Laurie Paolicelli, director of the Chapel Hill/Orange County Visitors Bureau, says our area is facing increasing competition for tourist dollars.

Paolicelli told members of the town council that competition from other counties combined with the economic downturn are having a negative impact on Chapel Hill’s tourism industry. She said the Visitors Bureau is looking to advertise in niche markets to expand the appeal of Chapel Hill beyond the traditional draw of UNC events like basketball games and graduation ceremonies.

Using ad campaigns in national magazines, Paolicelli said Carrboro, Hillsborough and Chapel Hill can develop a reputation as a destination for lesbian, gay, bisexual and transgendered travelers, despite the widespread perception that North Carolina as a whole is not a gay-friendly state. She touted a recent symposium of gay travel agents as a stepping stone towards that goal.

Paolicelli also suggested rural and urban bicycle tours could be a potential draw for cycling enthusiasts, and a way to spread tourist dollars around the county. But, she told the council, the number one request she hears from visitors is for a guided tour of Chapel Hill and Carrboro.

Members of the town council responded eagerly to this suggestion, directing the town manager to return with preliminary cost estimates to consider during this spring’s budget negotiations.