The answer is even more interesting than I had anticipated. It turns out to be on the Adriatic Riviera, not the Mediterranean, and rather than being a quaint and rustic island, it is ultra-posh, as per the Wiki description:
Sveti Stefan… is a seaside resort located 5 km southeast of Budva, on the Budva Riviera... It used to be an tidal island, but is now permanently connected to the mainland by a narrow isthmus.Google image search provides a plethora of additional photos. Thanks to Anonymous for the identification. The image above is of the nearby, and equally intriguing Sveti Nikola island; I would love to day-hike up that incline and picnic at the top...
Sveti Stefan was inhabited in 15th century as a fisherman's village. In 1950s last residents of the village were evicted, and Sveti Stefan was transformed into a luxury town-hotel. It is the most exclusive resort on Montenegro's coast.
Sveti Stefan was popular among celebrities, so some of its guests were Marilyn Monroe, Willy Brandt, Bobby Fischer, Boris Spassky, Sophia Loren and Carlo Ponti, Monica Vitti, Ingemar Stenmark, Kirk Douglas, Jonathan Miller and Claudia Schiffer.
The streets, walls, roofs and façades of the buildings have retained their original shapes, while the interior of the houses has been transformed to offer the most modern luxury hotel comfort.
In 2006, Villa Montenegro, one of the villas situated by the very bank of the isthmus connecting the island with the mainland, won the prestigious Five Star Diamond Award, which is handed out by the American Academy of Hospitality Sciences for superior quality of service…
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