Isla Margarita sex guide advises where to find prostitution , hookers , brothels , erotic massage parlors and escorts in Margarita Island , Venezuela. Margarita Island Isla Margarita is in the Venezuelan state of Nueva Esparta, off the northeastern coast of the mainland and to the northeast of the country's capital Caracas. Prostitution in Venezuela is legal and regulated. Margarita Islands does not have a red-light district because the whore houses are spread all over across the island. How ever due to the economic crisis, many of the sex clubs are closed down or changed the owner or names. And no matter what President Hugo Chavez says about the President of the United States, the people on Margarita welcome you with smiles and they seem to welcome anyone dressed better than them with smiles.