The coconut-covered Cayo Espanto is just 3 miles or a seven-minute boat ride from San Pedro, but feels a world away. As the story goes, the island was christened Cayo Espanto or 'Phantom Caye' by local fishermen who claimed it was populated by duendes (mischievous Mayan pranksters). If fish and rum were left unguarded on this island, the mythical creatures apparently snatched them up.
It seems the duendes have since gone into retirement, because most modern visitors who set foot on this tropical paradise never want to leave. It's not uncommon for celebrities to frequent the island, which has hosted the likes of Robert De Niro, Harrison Ford and Tiger Woods. Leonardo DiCaprio loved it so much that he bought neighboring Blackadore Caye to build his own environmentally friendly island resort.