it does today. From opening it has operated every year, except for a period during the
Second World War. In 1882, Lightfoot sold the line to Isle of Man Tramways Ltd, later the Isle of Man Tramways & Electric Power Co. Ltd, which also owned the Manx Electric Railway. The company went into
liquidation in 1900 as a consequence of a banking collapse. The tramway was sold by the
liquidator to Douglas Corporation in 1902. Since 1927 the tramway has run in summer only. In 2015 Douglas Corporation partnered with Isle of Man Transport to introduce the 'Ticketer' system as used across the Island's other public transport systems. On board a Ticketer hand-held unit connects with the island-wide contactless Go Cards and individual tickets can also be purchased.
Closure Despite being the world's last remaining 19th century original horse-drawn passenger tramway and the second-oldest operational rail system on the island, the future of the tramway has been brought into question in recent years. In January 2016, Douglas Corporation announced that the tramway had run for the last time the previous September and that they had closed it as it was not financially viable. The tramway had made a loss of £263,000 in 2015.
Continuance After an online petition attracted more than 2,000 signatures, the
House of Keys established a committee to look into ways of retaining the iconic horse trams. The operation of the tramway was taken over by the Isle of Man Heritage Railways division of the
Department of Infrastructure and continued in the 2016, 2017 and 2018 summer seasons. Various plans were submitted by the Department of Infrastructure to rebuild the Douglas Promenades. In one version, the tramway would move from its location in the middle of the roadway to a new single line formation adjacent to the Promenade walkway. The plans received some criticism from a group of local residents who objected to the siting of the trams near to the walkway. However, in 2019, the tracks were relaid in their previous alignment along the centre of the road. Trams started running again on Friday 29 July 2022, between Strathallan tram depot and Broadway. ==Description==