Is the water resistant type unlike the standard drywall which isn't. It is normal for it to be used in bathrooms.
You can repair the paper damage by spreading joint compound over the rips. Lightly block sand the compound flush. You may need two coats on badly damaged areas. Prime the repaired areas with a good primer, and then paint, wallpaper, or whatever your heart desires.
Good Luck!
Dodgeman
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