The Museum of Old and New Art — or MONA — triggered a stunning economic revival in southern Tasmania, but the "MONA effect" had little impact in the state's north.

Now the north has its own version of MONA injecting millions into the economy and attracting a lot of new young residents.

The Blue Derby mountain bike network opened in 2014 and last year 30 thousand riders from around the globe visited to ride what is being touted as one of the hottest trails in the world.

One of the world's best designers was hired to build 85 kilometres of trails. ( Facebook: Blue Derby Mountain Bike Trails )

Derby is in the Dorset council area, which covers the north-eastern tip of the state.

Council CEO Tim Watson estimates the economic impact of mountain biking on the region is between $15 and $18 million dollars.

"We're talking really high yielding visitors. They are the tourists that you want as there's no limit to what they will spend."

In just a few years Derby, the tiny town that is home base for the trails, has gone from ghost town to boom town. It was on its last legs five years ago.

The region's traditional industries of agriculture and forestry had suffered big hits with the closure of a vegetable processing plant and two timber mills.

"The only shop was run by the council," Mr Watson said.

"There'd be days when it would turn over less than $100 a day in the depths of winter, so Derby was well and truly on its knees."

A sign showing the different bike trails riders can tackle at Blue Derby. ( ABC: Pip Courtney )

Derby's future changed when several mountain bike enthusiasts suggested it was a perfect place for trails.

"Initially I was pretty sceptical because I didn't know a lot about it," Mr Watson said.

"I was a road cyclist but didn't understand mountain biking, and then I had a closer look, and realised it was a good thing."

Key to the plan was the support of the manager of the land, Forestry Tasmania, for the proposal to have trails in a working forest.

Council secured a $2.5 million grant from the Federal Government's Regional Development Australia Fund and one of the world's best designers was hired to build 85 kilometres of trails.

"The total project came in just under $3.1 million, so it's a premium quality product and if you want great trails you have to spend the money," said Mr Watson.

The trails opened in 2014 and visitors from around the world have flocked to them, attracted by the beauty of the state forest, meticulously maintained trails and the magic ingredient — what riders call "hero dirt".

"Hero dirt is the equivalent of a powder day for a skier — it's basically when the dirt's just perfect," said Revolution Magazine editor Mike Daly.

Mountain bikers Charles Finney and his son Reid say the Blue Derby trails are "world class". ( ABC: Pip Courtney )

"It's not too dry, it's not too wet, you get really good grip in the turns and everything, it's just rocking.

"The guys who built these trails knew what they're doing — all the trails here are amazing.

"The newer ones built for the Enduro World Series are another level."

New South Wales rider Charles Finney said the trails were "absolutely world class".

"I've ridden quite a few places — Queenstown, Rotorua, and the US, and these are as good as any of those, if not better," he said.

No longer a real estate dead zone

Derby was ill equipped to deal with so many tourists, so early investors, mostly mountain bikers, have set up accommodation and food and bike hire businesses.

The town is no longer a real estate dead zone.

"There have been 49 property sales in 18 months, or about $5 million worth of turnover. It's a real property boom and [it's] very hard to buy anything," said Mr Watson.

Despite having 30 Airbnb-listed properties, Derby is still desperate for more beds.

Mountain biker Ben Jones and his wife Anastacia moved from Sydney to set up an accommodation business.

"I saw the money the Federal Government and State Government were putting into it and decided I'm going to put my money in there too and back them," said Mr Jones.

"Riding the trails myself I believe Blue Derby is pretty special."

The mountain bike network opened in 2014 and last year attracted 30 thousand riders from around the globe. ( ABC: Pip Courtney )

Buck Gibson was an early investor, setting up a bike rental shop and a cafe.

"I just had an inkling mountain biking was right for Tassie," he said.

"Mountain bikers have got energy and enthusiasm and they bring an energy to a town. That was what I was hoping would happen and it has."

Mr Gibson said the trails have had a positive impact on local teens.

"They're being told by a lot of our visitors 'you are so lucky to live here', and it's something their parents never ever heard, never, and these kids are hearing it and you can just see the pride that they've got in their town.

"They want to be here, they want to live here, they want to work here, and they want to be part of the action."

The trail network is being extended 200 kilometres down to the east coast seaside town of St Helens.

"The north-east corner of Tasmania will be the mountain bike mecca of Australia and on that scale we can compete with any destination in the world." Mr Watson said.

"Derby is fast becoming one of the tourism icons in Tasmania, there's no doubt about it."