Fish People on Island Wear Human Masks in 80's Film

by Adam
(Illinois, USA)

I'm looking for the title of an 80's horror film where a guy with dark hair and I think glasses, we’ll call 'Younger' somehow ends up on an island where the inhabitants worship some kind of sea god and turn into fish people wearing human skin to cover their mutations.

Toward the end, Younger and this rough-looking older guy are captured and someone comes in, cuts the older man from ear to ear and peels his face off to wear as a mask. He then starts to cut Younger when a queen-type woman takes Younger back to her room and tries to have sex with him, telling him he was meant to be one of them and that he should convert.

Younger sees that the lower half of Queen's body is like a squid so he refuses and says a Christian's prayer, proceeding to poor gasoline all over himself and setting himself on fire. Queen then tackles him into this hole in the floor that leads to the ocean and as they sink, Younger develops gills on his ribs and they swim off into the darkness.

If anyone can help me find the name of this movie, I would be forever grateful.