I watched this episode the other night.
They're in Australia, on the Gold Coast. So, too dangerous IMO. The parents did actually watch them from their balcony, their argument was that they only let them swim between the flags, where lifeguards are on duty. But as another couple said, if you're up on your balcony and you see them drowning, you're too far away to do anything. And what if the lifeguard doesn't notice?