Explore lovely, compact Puerto Varas on foot, the best way to take in views of Osorno Volcano and the wooden colonial homes built by German immigrants in the early 1900s. Several are designated as national monuments. Located on the shores of Lago Llanquihue, Chile's second-largest lake, the village is the low-key antidote to the Lake District metropolis of Puerto Montt and serves as a jumping off point for fly-fishing, whitewater rafting, horseback riding and sea kayaking excursions.

The Cayman Islands are made up of three islands: Grand Cayman, Cayman Brac and Little Cayman. The largest, Grand Cayman has a cosmopolitan vibe, gourmet restaurants, world-class diving and the famous Seven Mile Beach. Cayman Brac is a nature lover's heaven of stunning diving and breathtaking walks along the rocky bluff. The smallest island, Little Cayman is home to just 150 people. Visitors enjoy the relaxed atmosphere and diving, especially Bloody Bay Wall, considered one of the world's best wall dives.

The farther you go from Grand Cayman's busy docks, the more peace and quiet you'll find. At Stingray City (actually a sandbar), stingrays swim alongside you in the tranquil waters. Closer to town, travellers report finding some of the best massage and spa services anywhere in the Caribbean.

If you’re looking for a budget-friendly island holiday, consider the Bay Islands. Each one appeals to different travellers—Roatan’s the most developed (but still not as built-up as, say, St. Thomas), Guanaia’s rustic and Utila’s in between. All three have great dive spots and beaches.