Sections of Flagstaff Hill will undergo a makeover in the coming months as work begins on stage two of Wollongong City Council's Heritage Walk.
The work, which is part of council's Blue Mile master plan to improve the city's foreshore, aims to improve pedestrian access on the southern side of Endeavour Drive. It begins after Easter.
The upgrade will include the installation of new kerbing, as well as construction of a footpath, low retaining wall and new stairs.
Harbourfront Restaurant owner Angelo Scioscia welcomed the upgrade but expected the construction work to create parking problems in the short term.
"I think it's great that the council are being proactive in terms of renovating the area for visitors to make it more appealing but ... parking is already such a big issue for the area and for my customer base," Mr Scioscia said.
"So I expect during the project there are going to be some additional issues in terms of my customers finding appropriate parking."
As part of the construction process, 18 trees will be removed from the southern side of the embankment and others will be planted in surrounding areas as compensation.
The council acknowledged the work would affect parking space on the southern side of the road but said it scheduled the majority of the work during autumn and winter to minimise the effects on the community and businesses.
Work on the promenade on the north side of Endeavour Drive will begin in autumn/winter 2015.