What economic system is exemplified in Aruba? Aruba is a Caribbean Island off the coast of northwestern Venezuela. Aruba has an area of 75 square miles. Because of the dry and rocky terrain, most food must be imported. The island was "discovered" in the second half of the twentieth century by vacationers. Now tourism dominates the economy. Hotels are privately owned as are the restaurants. The government spends a lot of money trying to attract visitors to the island. The Smith family is going to spend two weeks on vacation in Aruba. They will enjoy the beaches, water sports, the sunny weather, great food, and many other exciting activities.