The Government's being warned New Zealand won't be able to cope with the explosion of freedom camping if it doesn't act soon.

LISTEN ABOVE: Federated Farmers spokesperson Katie Milne spoke to Larry Williams

Federated Farmers says popular freedom camping sites have been overwhelmed with record tourist levels, and the Government's doing little to fund the needs of small communities who aren't coping.

Spokesperson Katie Milne said the $12 million the Government has so far allocated to address the problem won't be enough to fix things.

She said signifcant investment and a good plan is needed for districts to cope.

"Tourism numbers are expected to double, and then of course they will double again, so this problem is not going to get smaller, it's going to get bigger and it's going to be happening really quickly.

"It would be a great thing to see the government front foot it and throw some more money at it, before it becomes big problem."

Ms Milne said more funds are needed for infrastructure, to make sure everyone has a good experience while they're in New Zealand.

"The amount of rubbish that gets left behind is starting to be an issue and we don't want this to get any worse because then people start putting on blog sites, getting the message out there, that New Zealand is not such a cool place to go and visit and that's the last thing we want. Tourism is vital to our economy."