Nelson city has received an almost $500,000 government grant for a new recreation hub in the Maitai Valley.
The money from the Tourism Infrastructure Fund will help build a planned hub for people taking part in sport and recreation in the wider area, including walkers and mountainbikers.
An economic impact study showed mountain biking was significant for Nelson, in terms of direct spend and job creation.
The 2018 study by Business and Economic Research Ltd (Berl) assessed potential for $17.1 million of new and retained spending each year as a result of the mountain bike trails in the Nelson-Tasman region.
Within 10 years it was set to add almost $40 million in GDP to the local economy, and generate 538 full-time jobs.
The Maitai Recreation Hub was prioritised in the council's Long Term Plan.
It was to be developed in stages following completion of a recreation management strategy by land owner Ngati Koata.
The chief executive of the iwi's commercial arm, Koata Ltd, said recreational activities were important to the city's economy, attractiveness and health.
Hemi Toia said it was also important to ensure that the planned hub was suitably located to ensure that the land owners' rights were respected and acknowledged.