A comparative perspective of the tourism industry in the islands of Colón, Panama and Carriacou, Grenada is presented in this article. The islands have long histories of association with colonial powers, coupled with more recent histories of ‘discovery’ as tourist destinations. The historical constructions of ‘paradise islands' and the appropriation of tourism for nation‐building purposes in these territories are analysed. The discussion assesses the underlying reasons for the differing responses by African Caribbean populations toward tourism development, in spite of similar colonial and postcolonial histories.