Walcott will line up for England against Brazil tomorrow night.
He admitted: "We had a stroll on the beach on Thursday and saw some of the kids who were six or seven using their shoulders and everything to play beach volley.
"I can't even do that. It shows technically they have got it out here."
In a week when there has been so much talk about England going back to the dark ages, it was a rather stark admission.
Tottenham striker Jermain Defoe was equally in awe.
He added: "I saw girls doing it, too. It was unbelievable. But when you come to Brazil you expect talent like that."