“In the way of” is a phrase. If there is little/not much in the way of something, there is little/not much of that particular thing. So “there is little in the way of entertainment” means “there is little entertainment” source: http://www.macmillandictionary.com/dictionary/british/in-the-way-of

Unspoilt, (unspoiled) means that the island isn't developed, not ruined, it is still in its' natural form. No development, therefore, no entertainment. Hope this helps:-)