The issue of lying was covered on an earlier thread. Someone who had visited the Caymans (I believe) said that it's typical islander stick-together stuff.
That's just a stupid provincial attitude on their part. It is going to hurt them and all the islands I think. Better they should adopt an attitude of the tourist is always right. But I suppose that is the attitude toward tourists everywhere, US included. Take their money yet hold them in the deepest contempt.