Scarborough Council has announced it will only close the seafront during a car rally if there is a threat to public safety,
Sandra Rees, community safety officer said had a full closure had been considered but that instead it has been decided that a closure will take place if there is a threat to public safety from the rally.
It is welcome new for traders who feared losing thousands of pounds if the road had not been open on the Bank Holiday Sunday.
Ryan Linley of Static Royals, the organisers of the rally, said: "I'm delighted. Everything will be going ahead as planned."
However, confusion remains about what decision was taken, with a number of people telling the Scarborough News that they were informed the road would not be open on the Sunday.
Jack Stephenson, of Shoreline Suncruisers, said: "The last thing I was told was that we would be allowed to let our buses to go down the road but cars could not use it. Then later I got an email saying there would an announcement coming this afternoon."
Cllr John Nock also did not deny the road closure when asked directly by The Scarborough News this morning.
A spokesperson for Scarborough Borough Council said: "We are expecting the Scarborough Static Royals to visit Scarborough on Sunday 28th May 2017.
"We can confirm that the Council and North Yorkshire Police are working with the organiser to ensure a safe and well organised event. We are not at this time anticipating road closures of Marine Drive being necessary over the bank holiday weekend unless there are concerns about public order or safety identified during the event.
"We would ask that anyone planning to take part in the event does so in an considerate and responsible manner and has regard for the safety of residents and visitors over what we hope will be a busy and enjoyable weekend."