The Cradle Mountain Discovery Park, located on Cradle Mountain Road at the entrance to the national park, will be upgraded in stages to include a range of new accommodation options.

Work has started on site and the first stage is expected to be completed in the coming months, and the Kentish Council general manager Gerald Monson said the project is a "vote of confidence" in the region.

Grant Wickens is chief executive of the G'day Group, which owns Discovery Parks, said the company was hoping to "capitalise on a wave of enthusiasm for Australia's iconic nature experiences".

Throughout the pandemic visitor numbers to national parks has increased as has enthusiasm for outdoor experiences following prolonged lockdowns.

"Already, our Cradle Mountain cabins are highly sought-after and this development will help to attract a new brand of traveller," Mr Wickens said.

"[Visitors are] looking for eco-experiences, activities such as hiking, canoeing, native animal experiences as well as the fabulous food, wine and history Tassie is famous for."

Mr Wickens said a later stage of the park development was for a luxury "eco-friendly glamping resort" to be built among on the edge of the World Heritage Listed national park.

"[The development] includes a vision for luxury nature experiences with premium forest studio cabins on stilts connected by elevated, lit boardwalks."

The first stage, a $5.3 million development, is due to be completed in March and will add 10 new cabins and 40 camping sites to the development.

Mr Wickens said the development will also include accessible cabins suitable for those with mobility needs or disabilities.

Mr Monson said the development was approved by the Kentish Council in 2021.

"It was a vote of confidence in the Cradle Mountain area and it complements the work that has been happening with the visitor centre and at Dove Lake," he said.

He said there was other private developments happening in the area to cater to increased visitation, and it was pleasing to see private investment matching the public money being spent in the area.

"While it is pretty tough going at the moment, they are planning for when tourism does open up and people feel safe travelling and going out."

He said the council, too, was a supporter of the tourism industry.

"We're also trying to do our part during this time to get ready for the future when everything opens up again."