The banners are designed to attract more visitors

The Gwynedd town, the famous setting for the Prince of Wales investiture in 1969, has received �1m from the Wales Tourist Board (WTB) to develop it as a "world-class tourism destination".

It is hoped the large blue welcome flags draped from street lamps along main routes will encourage visitors to stop and take a stroll around.

The walled town was named a World Heritage site in 1986 along with Conwy and Beaumaris and Harlech castles.

But an action plan put forward to secure the WTB grant said authorities had to make more of its prestigious status.

A Gwynedd council spokesperson said the banners were the first project to come out of the grant approved last December when the town was earmarked as a Regional Tourism Growth Area.

The town already attracts over 100,000 visitors but there is so much more that can be done Dafydd Jones, Gwynedd council

The aim is to lure visitors to the town by making them aware of its status and heritage.

Gwynedd marketing officer Elinor Raw said: "We have put them up on the two main roads into the town so that traffic that bypasses the town realise this is a World Heritage site and stop to visit.

"There are other, harder projects in the pipeline to promote the town," she added.

"The money will also be used for the development of Victoria Dock and upgrading buildings and accommodation facilities in the town."

Roman fort

A WTB spokesperson said the aim of the fund was to improve the visitor's experience, while also securing benefits for the local community.

The action plan put forward in the grant bid highlighted the fact that the town was not fulfilling its huge tourism potential, and not making enough of its World Heritage status.

Caernarfon castle is at the heart of the heritage site

"Caernarfon has brilliant attractions, ranging from the castle and Roman fort to the Fun Centre, cycling and footpaths," said newly appointed town manager, Dafydd Einion Jones, who is in charge of the project.

"The town already attracts over 100,000 visitors each year but there is so much more that can be done, for the benefit of local people and visitors.

The project's brief is to make Caernarfon a 'must visit' on the tourist trail.

It will concentrate of improving the area around castle square, the walled town and the main approach routes.

The banners will fly throughout the summer every year.

Banners have also appeared in nearby Llanberis welcoming visitors to 'Snowdon's lakeside village'.