Italy is poised to revolutionize its beach management system, with plans to open up lucrative contracts for beach facilities to public tenders by June 2027. This significant shift, detailed in a draft bill, comes as a delayed response to the European Union's 2006 directive urging Italy to increase competition in the sector.
The proposed legislation, expected to be reviewed by Prime Minister Giorgia Meloni's cabinet, would maintain current business licenses until September 2027. A separate decree, to be issued by March 2025, will establish compensation guidelines for operators who lose their concessions. The compensation amount will be based on the value of investments made and not yet amortized at the end of the concession period.
This reform targets Italy's longstanding practice of family-controlled beach licenses, often passed down through generations. Critics argue this system has unfairly excluded new entrepreneurs from a significant business opportunity. The beach club industry in Italy is substantial, generating 2.1 billion euros in revenue in 2023, according to consultancy Nomisma.
However, the proposed changes face resistance. On August 9, beach managers in parts of Italy protested by delaying their openings by two hours. They contend that family-run operations keep costs down for beachgoers and preserve local traditions, expressing concerns about large chains potentially taking over Italy's 7,500 km of coastline.
The issue remains contentious within the ruling coalition, potentially delaying the approval of these measures. Italy has been slow to implement the EU's 2006 order to put its 28,000 beach licenses up for public tender, despite pressure from Brussels.
Currently, tourists can pay over 30 euros daily for beach amenities like loungers and umbrellas. The government's income from operating licenses averaged 102 million euros annually between 2016 and 2020, according to Italy's Audit Court.
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