Across the bay of Manzanillo, on the Pacific Coast of Mexico, the resort of Las Hadas, a marvellous mixture of Moorish, Mediterranean and Mexican architecture, rises from the jungle.

When Las Hadas opened in 1974, Esquire magazine immediately placed it amongst the eight most luxurious resorts in the world. The Dallas Times Herald referred to it as "the most opulent resort in the world... not even the Aga Khan's complex in Sardinia, nor Charles Ritz Paris bastion, nor the Hollywood-styled MGM Grand in Las Vegas can approach the Las Hadas expenditure per room", Vogue described it as "a delicious dream, ultimate luxury carved from the jungle, the world's ultimate playland". Apparently not content with such worldly accolades, Playboy called it "A better version of heaven".

Situated on the Pacific coast of Mexico, some 1,000 km north of Acapulco, Las Hadas means 'The Fairies' in Spanish, and a fairyland it is indeed. After arriving at Manzanillo Airport three hours south of Los Angeles, a leisurely twenty minute drive along the coastal road takes you past villages, hotels of varying standards and a modern-looking Club Med complex. The road then veers to the right and there, before you, is a world set apart... no more every-day Mexico than Disney World is every-day America.

Perched on the hillside of a small peninsula jutting into the azure Mexican Pacific is a visual masterpiece of resort architecture. The Moorish-Spanish-Arabian towers and villas dazzle as you first see them in the distance, pure white in the Mexican sunshine, in dramatic contrast to the brilliant red and orange flowers and emerald vegetation.

Just off the main road you enter "Las Hadas Private Club and Hotel" ... that is if you're an expected guest or an owner of the condominiums on the estate - all sightseers are politely turned away by strict security checks and road blocks.

On the way to the entrance tower which dominates the Las Hadas skyline, the road skirts the golf course designed by Roy Dye which was the conversation piece of the world's champion golfers for years after its completion. The eighteenth hole, right on the edge of the ocean, overlooks the resort complex and condominiums fit for (and mostly owned by) princes and millionaires. The Las Hadas grounds are far more extensive than you would expect, for most of the 200 'rooms' are small whitewashed villas, surrounded by lush gardens of palms and tropical plants, and set out as if in an architect's dream of a miniature Mediterranean village.

The resort's lake-size swimming pool surrounds two islands - one of them, a family of Iguanas, the giant lizards of Mexico, sun themselves on the rocks, unperturbed by the splashing swimmers. A four-metre waterfall cascades into one end of the pool and a rope bridge, swaying with every footstep but totally safe, crosses its narrowest neck. The pools, restaurants, Arabian-style tents lining the beach, and the marina, with its own artificial harbour to shelter the ocean-going yachts and cruisers from Mexico, Canada and the United States, complete the impression of ultimate opulence.

Colourfully patterned cobblestone streets, plazas and whimsical stone statues create a unique and insular feeling of exclusivity. This fairytale resort at first appears to have been created by some utopian, guarded population and it takes some time to realise that all staff and amenities have been purposefully planned to pamper a maximum of 400 guests in only 200 rooms. Adjoining the hotel complex are superb condominiums that blend into the estate of multi-million dollar homes and golf-course villas. On the other side of the peninsula, a new hotel is under construction.

'Rooms' are air-conditioned apartments with no expense spared. They feature marble-tiled bathrooms, small bar areas and huge balconies looking out to sea. Over the entrance to each apartment is a hand-carved stone tablet featuring a symbol of a fish or maybe a unicorn, the grey stone contrasting softly with the whiteness of the building.

Silent electric carts are the only traffic traversing the pebbled streets, all leading to the 'Plaza', like a village square, lined on one side with fine boutiques and shops. Here the atmosphere is more akin to Barcelona, Toledo or Costa Smeralda than the New World.

Now expertly managed by Camino Royale and affiliated with Westin Hotels U.S.A., Las Hadas was the creation of one man who built it with flair, imagination, and a bottomless purse.

"Las Hadas was created by a very rich man and his young wife", explained Peter Maxwell, Las Hadas young English Sales Manager. "They took a jungle-covered, rocky promontory and brought it to the reality you see today. He was Antenor Patino, the Bolivian magnate who at that time almost single-handedly controlled the world's supply of tin.

"When Patino and his wife first saw the jungle-covered promontory, they were enchanted. They dreamt that it could become the playground for the world's nobility and for Patino's friends... regardless of cost. One of the world's richest men in his day, Patino was familiar with the Aga Khan's resort in Sardinia and wanted to create something even better. So he hired Mexican architect Jose Luis Ezquerra, and told him to build the finest resort possible. He did!"

To bring his guests to Manzanillo, Patino required an airport capable of receiving large aircraft and so paid the Mexican government to build the new Playa del Oro terminal at Manzanillo. Six years later, in 1974, both Las Hadas and the airport had been completed, and Patino invited 2,000 members of the world's nobility, leaders of international industry and the press to celebrate the opening of the newly completed resort.

Jumbo jets were chartered to bring in wave after wave of guests... the only condition was they all had to come dressed in white. The marina filled with sleek craft from all around the world. Festivities continued night after night and week after week. Everything was perfection. The four restaurants served gourmet meals; the number of staff far outnumbered the guests and their service was superb.

Patino named streets after his wife and children, and commissioned statues of members of his family to be interspersed with those of unicorns, lions and lizards. So expensive and ambitious was the project that even for a billionaire the cost became a drain. Then tin prices crashed and Patino decided to sell the complex to "Alpha Group", a Mexican industrial group from Monterrey.

During the Mexican economic crash, Las Hadas went through a difficult time as "Alpha Group" went into receivership. Hans Rothlisberger, the Swiss-born head of Las Hadas public relations who has been with the resort since it was opened by Patino, recalls this period:

"It was rough. At one stage there were not enough funds to pay the staff regularly. Occupancy fell, and we were in a crisis situation. But then the management changed again when Camino Real took over. They poured millions into this place and brought it back to the highest possible standard".

Today Las Hadas is bigger and better than ever, and again a dream-holiday destination. It is one of the best kept secrets of American jetsetters, because this spectacular resort doesn't need to promote itself to be solidly booked from season to season.

As the sun sets over the Plaza, guitarists serenade guests with soft Spanish and Mexican ballads. White-jacketed waiters serve 'happy hour' drinks, and as the daylight fades, the floodlighting on the columns, towers and arches transform the mood of this remarkable resort.

The hotel arranges weekly activities such as the "Fiesta Mexicana", with folk dancing, music and festivities that have an authentic Mexican flavour. Part of the attraction of the complex is that its style contents those who wish to do nothing but lie on the beach, yet has much to offer those who cannot sit still: watersports, golf, tennis, deep sea fishing, and discos in the evenings and on into the night.

People conjure up different visions of Mexico, but to the select few who have been to Las Hadas, the image of this superb resort colours their memories. To them, Mexico will always equate to magical holidays in the fairytale setting of Las Hadas.

Bookings: Room rates start at around US$120 per night. Details and bookings from Leading Hotels of the World,

Flights: Mexicana Airlines and Aero Mexico run daily flights from Los Angeles and San Francisco.

Best time to go: November to February the climate is similar to summer in Sydney. Between Easter and September the weather is extremely hot.