Personally, I prefer the surround panels. I will tell you that I am in the minority. I prefer the panels, because, there is less chance of leakage, however most people prefer tile.

I would use matching white tile if possible.

Where did you find a blue tub?

:)

Iri, where do you see a blue tub? I don't see any tub in the photo.

No blue tub. Will be white! Just not sure background

Same white tiles- OR IF you can perfectly match the blue tile that is the top trim tile that could be really cool!!! Especially with a white tub but it’ll lock you into the blue!!! Ok now I’m back to white- more long term versatile!!!

If you like the current vintage look and plan to keep it longterm, I would absolutely tile the bathtub area with matching tile. White field tile with blue bullnose around the edges.

You can get tile look tub surrounds if you want to go that route. I like the floors, but not the blue color of the toilet and matching tiles. I would get a white toilet and find some fun wallpaper with blue from the floor. If the blue border tiles don’t match the wallpaper, you can paint them.

Be sure whoever does the work protects the tile you wish to keep. Frankly I would go with a prefab surround. Thats what I'm going with in my new bathroom shower. You do have to be careful cleaning them because they are basically plastic. Buy a high quality one.