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Italy has approved new rules to put lucrative concessions for beach clubs up for bidding by June 2027, responding to pressing demands from the EU to open up the sector to new players.
Under the new legislation approved on Wednesday by the right-wing government led by Giorgia Meloni, existing beach licenses would remain valid until September 2027.
The deadline could be further postponed to March 2028 if there are “objective reasons” to delay the tender process, the government said.
The compromise seeks to address complaints by existing operators who risk losing their concessions and would be entitled to compensation paid by the new holders.
Tourists can sometimes pay more than 30 euros a day to rent loungers and umbrellas. Italy‘s beach clubs generated an overall revenue of 2.1 billion euros ($2.29 billion), according to the latest figures published by consultancy Nomisma in 2023.
The government received an average of 102 million euros per year from operating licenses between 2016 and 2020, under the latest data from Italy‘s Audit Court.
For almost two decades, the European Commission has been locked in a legal battle with Italy over its beach concession practices, accusing the country of lacking transparency and breaching competition rules.
Previous Italian governments, from left to right, have staunchly resisted EU directives requiring competitive tendering, persistently renewing the existing beach concessions without open procedures.
For years, many of these beach spots have been controlled by the same operators, often resulting in a lack of innovation and high prices.
Economists believe that opening the sector could bring in fresh players, potentially improving service quality and reducing costs for beachgoers.
Currently, they can pay from 25 euros to rent two chaise lounges and an umbrella for the day in the most basic establishments, to several hundred euros in fancy resorts such as Capri or Puglia’s Salento.
Italy‘s beach managers on August 9 opened two hours later than normal in parts of the country in protest at the proposals.
They argue that keeping beach concessions in the family keeps costs for beachgoers down and prevents Italy‘s 7,500 km (4,660 miles) of coastline from falling into the hands of big chains that might not respect local traditions.
