CARAVANNING and camping pour billions of dollars into the New South Wales economy, according to the state's Tourism Minister Jodi McKay.

In fact, the outdoor life remains one of NSW's fastest growing tourism sectors.

"A third of all nights spent camping or caravanning in Australia is spent in NSW making it the nation's favourite camping state," the Minister said at the launch of a joint $200,000 government and Caravan and Camping Industry Association (NSW) campaign.

"The NSW South Coast, Mid North Coast and Northern Rivers regions represent the three top camping destinations in the country."

She said it was the government's biggest partnership with the CCIA and recognised the growing appeal of camping holidays for families on a budget.

"Camping and caravanning is an Aussie holiday tradition and it provides families with a great range of holiday options from beachside to inland, all at a moderate cost," Ms McKay said.

The sector had been growing steadily every year for the past 12 years.

"In the past five years alone we've seen eight percent more camping and caravanning visitors and seen almost 19 percent more nights spent in caravan and camping grounds around NSW.

"Increasingly this kind of holiday is becoming an important economic contributor for NSW with campers injecting almost $2 billion into the State's economy in the year ending September 2010."

CCIA chief executive officer Barry Baillie thought the resurgence of caravanning and camping over the past decade was due to the quality of holiday parks in NSW, the reasonable cost of a camping holiday and the vast array of RV products on offer.

"Caravanning and camping holidays offer something for everyone, something to suit every budget and countless adventures that can be enjoyed by the whole family," he said.

"The lifestyle of experiencing the great outdoors and the true camaraderie that only a caravan and camping holiday has to offer cannot be matched.

"Over the summer holidays we saw many coastal holiday parks along the entire NSW coast booked out, many of them months in advance.

"We are pleased to be working with Tourism NSW to highlight this fabulous sector and believe this campaign will go a long way towards encouraging even more people to hit the road and experience the beauty of NSW first-hand."