Mr Ramsay said the $3,500 in funding would help promote the 2014 Run from the Hills running event held on the November 15.

"This exhilarating event brings great fun and a competitive spirit among participants, but it also attracts significant numbers of visitors and overnight stays in the region, which will benefit the local economy.

"The Run from the Hills event will involve runners being transported through the hills to the start of the restored Pyrenees Endurance Trail from where they will traverse the course length to Mt Avoca Winery.

"More than 400 entrants are expected for this event which should stimulate a significant number of overnight stays within Avoca and surrounding areas. That is good news for the local hospitality industry," Mr Ramsay said.

In 2011-12, the tourism industry contributed an estimated $949 million to the Grampians economy (22.2 percent of gross regional product) and employed approximately 8,300 people (18.1 percent of regional employment).

Minister for Tourism and Major Events, Louise Asher, said the Victorian Government has allocated $8,500 to support three cycling and running events in hilly areas across Victoria, Dirty Gran Fondo, Double Cross and Run from the Hills, which will promote fitness and the regional hospitality industry.

The grants and the events also conform to and reinforce Tourism Victoria's cycling tourism strategy.

"Tourism to Victoria is worth $19.1 billion and employs 200,000 people. Events such as the 2014 Run from the Hills assist in encouraging dispersal and longer stays in regional Victoria," Ms Asher said.

Run from the Hills takes place on November 15, 2014. For more information refer to: www.bighillevents.com.au