There will be possibility to stand with your motorhome or caravan really close to the competition, directly in the area.
You can book your spot here:
And of course you can as well find dog-friendly hotels or to use Airbnb services as Prague is well known and popular international city among turists from all over the world with great accomodation possibilities. If you choose to be closer to the competition area or to the historical center is just up to you. There is no bad choice in that case. :)