CARAVANNERS play an important role to New South Wales' economy, a state conference heard.

Delegates at the Caravan and Camping Industry Association of NSW (CCIA) annual conference in Sydney were told that NSW was Australia's favourite destination for caravanners and campers.

Tourism NSW executive director and general manager Lyndel Gray said the state now enjoyed 31 percent of the nation's caravanning and camping nights.

The economy and destination appeal were driving more first time campers into the market, he explained.

Since 2006, regional NSW had shown a 10 percent rise in caravanning and camping compared with a six percent slump for other forms of accommodation.

Mr Gray pointed out that regionally 15 percent of domestic visitor nights were spent in caravan parks or commercial camping grounds, with families and retirees generally opting for this type of holiday.

The average length of stay was 4.5 nights, he added.

A total of 9.3 million domestic visitor nights were spent camping in NSW with a staggering $1.3 billion being spent by visitors.

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