The popular Inskip Point beach has become a bit smaller with a 40m wide sinkhole opening up and swallowing the beach before holiday-makers' eyes.

Cooloola Sails' Wayne Dean had a front-row seat to the beach's disappearing act, which he said happened about 1.30pm Thursday in an area where cars and vehicles were being loaded onto a barge shortly beforehand.

Mr Dean had been packing up his own vehicle when it started.

The hole opened up where vehicles had been driving onto the barge shortly beforehand. Photo: Contributed by Wayne Dean
The hole opened up where vehicles had been driving onto the barge shortly beforehand. Photo: Contributed by Wayne Dean

"We watched it for about 15 minutes as it got bigger and bigger," Mr Dean said.

"Quite often it happens at night and you don't get to see it."

Footage captured by Mr Dean shows the beach crumbling into the ocean.

Tyre tracks left, on the sand by vehicles driving onto the barge, appear to drive straight into the ocean as a result of the hole's appearance.

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