If you consider the best equivalent to 'holidays' in this sentence, assuming you have the choice between the notion of 'staying IN' and the notion of 'travelling TO', then I believe it makes sense to opt for number 1 that is to say 'staying IN' as the preferred choice. In other words your holiday time is the time you'd spend staying IN Barbados, not the time you'd spend travelling TO Barbados... I would think.
New words, one handy idiom, and a 2-minute quiz — delivered to your inbox to keep your streak alive.