Ferry prices surged 13.1 percent between May and June, while the cost of a package holiday rose 12.8 percent, an increase of four percent since 2012, the association noted.
Thirty-three million people will skip holidays as they grapple with the price hikes alongside the country's longest recession in more than 20 years, the report said.
However, not all Italians are cutting back on their time at the beach. Andrea Affinito told The Local that he plans to spend a few weeks in Salento, in southern Italy.
"Maybe people aren't going abroad, but they will still take a holiday in Italy."
Giovanni Casillo said he had noted the rising cost of a ferry ticket, meaning fewer Italians were likely to visit the islands. But he is planning a week at the beach in Italy as well as a short trip abroad this summer.
"There doesn't seem to be much difference in airline tickets; people will still go on holiday, but maybe they'll go for half the amount of time they used to, as they don't have as much money in their wallets."