The Reefs owner David Dodwell plans to turn empty eco-resort Daniel's Head into a fun water sports facility aimed at North American and British yuppies.

The tented village in Sandys has been closed since 2002 and is now a site for squatters. The units, some of which have clear floors over the sea, will be jazzed up in bright colours and stuffed with arty objects according to the project document tabled in the House on Friday.

It says: “Our plan is to create a unique Bermuda experience that will not compete with Bermuda hotels but compete with the growing population of casual, active, family-orientated and adventure seeking travellers who do not consider Bermuda as a destination in and off itself.”

Mr. Dodwell, who is also the United Bermuda Party's tourism spokesman, has joined up with overseas firm Urban Associates for the deal which has yet to be completed.

He said he hoped guests would begin using the revamped Daniel's Head by April next year. The existing 120-seat restaurant will be expanded outside and be driven upmarket to tempt local trade while snacks will also be served at a beach-side cabana and from a roving buggy. The poolside will also be brightened up with colourful lanterns and outdoor furniture while a kids' water programme will be set up.

Water sports will be a key draw with kayaks, canoes, row boats and sail boards available alongside snorkelling gear. It will operate from April 1 each year throughout the summer with weekend packages aimed at locals being offered at either end of the season. There will be some borrowing of staff from The Reefs while on-site housing will be provided for up to ten employees. The resort will be marketed alongside Mr. Dodwell's The Reefs, the Colonial Inn in Martha's Vineyard and the Nisbet plantation in Nevis through a New York central sales office.