Italy plans to open up beach concessions from 2024

The licences to rent out sun loungers and beach umbrellas are traditionally family-controlled and passed down from one generation to another in Italy, despite rival entrepreneurs saying they have been shut out unfairly from a major business. Prime Minister Mario Draghi's national unity government ruled tenders will be open as of Jan. 1 2024.

Italy plans to boost competition for contracts to manage bars and other facilities on its beaches from 2024, the government said on Tuesday, after repeated requests from the European Commission for them to be put out to tender. The licences to rent out sun loungers and beach umbrellas are traditionally family-controlled and passed down from one generation to another in Italy, despite rival entrepreneurs saying they have been shut out unfairly from a major business.

Prime Minister Mario Draghi's national unity government ruled tenders will be open as of Jan. 1 2024. A decision had been held up for months by an internal dispute involving centre-right parties, which staunchly defended license-holders anxious to keep a tight grip on amenities ranging from single-shack parasol rentals to up-market bars and restaurants in prime seaside resorts.

They say keeping it in the family maintains low costs for beachgoers and prevents Italy's 7,500 kilometres of coastline from falling into the hands of big chains who might not respect local traditions. The licences are officially state owned but rarely come up for public bidding. In 2019, the government raised just 115 million euros from the sale of beach licences, while the business itself is estimated to be worth some 15 billion euros annually, according to a study by the Nomisma consultancy.

The licence system's reform is part of a bill Italy approved in November to increase competition in product and services markets to spend over 200 billion euros ($227 billion) from a European Union post-COVID recovery fund. ($1 = 0.8805 euros)