"We warmly welcome visitors to share in our beautiful slice of paradise, but we are also mindful of the impact that tourism growth can have on our local residents.
"This funding will significantly improve the experience of tourism for both locals and visitors alike, which is a big win all round."
Tourism spend in Central Hawke's Bay leapt 15 per cent from January 2018 to January 2019.
In particular there has been a rise in numbers of visitors to freedom camping site at Te Paerahi.
The increase in tourism numbers has put pressure on the existing toilet facilities and resulted in regular water restrictions including bans on using non-essential water at the height of summer.
Hastings Mayor Sandra Hazlehurst said improving the carparks at Maraetotara Falls and Clifton Beach will add to visitors' experiences.
"Managing tourism infrastructure is a big cost to meet the needs of our locals and visitors, and accessing this fund will help us enhance the experience and make it safer and more enjoyable for everyone."
General manager Tourism at MBIE Iain Cossar said tourism is a key part of Hawke's Bay's future prosperity.
"This latest investment will fund projects that will help improve critical tourism infrastructure, help communities to make the most out of tourism, and give international visitors and Kiwis a better experience.
"The New Zealand-Aotearoa Government Tourism Strategy sets out a number of priorities to make sure that tourism supports thriving and sustainable regions across New Zealand.
"This includes making sure the regions have the ability to provide critical infrastructure as well as working closely with communities and local government to shape what tourism can mean for them."
In the year to the end of May 2019 tourism bought $660 million into the Hawke's Bay economy.
