The Tasmanian caravan park industry is in rapid decline with growing fears that there may be as few as 10 parks left on the Apple Isle in as little as eight years.

In less than a decade, almost 25 percent of the state's parks have been shut down following the rise of free-camping sites.

Campervan and Motorhome Club of Australia CEO Richard Barwick says the caravanning sector needs to "adapt and change" to move with the times, and offer lower-cost camping to align with the reduced usage of traditional caravan park facilities.