that is being heralded as "the new way forward.'' And when renovations are completed, the establishment will reopen under a new name "The Surf Club.'' Nelson Hunt, who owned and ran the Pier Six, said he was happy with the new arrangement, although he declined to give any details.

"As of January 1, I ceased to operate the Pier Six,'' he said yesterday. "We still have the licence but I have turned the management over to the Elbow Beach. Whatever their timetable is, is how things will be.'' Mr. Hunt said that 1997 was a modest year for Pier Six and "things were not what I really expected''.

He added:"I think the partnership that we have forged with the Elbow Beach is going to be successful.

"The simple fact is that tourism is down. We did not need Monitor to tell us that. Businesses have to find creative, less competitive ways to help each other out.

"We are all going after the same product. We have to give visitors and residents a new experience. That is absolute.'' Mr. Hunt said he had no remorse over his decision to form an alliance with the Elbow Beach because it would be a mutually beneficial union.

"They will have (Pier Six), the hotel and the beach. It gives their guests variety.'' Mr. Hunt said the arrangement fitted in with the $18 million the hotel property was already spending on renovations.

The South Shore resort also intends to offer a variety of water sports on a Hamilton Harbour island as part of a multi-million dollar upgrade of its facilities and activities.

The renovations began on November 24 and the Paget property hopes to have the work concluded by May 1 when it celebrates its 90th anniversary.

Plans include massive renovations of the main hotel building which comprise the construction of a brand new restaurant, meeting rooms and a business centre.

They will also offer a variety of water-based activities at Hawkins Island including jet skiing, small-craft sailing, diving, wind sailing, beach volleyball, nature trails and fishing areas.

Mr. Hunt continued: "The Rafael Group have the expertise in management in this field.

"I don't have any remorse about doing this deal. It is not a takeover or a bail-out. This is really two entities working together for the common good.

"When there are conventions at Elbow Beach, the majority of those persons will come into Hamilton where there will be somewhere for them to come.

"That means the stores will do better and the taxis will do better.

Everything will do better. This (business arrangement) will become the norm,'' he predicted.

RESTAURANT EAT