There is no difference in water proofing abilities unless obviously your grout has failed lol. It depends what effect you like i prefer tiles but they are abit more work to upkeep. The wet wall is going to protrude from the original wall I have seen people not being able to use their taps because of badly fitted wet wall. You can get a proffesional finish using both as long as you've done abit of joinery or tiling before hand.
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