In the early 2000s I watched a random Saturday afternoon movie on Sci-fi (at the time, not Syfy). The movie is in color and English. Production qualityis B level Canadian. Very C almost B overall movie quality. I think this was a feature film not a made for TV movie.

A brother and sister are on a boat and find a city island? I think something happens to their boat so they can’t leave. The locals are weirdos and chase them. They find out the brother is from the city and apart of some prophecy. The towns people are really creatures or they worship some creature. In the end the brother is badly burned and jumps/ falls into the water. He then realizes he can breathe underwater and sheds his burned skin. I’m pretty sure that’s the end. Does anyone know the name of this terrible movie? I have been trying to remember for like 10 years.