CARAVANNERS have been reassured that giant excavators and other heavy machinery are not sounding the death knell for a popular Sunshine Coast caravan park.

Major earthworks sparked concerns over the future of the popular Tripcony Hibiscus Holiday Park at Caloundra in Queensland.

But it has been confirmed that the waterside holiday destination is undergoing a major upgrade which will improve facilities for travellers and other holidaymakers.

Concerned caravanners contacted Caravanning News after seeing major earthworks at the nine-acre park on prime land opposite the town's Sunland shopping centre.

Land-hungry redevelopers have had their sights on the site for many years, with rapid development on the Sunshine Coast in the past 25 years creating a land squeeze for prime waterfront accommodation.

At least eight caravan parks and some council camping reserves were closed to make way for swish housing estates.

But redevelopers were blocked from getting their hands of the Tripcony Hibiscus Holiday Park site in 2009 when the Queensland Heritage Council announced that the privately-run park would be heritage listed, effectively securing its future as a low-cost holiday destination. The operator was also given a 30-year lease.

It was the third Sunshine Coast caravan park to be added to the register, the others being Cotton Tree and Noosa River ... both operated by the Sunshine Coast Regional Council.

A site spokesman said upgrading on the Caloundra CBD side of the site is expected to take about five months and will result in about 45 new tourist pitches on Tripcony land.