This British colony, which consists of Grand Cayman, smaller Cayman Brac, and Little Cayman, is one of the Caribbean's most popular destinations. Columbus is said to have sighted the islands in 1503, but he didn't stop off to explore. He did note that the surrounding sea was alive with turtles, so the islands were named Las Tortugas. The name was later changed to Cayman, referring to the caiman crocodiles that once roamed the islands.

The Cayman Islands remained largely uninhabited until the late 1600s, when England took them and Jamaica from Spain under the Treaty of Madrid. Emigrants from England, Holland, Spain, and France then arrived, as did refugees from the Spanish Inquisition and deserters from Oliver Cromwell's army in Jamaica; many brought slaves with them as well. The Caymans' caves and coves were also perfect hideouts for the likes of Blackbeard, Sir Henry Morgan, and other pirates out to plunder Spanish galleons. Many ships fell afoul of the reefs surrounding the islands, often with the help of Caymanians who lured vessels to shore with beacon fires.

Today's Caymans may be seasoned with suburban prosperity, particularly Grand Cayman, and stuffed with crowds (the hotels that line the famed Seven Mile Beach are often full, even in the slow summer season), but the 31,000 Cayman Islanders -- most of whom live on Grand Cayman -- add considerable flavor with their renowned courtesy and civility. The cost of living may be about 20% higher here than in the United States (one U.S. dollar is worth only about 80 Cayman cents), but you won't be hassled by panhandlers or feel afraid to walk around at night (the crime rate is very low). Add political and economic stability to the mix, and you have a fine island recipe indeed.