Islander a Venetian artist located outside a hotel (8)
I believe the answer is:
tahitian
'islander' is the definition.
(someone from Tahiti)
'a venetian artist located outside a hotel' is the wordplay.
'a venetian artist' becomes 'titian' (painter and member of the Venetian school).
'located outside' means one lot of letters goes inside another.
'hotel' becomes 'h' (phonetic alphabet: alpha, bravo, charlie etc.).
'a'+'h'='ah'
'titian' placed around 'ah' is 'TAHITIAN'.
(Other definitions for tahitian that I've seen before include "South Sea islander" , "It, in a hat (anag)" , "From French Polynesia" , "someone on tropic island" , "Citizen of Papeete, say" .)