The song was written in Andrew Ridgeley's living room in 1981, even before the band Wham! was officially formed.
It was the second song Wham! composed, right after “Wham Rap! (Enjoy What You Do)”.
The inspiration came from the glamorous and escapist New Romantic club scene in London. Thematically, it expands on the hedonism of summer vacations in the style of Club 18-30, a travel company for 18- to 30-year-olds.
In an era of unemployment, social unrest, and economic hardship, the New Romantics sought refuge in a world of hedonism, glamour, and fantasy. It was a conscious departure from everyday life –parties, fashion, and music as a refuge. Songs like “Club Tropicana” by Wham! reflect exactly that: an idealized, carefree party world where you can escape the gray.