The Cayman Islands, a small group of islands in the western Caribbean Sea, are full of colour, music, style and laidback Caribbean charm.

The Caymans are a favourite Caribbean destination, with their blue waters, coral reefs and tropical beaches, and tourism is the primary source of income for the territory. Situated between Cuba and Honduras, the total area of the islands is only around 262 sq km, or one-and-a-half times the size of Washington DC.

An overseas territory of the United Kingdom and not subject to direct taxation, the Cayman Islands are a haunt for offshore bankers, financiers and investors, making them glamorous and wealthy, with condos and resorts along the coastline. The territory of the Cayman Islands comprises the islands of Grand Cayman, Cayman Brac, and Little Cayman.

First visited in 1503 by Christopher Columbus, England’s Sir Francis Drake stopped in the islands in 1586 and named them after the crocodiles that once inhabited them. The islands and Jamaica came passed from Spanish to English rule in 1670 under the Treaty of Madrid and were governed as a single colony with Jamaica until 1962.

The islands, located on a major trade route, provided pirates with the perfect hideout to plunder Spanish galleons and other ships in the 18th and 19th centuries, with their numerous hidden coves and secret caves.

The Caymans have a combined population of less than 40,000. Damaged badly by Hurricane Ivan in September 2004, they have rebuilt rapidly and restored most of the buildings affected.

Grand Cayman is the largest and most crowded of the islands, with hotels along its world famous Seven Mile beach, thought to be one of the best in the Caribbean The capital, George Town, situated on the west coast of Grand Cayman island, is busy and built up, with some good shops, lively bars and restaurants and a charming museum.

One of the best scuba diving destinations in the world, with excellent underwater visibility, the Cayman Islands offer some impressive and colourful sights around the coral reefs. Several companies also offer divers the chance to swim with the islands’ inquisitive stingrays.

Other activities available in the Caymans include hiking, golf, fishing bird watching and kayaking. Visitors can also take a trip to Hell (a series of jagged black rock formations in Grand Cayman), the Cayman Turtle Farm, the remains of the 18th century Fort George and Pedro St. James Castle, the botanic gardens and the kitsch Bodden Town Pirates' Caves.

The highest point in the islands, The Bluff on Cayman Brac, provides stunning views from its 140ft peak, while the 160km of coastline offer a wealth of beaches, from lively, bar-lined sands, to secluded paradise. Cayman Brac itself is a charming wilderness, with some delightful beaches and interesting pirate caves.

Accommodation in the Caymans tends to be modern and luxurious, with air conditioning and cable television. The islands can be expensive to visit, but are very safe, affluent and pleasant, with a high standard of living and a very low crime rate.

The tropical climate means that the islands are warm all year round, with a rainy season from May to October and cooler, drier winters. The hurricane season runs from July to November.