The annual Yule festival is going in Middle-earth, and you know that Turbine does seasonal events well. Little will match the Haunted Burrow, but they have added a small zone for this year, in addition to returning events. It is a festival town with a bit of wintery wilderness. The G.L.O.B.E. theatre is the item not to be missed.
The event quests include a class warfare side story. The resort town is served by an unhappy underclass. You can shoo beggars and/or give them coins. To my mind, it is too blatantly emotionally manipulative to be effective. Even if it were, game mechanics mean that you cannot have a meaningful effect; you cannot make the lot of the poor worse or better, so whatever you do is meaningless flavor text. There is a hidden deed that tracks how often you donate, but you will never be able to bring the beggars out of poverty. Do what you like, and do not pretend you are a good/bad person for clicking effects that end when you close the text box. (See the guide for the one quest where you cannot get both titles.)
Kingdom of Loathing does have trackers in its holiday events that affect what happens, meaning it has more dynamic and meaningful holiday events than any MMO. Put that in your pipe and smoke it, Santa.