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Help: Caribbean Vacation for this budget??

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I've been tasked with pulling together a multi-family anniversary trip that for me is "last minute". We will be traveling in mid-August. For now, there are 11 people:

5 40 somethings
4 kids (7 - 13)
2 active retirees

The "requirements" as I understand them (it's still a moving target) are:
nice beach / blue water
pool
some activity off the beach / resort at night (not "San Juan" level but somewhere to escape the clan, if you know what I mean)
off-shore (i.e. free) snorkeling a plus
5-7 days (hopefully closer to 7)
multiple rooms/accommodations are okay (so is a big house I guess)

The kicker is the $3500 budget for a family of 4 from the DC area. I'll expect to pay a little more from Indy.

We aren't normally AI types, but we may have to for budget reasons. Not sure how that goes with the off-resort activity/nightlife requirement though.

Given the timing, I was drawn to Aruba or Curacao (outside of the hurricane belt), but we don't know if we can swing that. Mexico is usually mentioned for the budget conscious. I guess we'd have to take the hurricane risk/insurance and I'm not sure if off resort requirement (other than Cancun?) could be met.

Help!

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