The islands' most popular destinations are New Providence - site of the capital Nassau - nearby Paradise Island , and Grand Bahama and its vacation towns of Freeport and Lucaya . Both New Providence, with its Cable Beach and South Beach resort areas, and Grand Bahama offer glamorous accommodations, enticing nightlife, fine restaurants and shopping and, of course, great beaches. Some travellers, however, may prefer the quiet, remote charms of one of the so-called Out Islands such as Abaco, Andros , the Exumas or Cat Island , where the accommodations are more rustic and the beaches and reefs virtually deserted.