The arrested were identified as Rameez Khan and Azaruddin, both hailing from this coastal town, they said.
According to police, the incident happened on Saturday when the foreign nationals, Jasper Canon and William Meister, were sitting at a restaurant near the beach here.
The youths were arrested based on a complaint lodged by the victims, who arrived in the state recently for a holiday.
The accused tried to misbehave with some of the women members belonging to an another group of foreigners from Spain and Canon and William tried to intervene resulting in a minor scuffle, they said.
The accused, arrested on Sunday, were remanded to judicial custody, police said.