Acting convener of the Port Fairy Bicycle Action Group Paul Bucci said the town had the potential to become a cycling tourism destination.

Mr Bucci said at the heart of this could be a bike circuit around the town.

"This would include cycling access along the western side of the river, along the current walking track by East Beach and over the river on a new boardwalk linking Connolly Street and Sandspit Road to connect the new circuit with the current rail trail," Mr Bucci said.

"Substantial funding would be required to create this new circuit but we believe the rewards would also be substantial."

Mr Bucci said the bicycle action group was formed in 2018 with a view to create a safe environment for cyclists in and around Port Fairy.

He said the group had been pro-active in its quest for a safe passage for bicyclists, having addressed the Port Fairy Tourist Association, both primary schools in the town and councilors and senior officers at Moyne Shire Council.

The group has plans to talk to the Port Fairy Folk Festival committee.

Mr Bucci said during these talks, his group had highlighted what it sees as glaring safety issues.

"The first is the need to address significant safety issues in and around town," he said.

"These include potholes, gravel and tree detritus on road edges, lack of signage, lack of clarity in relation to shared pathways, road crossings, especially on the highway, and the dangerous nature of the road bridge over the river."

He referenced a Letter to the Editor in last week's Moyne Gazette from Port Fairy resident Clare Atkins, who was critical of the town's footpath network.

"While Clare was talking about the need for a footpath strategy to build and link paths, her comments apply equally to paths and trails for cyclists, motorized wheelchairs, scooters and the like," he said.

Mr Bucci said research showed that a perceived lack of safety was a major barrier to participation in cycling.

He said the Port Fairy community could lead the way in breaking down those barriers.

"Research has shown that 45 per cent of head injuries in children are a result of cycling and that one in four children, and as many as three in four adults, are obese," he said.

"We believe Port Fairy, with its wide streets and flat terrain, would be ideal for the development of safe cycling conditions and could be a model for other small towns around the world."