If you can separate the politics from the people, and separate being gay from enjoying a beautiful island, then go. The Cayman Islands are lovely and full of luxury resorts along white sandy beaches; just do not show too much public affection.
Cayman Islands is an overseas territory of the United Kingdom comprising the islands of Grand Cayman, Cayman Brac, and Little Cayman. The territory is a major financial center in the Caribbean. In 2000 Britain unilaterally scrapped anti-gay laws in its five Caribbean territories after years of trying to cajole the territories — Anguilla, the Cayman Islands, the British Virgin islands, Montserrat and the Turks and Caicos — into changing the anti-gay laws themselves. But facing opposition from residents of the islands, the British government decided to go ahead and make the change itself, officials say.
The old laws in question made homosexual intercourse illegal, and the punishments varied from territory to territory. The laws were rarely enforced. Britain’s government said the anti-gay laws violate international human rights agreements it has signed. Islanders, though, saw the matter differently: Many here said homosexuality is immoral and goes against the grain of their culture and religions. Said one blogger, “the Caymanian attitude is that for all of the social and political evolution undergone in Cayman, one idea is strictly taboo – homosexuality. It is not an accepted part of the Caymanian culture.” Nevertheless, the force of modern times overruled old traditions and the new laws were imposed by London decriminalizing homosexuality. It was made legal in England in 1967.