Everything in moderation I suppose. Beach businesses = beach attire I say. Covering up should apply to the obvious. Not very many people want to see anyone eating half naked and barefoot. This would apply to churches, Dr. offices, and malls. It wouldn't make sense to see a teeny bikini on someone walking the street a 45 minute drive away from the beach. On the other hand with pools, water parks, rivers, and other local water features, it is tough to set boundaries.
Seeing flesh, however, is the opportunity cost of living within 2 miles of a beach. Conservative types have to know that going in.
My answer... depends on situation.