Strange tale about island holiday spot (5)
I believe the answer is:
eilat
'holiday spot' 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' with letters rearranged gives 'elat'.
'elat' placed around 'i' is 'EILAT'.
Can you help me to learn more?
(Other definitions for eilat that I've seen before include "city" , "Israel's Red Sea port" , "Gulf of Aqaba port" , "Israeli Red Sea port" , "Red Sea resort" .)