Go to the site called www.fogu.com/hm/ and click on Harvest Moon Island of Happiness. Then go to Villagers and look for which one you want to unlock, and it will tell you how to.
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There is no Mystic Island in the game Island of Happiness. Mystic Island only exists in Sunshine Island.
You must ship 100 Soybeans to unlock Pineapple Seeds.
To remodel the hotel, you need more people to come to the island. To get more people, you need to unlock a couple of things. Hope i helped!
Give the cafe owner milk and she'll give you the recipe.
First, you must finish building all the bridges. Then, you will need to have all the main villagers and at least 30 sub villagers to move to the island.