The sale of 'racist' golliwog dolls online and in Australian shopping centres has sparked outrage among tourists and indigenous advocates.

Hundreds of thousands of the controversial toys are sold each year by manufacturer Elka, which ships them across Australia.

Indigenous advocate Henrietta Marrie said the sale of the toys was 'a huge problem'.

'It's laughable this is happening in the 21st century,' she told the ABC.

The sale of 'racist' golliwog dolls online and in Australian shopping centres has sparked outrage among tourists and indigenous advocates

'It's the look, the connotation and the naming which sends a negative measure. Years ago it was an insult and it's still insulting to us. It gives a negative image about who we are and what we can do.'

Ms Marrie said the golliwogs should be taken off the shelves, and people should be educated as to why they are inappropriate toys.

She encouraged people of all backgrounds to speak out and voice their disapproval at the toys being sold in Australia.

Soyla Echeverria confronted management at a souvenir store in a shopping centre in far north Queensland while on a working holiday from Melbourne after seeing golliwog toys for sale.

'I was extremely surprised. I felt very ashamed to be Australian, to come here as a white person and see that, I mean it's 2018,' she said.

Indigenous advocate Henrietta Marrie said the sale of the toys was 'a huge problem'

Elka national sales manager Jan Johnco defended marketing the toy, saying they had no racist connotations.

'Traditionally, in my childhood and most certainly my mother's, everyone had a golly and it was a beloved doll, it was so wholesome and lovely,' she said.

'People need to get a grip, it's a doll. We're talking about an innocent, benevolent, beautiful black doll.'