Strange tale about island holiday destination (5)
I believe the answer is:
eilat
'holiday destination' is the definition.
The definition suggests a singular noun which matches the answer.
'strange tale about island' is the wordplay.
'strange' is an anagram indicator.
'about' means one lot of letters goes inside another.
'island' becomes 'i'.
'tale' anagrammed gives 'elat'.
'elat' enclosing 'i' is 'EILAT'.
Can you help me to learn more?
(Other definitions for eilat that I've seen before include "Middle Eastern port" , "Red Sea resort" , "city" , "Gulf of Aqaba port" , "Israel's Red Sea port" .)