Is there such a thing as a Homosexual Tropican? According to one newly immigrated hotel maid to my wonderful island of Tropico, the answer is yes! Take a look at the attachment for your proof. ...
The attachment is lost, but apparently the NPC registered the standard thought about visiting a Cabaret. There is a standard thought for each of the five types of entertainment. Each citizen prefers three of the five in a ranked order. The specific code for genders as related to the Cabaret is murky; female NPC customers may not enter the building. For gameplay, one may consider that in the game world, all gays and lesbians are in a Tropican closet. The game really doesn't need to reflect every social conflict in today's world in order to be enjoyable. Some things are better left in the closet.
As to tourist NPCs, there is some speculation that for the female gender, the Souvenir Shop substitutes for the Cabaret.
Gigo's big issue with the term "gay" was\is really out of line. It is in no way equivalent to nig*er; that equvalent is "faggot" - among others. No one was insulting Eddy when they speculated that he might be gay; he threw out plenty of bait to encourage such speculation.