New Yorker Vasiliki Carson steps off Derry's open top tour bus with a beaming smile.

This is her first trip to the city, and she's impressed. "That was really fantastic," she says. "I didn't know the city had such a rich heritage behind all the news headlines."

Two sightseeing buses now compete for a share of Derry's tourism sector. Local firm Open Top Tours began operating in May, 2004, and a global company, City Sightseeing Tours brought a franchised bus service to the city soon after.

Having visited several European countries, Derry man James Wray saw a gap in the city's growing tourism market for a tour bus service. James travelled to London, purchased a second-hand bus and ferried it over to the city. After some minor signage alterations and a fresh lick of paint, Open Top Tours was ready to welcome its first passengers on board in May 2004.

Days after Mr Wray's bus began operating, City Sightseeing Tours entered the Derry market. Franchisee Ronan McNamara has been a tour guide in the city for years.

"It's like the old saying that you wait all day for a bus and then two arrive at once. In Dublin there are five different competitors. Competition is good and it's healthy."

The tourism sector in Derry has been growing gradually in recent years. Political stability has brought with it economic investment, city centre hotels, and more visitors. Some 41,944 people called in to the Derry Visitor and Convention Bureau last year, an increase of 19 per cent on 2003.

Ronan McNamara says that while the situation is improving, a "fear factor" remains, and "not only among tourists from other countries. Many people closer to home are pretty wary of crossing the border too."

Derry's living history is unavoidable. Guides explain the religious divide to passengers and point out political murals as the bus weaves its way through working class Protestant and Catholic areas.

Yet both City Sightseeing and Open Top Tours are keen to give passengers a more comprehensive presentation of the city. Tour guides on board buses point out ancient places of interest, offer environmental facts and dispense anecdotes about everyday life in Derry. "A lot more happened here than just the Troubles," says James Wray. "Derry's history dates back to AD 546 , and tourists are surprised and fascinated by it."

Both operators have noticed many local families boarding the buses to find out more about their city. According to James Wray, "there's a novelty aspect too - lots of the children wouldn't have been on a double-decker bus before".

Karen Houlahan of the Derry Visitor and Convention Bureau hopes the city will be seen as a safe destination for visitors. "Not everything is rosy in the garden, but things are moving in the right direction."