According to Moran's Guide to Australian TV Series, Holiday Island was something of an attempt to emulate the appeal of the American television series The Love Boat. Set on a tropical island holiday resort, the concept was, as Moran notes,
a good one with the potential for a continuous series of new characters in the guide of holiday guests, and the possibility of romance and other entanglements between them and the regular characters who worked at the resort. The opportunities for the intervention of nature in the shape of such happenings as cyclones and storms, and the appearance from time to time of more eccentric and enigmantic characters who had come to the island, offered promise.
But the program was broadcast without fanfare in the middle of the ratings season, to replace the poorly rating Bellamy, and only managed moderately good ratings. It was cancelled in 1982.