THE Blue Dragon Mountain Bike Challenge will bring business and tourists to the Derby area, locals say.
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The event will be held along the MTB bike trails at Derby, overlooking breathtaking views of the small North-East town.
With hundreds of cyclists expected to take part, the event will encourage its participants to stay at local accommodation options.
Lisa Barrett, of Branxholm IGA, regularly takes bookings for the Branxholm Camping Ground.
She said the area had already benefited from the proximity of the MTB trails to Derby.
"It's a good thing for our town to have the trails here. It brings in business and we get more people through the town," Ms Barrett said.
She said a few earlybird cyclists were already staying at the camp ground, with more to come.
"There are a few B&Bs that have got extra customers because of the event and the bike trails too."
She said the event was a unique way to help businesses who might otherwise struggle.
"It's a good thing to have in our town for once, rather than having it in the city," she said.
Dorset mayor Greg Howard said the event was likely to draw a few thousand people to Derby and the surrounding towns.
"Signature events like this bring that extra level of people and anyone who's not open for business that's in the tourism trade or entertainment and catering trade in Dorset is probably silly, to be perfectly honest," Cr Howard said.
"It's one of those opportunities where you can just make a killing for a couple of days."
He said the MTB trails added a unique attraction to the small town, and had been attracting many tourists every weekend in summer.
"The bike trails have been doing extremely well anyway, we're seriously happy about just how well they are going," he said.