Jack befriends financially troubled reggae musician Ernest Reed and they form Club Paradise, which they market as a Club Med-style resort complete with a brochure that features photographs of Jack in various disguises on every page. This attracts a handful of tourists, including Barry and Barry who are there for the marijuana and the women. Much of the film involves the tourists' comic misadventures adjusting to island life and the low-rent facilities of Club Paradise. Also traveling to the island is The New York Times travel writer Terry Hamlin who ends up spending most of her time in the company of Governor Hayes. Adding to the fun is suburban housewife Linda White, who is vacationing with her husband Randy, who despite the very favorable surroundings and atmosphere, is not very randy.
