Many divers told me the dives off Little Cayman on Bloody Bay Wall are the best. Stingray City is not to be missed, even if you're just snorkeling. Erma Eldemire's Guest House in the residential part of George Town. It's a small motel run out of a family home. She also rents an apartment.
Families are welcome.
The rooms were clean, and having a community kitchen to cook in saved a lot of money on food. My favorite spot by far was Sam McCoy's Diving and Fishing Lodge on Little Cayman. For now, the island is refreshingly undeveloped. The airport consists of a dirt strip and a one-room shack. The rest of it is sand, coral and swamp.