I decided to do a version of the Duneser towel for my aunt and uncle, who hosted my mom and sisters in the Bahamas. It was an easy project, though it took a good amount of time and attention. I purchased beach towels, permanent fabric paint, stencils and brushes (found at Jo-Ann or Michael's) and taped out the design ('MOW' for Man-o-War, Bahamas).
Because of the thickness of the towel threads, you spend most of your time thickly dabbing the paint on. Brush strokes are not your friend.
After the paint has dried (I gave each towel 24 hours), you'll want to to clean up any wayward threads. I used my sharpest sewing scissors.
Ta da! The finished product.
And here, on my excellent uncle Jack.