Published Friday, 06 September 2013
The industry in the city is currently experiencing its most successful year on record.
New figures show there has been a massive increase in hotel bookings as visitors from around the world flock to the city to sample the celebrations.
So far this year hotel room sales have rose by over 26% with more reservations made than in anywhere else in Northern Ireland.
Linda Neill from the City Hotel told UTV: "We have noticed an increase in guests staying with us and in overall business into the hotel this year and I think a lot of it is due to City of Culture year.
"Right from the start of January we've noticed an increase in the number of people coming in and in inquires so it's been a fantastic year."
It has been a spectacular year in Derry with the City of Culture celebrations attracting visitors in their droves to the historic walled city.
However, the latest figures don't include the number of day-trippers and visitors who have stayed in local bed and breakfasts.
But the dramatic rise in hotel room sales is evidence of a tourism industry that has been transformed.
Odhran Dunne, from the Derry Visitor and Convention Bureau, added: "It's overnight visitors that are so important to the local economy by staying in hotels and B&Bs and enjoying the nightlife the theatre and the experience of the city.
"And if they spend more that will have an economic impact and create more jobs."
Sinead McLaughlin, from the city's Chamber of Commerce, said: "In the past 15 months over 40 new business have opened up in the city centre alone.
"These are a range of businesses particularly in the food and hospitality sector.
"Obviously when more people come here there is more for them to do."
There are still four months of City of Culture left to go and visitor tallies look set to continue to break records.
The challenge now is to make sure tourists keep coming long after the final curtain of this cultural year.
© UTV News