Strange tale about one resort (5)
I believe the answer is:
eilat
'resort' is the definition.
(Israeli resort)
'strange tale about one' is the wordplay.
'strange' indicates anagramming the letters.
'about' is an insertion indicator.
'one' becomes 'i' (Roman numeral).
'tale' anagrammed gives 'elat'.
'elat' placed around 'i' is 'EILAT'.
(Other definitions for eilat that I've seen before include "Israeli Red Sea port" , "Israel's Red Sea port" , "Gulf of Aqaba port" , "Middle Eastern port" , "city" .)