THE EXPLANATION of the reasons why construction of a separate West Sands resort-hotel was put on hold will be studied keenly by many in the tourism and property industries across Phuket this week.

Phuketwan was first to reveal last week the decision not to go ahead with the purpose-built resort at the West Sands development on the beachfront at Mai Khao, which was to be managed by Outrigger.

Now under its own management, a West Sands Resort is to open on December 20, initially with 110 villas and condos available, together with a 500 million baht themed waterpark.

The marketing emphasis at West Sands is now going on the 14-rai water park, which will be open to the public. Developers predict it will attract at least 1000 visitors a day '' . . . and a number of these will become buyers of property and renters of our inventory, thereby driving up occupancy and room rates.''

The point is made in a letter to West Sands property purchasers from Paul Mercer, who co-owns West Sands with Sir Terry Leahy, CEO of Tesco.

Text of the letter now appears on the website, pr-inside.com.

One of several key paragraphs reads: '' . . . as I am sure you are all aware, since the financial crisis last year the hotel industry has been hit badly with falling occupancy rates, and it is currently difficult to see how any new hotel can make an acceptable financial return or indeed be financed.''

Eyebrows will be raised at that sentiment, especially by managers at conventional resorts that have opened for the 2009-2010 high season, or are about to open.

''On December 20th we will open the water park,'' the letter says. ''This is Thailand's first major themed water attraction and undoubtedly will become one of the top tourist attractions in Thailand.''

The letter continues: ''This will have a positive effect on the rental returns and also the capital value of your and our investment. In addition to the rides and attractions, the water park has good food and beverage provision, with a food court, bars and an international deli which will also be available to West Sands residents.

"I know it has been a bit of a long road for you all, particularly for our early investors, but I think we can all look forward with confidence that West Sands will be tremendously successful, and we should see the fruits of our investments very rapidly."

Outrigger is now branding the Outrigger Laguna Phuket Resort and Villas at Laguna Phuket, which is to open on December 1, the same date as the Andara Resort, on the coast road in Kamala.

West Sands, Andara and the Outrigger Laguna Phuket Resort all represent the new high-end mix of property sales and resorts. A marketing battle is about to begin, with the benchmark set by West Sand's Splash Jungle theme park.

At one stage, Laguna Phuket contemplated installation of a tethered balloon, which would have ascended to provide tourists and diners with a unique view of Phuket's north. An annual marathon and a triathlon also act as attractors to the Laguna brand.

Phuket developer Allan Zeman, credited with creating Hong Kong's Lan Kwai Fong entertainment district, is no slouch either when it comes to new ideas.

He probably has some for marketing the Andara Resort, although it's smaller and more select and perhaps short on space for a Disneyland or a moon rocket.