Here's my take on how the level should work. if there really is a beach arena:

The good side:
You fight by the beach, and nice sunset setting, with seagulls and the mountains in the distance look beautiful. There is a ship sailing in the distance. All is well.

The bad side:
It's stormy. The sun has disappeared. Waves are high, there's rain and lightning and furious winds. The ship in the distance is on fire! And for the heck of it, something is swimming in the waters closeby. Something big. Any opponent that gets thrown into the water is eaten by the Lung Hai sea beast!