well
this is THE LIDO, not venice
i guess - and this are just my two cents - he wanted to bring back some glamour to the place (the beach of the excelsior hotel at the lido) where till  the late 60s, all the glamour took place (and not only during the festival time)
i mean if you see footage from the late 30s to the 60s that place was roaming with glamourous people everty image looks like a runway - it's not longer like that (unfortunately) but it used to be. i dont know if it makes sense, but that's the only explaination i can find for it
(cause i mean i know the place very well and it's not that faboulous)
plus it would've been impossibile for them to set an event like that in venice, no matter who you are it's just impossibile to set in a city like that especially during this time of the year when it's crazy overrun by tourists and its even impossibile to walk around