- Italy's beach-side operators threaten to strike
Umbrellas folding, towels rolling, loungers clearing. That could soon be the fate of tourists along the Italian coast. For the operators of popular beach resorts are threatening to strike - right in the middle of the high season, at the height of summer.
This is not about more money or better working hours, but about keeping their licenses for operating the beach resorts and thus their livelihood. Some operators speak of 300,000 jobs at risk. The Italian government should have implemented an EU directive for new tender procedures long ago, but has refused to do so for years. Now, it could get serious.
Beach Day or Strike Day?
The beaches in Italy belong to the state and are usually managed by the municipalities or regions. Accordingly, the municipalities also award the so-called concessions, the administrative permits for the commercial use of the beaches, for example with restaurants or beach resorts with huts or loungers. Typically, this happens in Italy only once, as the licenses often remain in family ownership and are passed down through generations. Italian Prime Minister Giorgia Meloni has already defended the paid beach resorts as a historical and cultural heritage of the country.
But beach resorts in Italy have not only a long tradition, the rental of colorful umbrellas and loungers is also a lucrative business: A umbrella with lounger and sunbed costs between 20 and 30 euros per day. The think tank "Centres for European Policy Network" (Cep) calculated that the companies pay an average of only around 7,600 euros per year for their concession, but make 260,000 euros in turnover.
No wonder the operators don't want any competition - but there will certainly be some if new tenders are held according to EU rules. Italian beach concessions should actually have been tendered Europe-wide according to verifiable criteria since 2006 and may no longer be simply extended automatically. Europe-wide also means that foreign investors could submit better offers than locals.
Italy has been resisting this for years. There have been several proceedings for breach of contract against the country, and last year there was also the ruling of the European Court of Justice, EuGH. Initially, a law was passed to extend the concessions until 2023. But to settle the dispute, the subsequent government under Mario Draghi then agreed to hold new auctions for the award of concessions by the end of 2023. Before this could happen, the right-wing populist government of Giorgia Meloni took over - and extended the validity of the concessions again until the end of 2024.
Meloni lets coasts remeasured
The beach resort operators are part of Meloni's electorate. Therefore, she probably tried to circumvent the EU directive by showing that Italy still has enough free beaches and had the Italian coast remeasured. Suddenly, the country had 3,000 kilometers more beach, but Brussels does not find this particularly credible. This attempt to trick was also not well received in Italy itself.
The State Council of Italy called in the spring for the immediate initiation of a tender procedure for the award of beach concessions under real competitive conditions. Beach is "scarce" in Italy, according to the ruling. The decision of the Meloni government could thus be invalid, the State Council is the highest instance for administrative matters in Italy.
According to the "Financial Times", some Italian municipalities are now preparing their own tenders and even drafting compensation guidelines for operators who lose their long-standing concessions. However, beach operators are demanding more: they want the government to guarantee them at least two years' worth of their turnover as compensation for lost businesses. "That's the absolute minimum," said Antonio Capacchione, president of the Italian association of beach operators, to the "Financial Times". "We're demanding fairness. Is it morally justifiable for someone to simply take over a business that was built with the sacrifices of another entrepreneur who couldn't sleep at night?"
"Cries of Pain from Italian Beaches"
Two industry associations have announced that they will close their premises and rented umbrellas for two to four hours on several days in August. "We want the cries of pain from the Italian beaches to be heard," said Capacchione. "People have trusted the state's laws that said, 'invest as much as you want'. Now they're facing a government that promised everything and is doing nothing."
Italian business associations propose a restructuring law that takes into account the EU directive but protects Italian operators. However, a more competitive procedure might not be bad for local beachgoers and tourists. In recent weeks, there have been repeated protests from citizens demanding free access to the sea.
The Operators are planning to close their beach resorts temporarily, causing disruptions during the peak summer season. This action is in response to the Italian government delaying the implementation of EU directives for new tender procedures, putting at risk the licenses and livelihoods of thousands of beach workers.
Many Italian municipalities are considering independent tenders for beach concessions, following the calls from the State Council for fair and competitive conditions. Antonio Capacchione, president of the Italian association of beach operators, has demanded at least two years' worth of turnover as compensation for those who could potentially lose their businesses due to the new tendering process.
