The infrastructure project includes a concrete two metre wide accessible path, new accessible BBQs and picnic shelters, improvements to the car park and a gravel path connecting Ray Brooks Reserve to the Basin Walking Trail.

Representatives from Shoalhaven City Council, mayor, councillors and Minister for Local Government were at the Sanctuary Point park to announce the start of construction.

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Minister for Local Government and South Coast MP Shelley Hancock was delighted council had started work on the project.

"We've seen a record number of tourists invade the Shoalhaven over the last few weeks and it is really critical because it is places where people can visit and the community can be proud of what they have," Mrs Hancock said.

"It's a beautiful natural facilities but we need more upgrades of facilities in a place like this, it's a little degraded.

"It is for the locals to enjoy and the tourists."

Shoalhaven Mayor Amanda Findley said the projects would make a big difference to local communities.

"It's basically to inject some money into some of our tired areas that could really do with a spruce up," Cr Findley said.

"With over $400,000 going into Palm Beach it's going to make a really lovely difference to a beautiful location."

The Palm Beach project is the first of seven sustainable tourism projects undertaken by Shoalhaven City Council with $5.3 million from the NSW Government. Other projects include facility upgrades at Hyams Beach, expansion of the Murramarang Coastal Walk, extensions of the Basin Walk Track and boardwalks at Bherwerre Wetland.

Mrs Hancock said she expected the other six projects to be underway soon.

"I think council are moving really quickly on these projects," she said.

"It's also a million dollars from council so we are working collaboratively with them."