My general thoughts shall be specific ideas. I am an opposite!
~ A market event every once in a while, where players actually interact with other players/NPCs.
~ Interesting recurring events (such as a bi-monthly (RL time) faire/carneval, other common entertainment)
~ Festivals (for whatever).
~ Hunting & fishing contests.
~ Arena fights (for entertainment, or possibly as part of a criminal's sentence, etc.)
~ Natural disasters (typhoons, hurricanes, massive frikkin' thunderstorms-- we're at sea level! Could cause environmental damage, lead to other events where players rebuild, etc.)
~ Schooling! A recurring event (or maybe even a dedicated area w/ players) where people can undergo education... an official system, if you will.
~ City councils, where people's characters can voice their concerns & issues to the island's leadership and plead for a cause, and so on.
~ Political corruption, intrigues and so on! Wouldn't it be awesome if there were bad guys in the island's leadership subtly manipulating shizz for their own agendas? Clever!