The most common and most likely answer to this crossword clue is the 8 letter word BARBADOS
I've seen this crossword clue in Financial Times
B
A
R
B
A
D
O
S
More clues leading to the result BARBADOS
- Pointed remarks, holding a party in holiday island
- Country pub associated with poor sailor
- Boozer, British, with soft drink turning up somewhere in Caribbean
- Drinking haunt attended by awful sailor in holiday destination
- Something sharp, with soda, knocked back somewhere in W Indies
- Wounding comment on notice over small island
- Pub baron troubles island
- Island place to drink drop of bourbon and mixer looking west
- Dig first and then pop back to the country
- Bishop has drink with supporter back in the Caribbean
Buddy explains!

The straight part
We know that "island" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case island = barbados.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.