Dorset council's general manager has outlined a long-term vision for Derby after returning from a two-week "fact finding mission" in Whistler, Canada.
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The trip saw general manager Tim Watson spend two weeks in the Canadian municipality - a resort town well known for its mountain biking tourism - on a council budget of $5000, and personal out-of-pocket expenses.
He said the reasons for the trip were to learn about Whistler's mountain bike tourism business model, how the municipality managed housing affordability and supply, and to gauge Derby's trail quality against an international competitor.
Mr Watson said Whistler, which he described as the "Mecca of mountain biking in the world", was the best place to research new business models for Derby.
"Derby is at least five years ahead of anything else in Australia," he said.
"There was nothing in Australia that was going to provide me with the information I needed to determine where we position Derby both nationally and globally".
Mr Watson said the trip had provided "priceless" information for Derby's future, including confirmation that the town's trails were "close to the best in the world".
Over the next 20 to 30 years, the town's development into Australia's premier mountain biking destination, he said, was "inevitable".
"Derby will evolve into a resort town, there's no doubt about it," he said.
However, despite the town's popularity as a tourist destination and the economic benefits it has supplied for the council and community, Mr Watson said residential housing supply remained an issue.
He said the council would consider some of the "initiatives" Whistler had adopted, and flagged a 24-hectare piece of land on the upper slopes of Derby which would be "earmarked for the expansion of the town for residential purposes".
But he said the Blue Derby Foundation - a not-for-profit community group of residents and business owners - would be closely consulted with.
The maintenance of the trails, which cost about $400,000 per year, is funded through tourism, sponsorships, the Derby booking system, and financial contributions through local businesses and residents, Mr Watson said revenue generated through rates was not included in maintenance costs.
The state government has invested about $1.1 million into Derby's bike trails, but Mr Watson said he estimates they will recoup $2-3 million by the end of this financial year, and receive a dividend of about $100,000 a year through land tax.
Although total investment into Derby from outside investors is estimated to be at about $30 million, Mr Watson said he expected the net economic benefit to the state to be about $60 million a year.
Mr Watson said he would inform councillors of the full extent of his trip in Dorset council's monthly meeting this week.
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