Four people were still missing after Saturday's disaster in the port of Casamicciola Terme, with houses brought down and mud submerging the streets.
Ischia, whose thermal baths and picturesque hilly coastline draw visitors from across the world, is also known for its rampant unauthorised construction - along with many other parts of the country.
It said 600 unauthorised houses had been given a final order of demolition.
Rescuers look for missing people, following a landslide on the Italian island of Ischia, Italy November 28, 2022.
Granting amnesties for illegal construction put people at risk, he added.