Sonesta Beach Hotel, Fantasea's part-owner Michael Heslop confirmed yesterday.

South Side Scuba is owned by Robert Limes who continues to operate the scuba diving concession at Marriott's Castle Resort.

Fantasea Diving, located on Harbour Road, is owned by Michael Peers, Luciano Aicardo, and Mr. Heslop. As well as the scuba diving business, they operate Fantasea Cruises aboard 55-foot catamaran Aristocat .

"We've been growing at our present location and Mr. Limes approached us about the Sonesta concession,'' Mr. Heslop said.

"This seemed a perfect addition to our existing business.'' Price was undisclosed.

Fantasea Diving principals and Mr. Limes agreed to the deal about two weeks ago while Fantasea Diving and Sonesta are currently concluding terms, Mr.

Heslop said.

Four of South Side Scuba's staff at the Sonesta hotel will remain while three non-Bermudians will move on to Caribbean dive businesses, he said.

Mr. Heslop was very optimistic about the Island's scuba diving business.

Bermuda waters represented a largely untapped tourism resource, he said.

Hotels are starting to see the potential and are phoning dive companies about scuba vacations for visitors, he said.

With dozens of shipwrecks in Bermuda waters, the product is there, Mr. Heslop said.

And the Island's wrecks have received accolades on more than one occasion.

Most recently, Bermuda was voted number one in wreck diving in the Caribbean/Atlantic region by Scuba Diving Magazine in a survey of 4,000 divers. The Island finished ahead of Aruba and British Virgin Islands. Scuba Diving Magazine boasts a readership of 185,000 people.

"From the Sonesta location, we'll be concentrating on the south shore, because the reef is close we can make five trips out a day. And with two locations we can move customers from one location to the other if needed,'' Mr. Heslop said.

"We've been working with the Department of Tourism, attending trade shows and advertising in magazines'' to promote diving in Bermuda, he said.

Mr. Heslop said Sonesta executives Dennis Tucker and new boss Joseph Violi are keen to capitalise on dive tours. In August, Mr. Violi, former Trump International Hotel and Tower general manager, was selected to run the Sonesta. Hotel owners cited Mr. Violi's marketing strength as a major reason for the choice.

"The potential at Sonesta is endless and with the backing of the new general manager, we're looking to double our business,'' Mr. Heslop said.

DIVING SEA