Yeah, it's Solstheim. Vvanderfell has been destroyed by the Red Mountain's eruption.
Related to this, but iiirc, not only did the Red Mountain erupt, but Vivec was the only thing holding the floating ministry up. When he stopped doing so, the meteorite resumed falling at its original speed, which blew up the city of Vivec, kicked off the Red Mountain eruption, and killed everything. Then the Argonians invaded the rest of Morrowind province. Finally, a floating city populated by undead shows up from the Black Marsh and eats everyone. The end. (I'm actually not sure the undead were from the floating city, but if not, a floating city from the Black Marsh shows up. Somewhere in all this, undead overwhelm Vvardenfell).
Oh, and a few survivors went to Solstheim, which the Nords gave to the province of Morrowind.