Tourism accommodations taking shape on the South Shore are showing faith in Bermuda tourism.

A $10 million-plus combined residential and hotel room development is already attracting interest from buyers -- displaying a possible recipe for success for the hospitality industry.

Pink Beach Club and Cottage Colony is following the course of other Island accommodations, investing in its tourist rooms whilst bringing in funds by building real estate units.

And many of the condominiums sold could be leased back to the resort -- providing an extra, upmarket selection of tourist units to upscale visitors.

The Pink Beach scheme is scheduled for completion by September next year, and will precede other hotel/condo plans around the Island.

Palmetto Gardens in Flatts is to close at the end of the current season and will re-open in 2001 as a combined hotel and condo site -- with the possibility of some of the homes being available to guests.

And the plans for the now-closed Belmont Hotel include leasing back a number of weeks in the residences for holiday accommodation.

Pink Beach managing director Michael Williams said he had been surprised at the interest already expressed in the 19 condos, priced between $1.8 million and $2 million.

"We have already got five deposits and there will be a lease back option,'' he said. "Two have expressed an interest in that.

"It is attractive, it satisfies everybody -- the owner, tourism industry and the guests, because they have luxurious rooms. These condos will be second to none.

"We feel confident in the industry. The interest that has been shown so far indicates it will be successful.'' Around 3,000 square feet in size, the units will feature three to four bedrooms, which Mr. Williams said he believes will prove tempting to family groups wishing to stay together.

The project, which is being completed in phases, will see a total of 88 tourist units established at the South Road, Smith's Parish site.

Much of the work has already been done, with minimum of disruption to the functioning colony.

"We have families that come back year after year, sometimes three generations, and they have expressed an interest in the condos,'' he said.

And as work progresses, Government is busy revamping existing legislation to account for the new trends in accommodations.

Attorney General staff are reviewing the Timeshare Act, which eventually will enable all the new developments to be encompassed.

Big plans: Managing director of the Pink Beach Club, Michael Williams, goes over plans with architects and builders. From left are manager of Decosta Construction, Peter Araujo; representative of the hotel's owners, Don Jollife, and The Studio architect, Christopher Tombs.