Italy’s beach scene set for major overhaul

Italy’s famed beaches could soon see significant changes as Italy is preparing to open up its lucrative beach concession market to new players by 2027.

This follows a long-standing dispute with the European Union over transparency and competition rules. This shift could impact everything from the price of renting a sun lounger to who manages the beachfront bars and restaurants.

For nearly two decades, Italy has resisted EU demands to reform its beach concession system. The current setup allows beach licenses – often held by family businesses for generations – to pass from one to the next without public tender. This system, while deeply rooted in local traditions, has raised eyebrows in Brussels, with the EU accusing Italy of violating fair competition laws.

Finally, after years of legal back-and-forth, a draft bill proposes that Italy will open its beach contracts to public tenders by June 2027. This means that the businesses managing Italy’s beautiful coastlines, including bars, restaurants and sunbed rentals, could soon be up for grabs by new operators. For those running these beachside businesses, the clock is ticking.

What’s changing for Italy’s beaches?

The current draft legislation outlines that beach businesses currently operating can keep their licenses until September 2027. After that, they won’t be automatically renewed. Instead, anyone who wants to run a beach business will have to apply through a public bidding process, meaning more people can compete for the chance to manage these businesses. The government also plans to introduce compensation measures by 2025, ensuring current concession holders are reimbursed for any investments they have not yet recouped.

However, this is not a done deal yet. The reform is causing friction within Italy’s ruling coalition, and delays in its approval are possible, according to political insiders. Even though the EU first called for reform back in 2006, successive Italian governments have dragged their feet, hesitant to disrupt a system that has worked in favour of local operators for so long.

The economic side of Italy’s beaches

Italian beaches are more than just sun and sand, they’re big business. A day at the beach can set you back more than €30 for the rental of a lounger and umbrella, a cost that has sparked debate among both locals and visitors.

Italy’s beach clubs generated a massive €2.1 billion in revenue last year, according to a report by consultancy firm Nomisma. Despite this, the government received just €102 million annually from operating licenses between 2016 and 2020, according to Italy’s Audit Court. This disconnect between revenue generated and fees paid is a key argument for reform.

Critics, including economists like Pietro Paganini, argue that current beach operators have exploited their position, paying far less than they should. Paganini explained, “Competition would benefit everyone, especially in a sector that’s technically public land but is being used almost for free.” This sentiment is echoed by the European Commission, which has been pushing for a more open and competitive market for years.

Protests from local operators on Italy’s beaches

Unsurprisingly, the move has sparked protests among Italy’s beach managers. Many argue that the current system keeps costs down for beachgoers and helps preserve Italy’s unique coastal culture. They fear that opening up the market to bigger companies could lead to higher prices and a loss of the traditional family-run businesses that have long been a hallmark of Italy’s beaches.

In August 2023, beach managers across Italy delayed opening their facilities by two hours as a form of protest against the proposed changes. They worry that large, impersonal chains could take over, undermining the charm and authenticity that have made Italy’s beaches so beloved by tourists and locals alike.

For those who visit Italy’s beaches, these changes could affect both your experience and your wallet. On the one hand, increased competition might lower prices for services like sun lounger rentals. On the other, the local, family-run businesses that many have come to appreciate may be replaced by larger, corporate operations.

That said, Italy’s beaches will still offer the stunning scenery and vibrant atmosphere they’re famous for. Whether it’s a family-owned beach club or a newcomer to the scene, the focus will remain on providing a great experience for the millions of tourists who flock to the coastline each year.