Italy to Open Beach Management Contracts to Public Tenders by 2027

Italy plans to initiate public tenders for beach management contracts by June 2027, complying with a European Union mandate. Traditionally family-controlled, beach licenses will be open to newcomers. A decree by March 2025 will determine compensation criteria for current operators losing their concessions.

Italy is set to launch public tenders for managing bars and other facilities on its beaches by June 2027, according to a draft bill released on Wednesday. This move addresses the European Union's demand for market liberalization in this sector.

Traditionally, beach licenses for renting sun loungers and umbrellas have been controlled by families and passed down through generations, depriving rival entrepreneurs of business opportunities. Under the new law, existing licenses will remain valid until September 2027, as per the draft seen by Reuters.

A separate decree, expected by March 2025, will outline the compensation criteria for operators losing their concessions. The amount paid by newcomers will be equivalent to the value of investments made and not yet amortized by the end of the concession.

This issue has caused tensions within Italy's ruling coalition, potentially delaying the approval of the measures, according to a political source. Despite a 2006 EU directive for Italy to auction its 28,000 beach licenses, successive governments have postponed compliance, facing pressure from local stakeholders.

On Aug. 9, beach managers protested by opening two hours later than usual, arguing that familial concessions help keep costs down for beachgoers and preserve local traditions. Beach club revenues reached 2.1 billion euros in 2023, with the government earning an average of 102 million euros per year from licenses between 2016 and 2020, data from Italy's Audit Court showed.

(With inputs from agencies.)