Derby's transformation from a mining town to a mountain-biking mecca

How do you take an ailing town—once celebrated for its role in Tasmania’s 1870s mining boom—and trigger an economic revival so that it becomes a jewel in the state’s tourism crown? For historic Derby, the story begins with a $2.5 million grant from the Federal Government’s Regional Development Australia Fund and an initiative by Dorset Council to showcase its “hero dirt”—that beautiful alchemy of soil and moisture that creates perfect riding conditions.

What started in 2015 with the launch of the Blue Derby Trail Network—20 kilometres of single-track trails winding through temperate rainforests and along picturesque streams—is now one of the world’s premier destinations for mountain bikers. The network now spans more than 125 kilometres of trails and welcomes more than 80,000 visitors each year—a success story that has seen Derby transform into a bustling tourism destination teeming with restaurants, accommodation and guided tours.

A luxury mountain-biking experience

Tara Howell is the director of Blue Derby Pods Ride, a luxury multi-day mountain-biking experience she runs alongside her husband, Steve.

“It took my husband, Steve, two years to convince me to try mountain biking,” says Tara. “Not only did I fall in love with the sport but I was just as enamoured with Derby, a quaint little town only local mountain bikers seemed to know about initially. Some talk about its rich basalt soil, which is super grippy and fun to ride on, and others are all about the deep, dark rainforest you ride through. I think it’s the perfect combination of natural beauty and hero dirt; there’s nowhere else like it in Australia and very few around the globe.

“We were in our mid-20s when we made the leap but the risk has paid off.” 

“We started thinking about a luxury mountain-biking experience as soon as the council announced plans to build a series of trails. We knew immediately that the destination would take off so at the same time construction began on the trails, we signed a lease and developed luxury pods among the trails so that, like a ski-in, ski-out resort, you’re only 10 metres away from the action. We launched Blue Derby Pods Ride when the trails opened in 2015. Guests arrive with only their clothes and we take care of everything else, from bikes and gear to gourmet food. 

“Steve and I were in our mid-20s when we made the leap but the risk has paid off. It was a slow launch but Derby’s tourism is now thriving. Sudden popularity can be disastrous for some towns but I’m proud that Derby still maintains a village feel. The only difference? The number of bikes you see parked along the main street.”

From a ‘ghost town’ to a ‘revitalised region’

Emmet McGleenan is a CommBank agribusiness executive taking care of primary producers in Tasmania’s north-east region.

“When I moved to Launceston five years ago, Derby was the kind of place you drove through on your way to somewhere else,” says Emmet. "Opportunities to stop for a coffee or a bite were pretty limited and away from the trails, it was still a bit of a ghost town. Today, Derby feels like another town entirely. There are cafés, shops and pubs, of course, but there’s also an enthusiasm that wasn’t there before. I think the shift to a more fun, outdoor lifestyle has played a huge part in lifting community morale.

“As an agribusiness banker working with primary producers, you could say I’m removed from the tourism-based businesses that we’re now seeing pop up in and around Derby but my clients are enjoying a revitalised region, too. As tourism increases and more money is poured into infrastructure and facilities, it allows farmers to have better accessibility to local shops, restaurants and pubs. Does it put extra money in their coffers? Not exactly but it makes connecting with the community a little easier.

“Many Tasmanian towns are trying to replicate Derby’s success by opening their own mountain-biking trails but you’d be hard-pressed to get close to what Derby has achieved. Had you told me when I moved to the region that I’d be stopping by Derby when I’m on my way to an event or to meet with a client, I would never have believed you. Now I encourage friends and family to appreciate this part of Tasmania from a different angle.”

Wellness by the lake

With post-ride recovery in mind, Nigel Reeves founded Floating Sauna Lake Derby, a pioneering service in the region’s wellness space.

“It’s funny how a single experience can change the course of your life. For me, it was discovering how much my body ached after a mountain-biking session with my sons,” says Nigel. "Those aching muscles got me thinking that a wellness experience here in Derby would be appreciated by mountain bikers who’d like a post-trail recovery tool that wasn’t designed exclusively around going to the pub every night.

“When I first expressed my desire to build a woodfired floating sauna on the lake, some people thought I was crazy but I couldn’t be deterred. I built it by hand over eight weeks in 2018, with the help of a retired builder mate and an 18-volt hand tool. When we launched and customers began walking in—at first a trickle then a flood—he was the first to say, ‘I’m so happy I was wrong. This is the best idea I’ve ever seen.’ Luckily, everyone else seemed to love relaxing in a 90-degree cedar wood sauna overlooking the lake before taking a plunge in 10-degree water.

“I was able to quit my office job just two weeks after Floating Sauna Lake Derby opened and I’m currently in the process of launching another on Canberra’s Lake Burley Griffin as well as planning a wellness retreat on a hill overlooking Lake Derby. 

“When I walk through Derby now, I can’t believe the change that’s taken place. Obviously we have our reputation as one of the top mountain-biking destinations in the world but we also have plenty of new food offerings, accommodation options and tourism experiences across different price points. There’s room for more and I encourage young entrepreneurs to think about what we’re lacking and take a risk in starting a new venture. Derby doesn’t just have to be about tourism but about creating a successful way of life.”

Giving back to the community

Chris Cafe is the chairman of the Blue Derby Foundation, a not-for-profit that raises funds to maintain the Blue Derby Trail Network.

“When I first came to Derby in 2017, there was only one place to eat, two pubs and not a whole lot by way of accommodation,” says Chris. "Even then, the trails were unlike anything I’d ever ridden before and I could see that, with the investment the local council was making in developing them, the whole town was about to go nuts. I came back with my wife six months later to buy two blocks of land and build four separate accommodations: Hill Street Blue, Hill Top Cabins and Lake View Derby to rent out and one for my family to enjoy.

“The Blue Derby Foundation was developed five years ago to take over the fundraising aspect of the trails from the council. Building the trails is one thing but keeping them well-maintained is another altogether. There needs to be enough in the kitty to employ a maintenance crew as well as subcontractors when major work needs to be undertaken. I feel fortunate to be able to give back to the community where my business—and many others—are thriving because of these trails.

“Derby is changing all the time. A few years ago, most of the visitors were groups of men but now we’re seeing more women and families. I predict that in a few years’ time, we’ll have plenty more offerings in the family getaway market as mums and dads bring their kids for a week-long nature getaway.”

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