If I can remember some pics, I'd say either Salerno or Naples. Unless an Italian here would say otherwise.
I thought so too... but I don't remember any place like that in Naples (that's the city where I live). That balustrade, though, that's definitely generic Italian architecture... On top of that, Naples and Salerno don't have that type of artificial cliff (the one back the boats). Looking at what Littorio is eating (That's definitely pasta with Genoese pesto sauce [sorry I don't know how it's called in English, it's a sauce made from basil and pine nut]) maybe that's Genova? But, hey, I may be wrong.
If I can remember some pics, I'd say either Salerno or Naples. Unless an Italian here would say otherwise.
It could be anywhere in Italy that has a port, really.
Hell, it could be anywhere in the world: the balustrade might as well just be fancy architecture for a seaside italian restaurant, this scene might even be happening in Japan for all we know, the background is too generic to be pinpointed to a specific location.