Asian holiday destination invaded by English (7)
I believe the answer is:
bengali
'asian' is the definition.
(native of Bengal)
'holiday destination invaded by english' is the wordplay.
'holiday destination' becomes 'bali' (Indonesian island and popular holiday destination).
'invaded by' indicates putting letters inside.
'english' becomes 'eng' (abbreviation).
'bali' placed around 'eng' is 'BENGALI'.
(Other definitions for bengali that I've seen before include "resident in Calcutta?" , "foreign language" , "Asian character" , "Ethnic group and language of NE Indian subcontinent" , "tongue" .)