The showstopping beach town of Sestri Levante on the Italian Riviera takes the meaning of a fairy-tale setting to a new level—the Mediterranean enclave is believed to be the inspiration behind the story and recently reimagined movie “The Little Mermaid.”

The Danish fairy-tale author Hans Christian Andersen stayed in Sestri Levante in 1833—four years before he published the tale. Legend has it that the promontory the town was built on was formed from forbidden love between a merman, Tigullo, and a mermaid named Segesta—not unlike the forbidden love of Disney Princess Ariel and human Prince Eric.