Turks and Caicos sounds like it has your requirements.

New years eve is amazing there, beach BBQs and bonfires, and the best part, 12 mile beach with 6-8 different fireworks at the same time over the water in both directions, it's magical!

Thanks, blamona!
My initial thoughts are:
- Saint Martin
- St Johns
- Turks and Caicos
- Curacao
- Grenade
- Anguilla

Any other inputs, please?

Sorry, forgot to mention one: Barbados.

Personally, I really don't think New Years Eve is going to be appreciably different on any island. You'll find all kinds of celebrations no matter where you go.

Now, if you don't like traffic cross St. Martin off your list. Traffic on that island can be challenging any time of the year.

All of the other islands on your list will have what you are seeking. Since each of those islands have a different vibe and one is not necessarilly better than the other (they are just different) you should use the "Destinations" link at the top of this page, click through to the "Caribbean" and read the summaries of each island. Choose the one or two that most appeal to your senses. You can then investigate those in more detail to further narrow your choice - save the others for future trips. Remember there is no right or wrong island, just different islands.

A couple of other points, Christmas/New Years is peak time in the Caribbean so you are going to find the highest room rats of the year. Also, many resorts have minimum stay requirements so you may have to stay longer than a "week".

Thank you, RoamsAround. I am aware of the high rates.
I was initially thinking in Saint Martin; however, I read a couple of comments on the challenging traffic. Could I stay in just one beach (eg, Orient Beach) and not having to rely on cars? Or this would not be a good option?

There is nothing to prevent you from staying on one beach (on any island) but the ramifications are obvious - you will limit yourself to only those places that are within a reasonable walking distance. There are so many interesting places around St. Martin that staying in one area would be doing yourself a disservice. Of course, only you can decide what is right for you.

St. Martin is a place to be explored.....Orient Beach is great...but you'll want to ride around...and it's so easy to do!

I was going to suggest Barbados. It's a great island for a first time visit to the Caribbean.
We were in Guadeloupe for New Year few years back, it was very quiet where we were (Deshaies) but even this fishing village had fireworks. The livelier resorts on Grande-Terre would have had more going on.
You might also enjoy Negril, Jamaica but it's rather far north so the weather might not be warm enough, we were there in March last year and it was barely 25C however in Guadeloupe it was very hot during January.

According to me Saint Lucia is the best Caribbean island for the new year eve.Last year i was there and there were festivals everywhere people were on roads .Everything was exciting there .
You can get more information through "http://www.stlucia.cc"