It looks like a blending of layers.


From what I can see, there appears to be two layers. The layer (background layer) is the picture of the beach scene. The other layer is on top of the background layer, and with a very small opacity setting for the top layer. It also could have had its color removed. It all depends on the image used.


Then, to finalize the image, the portion of the top layer is erased from key portions of the image, namely the child's face and parts of her hand, etc.


Lastly, some changes in the entire image are probably done with an adjustment layer (hue/saturation), with the judicious use of one of the filters in the filter palette.