The most common and most likely answer to this crossword clue is the 7 letter word BERMUDA
B
E
R
M
U
D
A
More clues leading to the result BERMUDA
- Bad rum drunk around Eastern islandĀ group
- Live with artist, accepting vilification, in Caribbean location
- Permit one to move after damaging allegations
- Insults thrown after end of four months on a British Overseas Territory
- Dumber pants initially adopted in place of shorts?
- End to four months abuse, a holiday destination
- Tropical island's surprisingly bad rum contains hint of echinacea
- Rum drunk in place to rest on a British island territory
Buddy explains!

The straight part
We know that "holiday destination" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case holiday destination = bermuda.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.