By Joshua McElwee

CASTEL GANDOLFO, Italy (Reuters) -Pope Leo will revive a centuries-old tradition on Sunday by taking a holiday at Castel Gandolfo, where residents of the lakeside town hope for a tourism boost after the late Pope Francis shunned taking a summer break.

Leo, elected pope on May 8 after the death of Francis, will spend July 6-20 an hour's drive south of Rome in the sleepy hill town of about 8,900 residents on the shores of Lake Albano.

The town's mayor and business owners hope his stay - the first by a pope in 12 years - will attract tourists hoping to see the new leader of the Roman Catholic Church.

The Vatican has owned a papal palace in the town, including vast Renaissance-style gardens, since 1596, but Francis, who shunned much of the pomp and privilege of the papacy, chose not to take vacations, spending the summer in his Vatican residence.

"Pope Leo has given us a wonderful gift," Stefano Carosi, the owner of a coffee shop on the town's main square, said. "The pope has always been important here ... because he attracts people."

Mayor Alberto De Angelis said residents were excited about the visit. "The presence of the popes in Castel Gandolfo has always meant a lot of activity, a lot of economic growth," he said.

While Leo is expected to spend most of his vacation out of the public eye, staying in a Vatican-owned building behind a gated wall, residents and tourists will have the opportunity to see him at religious celebrations on July 13 and 20.

Dozens of popes have spent the summer months at Castel Gandolfo, where it is cooler than in Rome, which has been sweltering in an early summer heatwave with temperatures reaching more than 37 degrees Celsius (99 degrees Fahrenheit).

FRANCIS LEFT 'LONG-LASTING' MUSEUM LEGACY

Francis had Castel Gandolfo's papal palace turned into a museum and opened the gardens to visitors.

Leo will not stay at the palace and the museum will remain open to the public, instead staying at another Vatican property.

Although Francis never spent the night in Castel Gandolfo, residents said his decision to open the museum has had long-lasting benefits.

Marina Rossi, owner of a mosaic studio in the town, said tourists used to come only in the summer to see the pope at one of his audiences, but now they came more frequently.

"It was more of a hit-and-run tourism, because there was the audience and then they would leave," she said. "Now there is a steady flow of tourism throughout the whole year."

Now, with Leo coming back, said Rossi, it gave the town the chance to attract even more tourists. "It's an important moment," she said. "I won't hide my happiness."

As for what Leo might do during his vacation, Maurizio Carosi, brother of Stefano, had a suggestion, saying he'd tell the pope: "If you want a good glass of wine, come visit with me!"

(Reporting by Joshua McElwee and Claudia Chieppa; Editing by Janet Lawrence)