Swansea Council, which applied for the money, said the new building would improve safety for beach-users.
BBC: Rhossili
Any British beach flying the flag has to pass the most stringent tests on beach management and safety.
BBC: Eight NI beaches win blue flags
Purbeck Council has criticised people for ignoring warning signs on Swanage beach after a walker had to be pulled to safety on Friday.
BBC: Dorset mud warning after four people get stuck
It has argued the sandy beach is part of operational land and closed it in 2008, citing safety concerns.
BBC: Newhaven's West Beach is a village green, says court
It said that establishing a licensed framework for surf tuition on the beach would allow it to set minimum standards for surfers and this will also help promote water safety.
BBC: Polzeath safety fear for rookie surfers
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