A $600,000 upgrade at and around Nugget Point will be conducted by the Department of Conservation (Doc).
It is intended to relieve pressure from the growing number of tourists who flock to the area on the Catlins coastline near Kaka Point.
Doc ranger Rick Ratcliff said the headland was a victim of its own popularity. A track counter installed last year revealed about 60,000 people made the walk to the lighthouse.
"This means that, at times, the car park and penguin viewing hide are overflowing. This can cause safety issues, disrupt the wildlife and compromise the visitors' experiences.
"Basically, the current facilities aren't coping well with the number of visitors, especially during the busy summer months," he said.
Doc has been planning the upgrade for the past 18 months.
The penguin hide at Roaring Bay will be replaced with one twice as big, the bus car park will be expanded to five times its present size and will become the park for all vehicles.
The road beyond this will be gated for safety and the top car park, used by small vehicles, will become a grassed area with picnic tables and interpretation panels.
A three-stall toilet and track to the lookout point off the new main car park will be built as well. The track leading to the lighthouse will be improved with resurfacing work and seats installed along the way.
Mr Ratcliff said a major project would be replacing the current viewing platform with a split-level cantilevered structure providing views both north and south.
The project will be done in two phases.
The first starts on November 1, running until early December. This will focus on the lighthouse track, the new main car park and associated new track.
Work will stop over the Christmas holidays and the second phase, beginning on January 19, will include the new toilets, viewing hide, picnic area and lighthouse viewing platform.
Mr Ratcliff hoped work would be finished by the end of March 2009.
A growing attraction
• Nugget Point obtained its English name from the early whalers and sealers who thought the offshore sea stacks were similar in shape to nuggets
• It is a prominent headland 8km from the coastal township of Kaka Point and 23km from Balclutha.
• It is regarded as a premier site for coastal wildlife with yellow-eyed penguin, blue penguin, spotted shag and other species often breeding.
• Small numbers of New Zealand sea lions also frequent the area.
• Alexandra firm Breen Construction Co Ltd has won the contract to upgrade the area.
• Doc predicts tourism will increase by 4% each year in the Nugget Point area.