It's pretty clear that God made the place just for Touya's happiness after death. We call that Heaven.
WMG / In Another World with My Smartphone
The new world is HeavenHe's dead and gone to a new world. A new world which seems (judging by the islands) to have been explicitly made for him in a lot of ways, where he's given divine powers (access to all magic, along with enhanced physical capabilities), and his smartphone. The world allows polygyny, and a massive number of women just happen to be passionately attracted to the Covert Pervert Nice Guy.
Touya is Regina Babylon's ReincarnationThe reason being they both wear white coats and both are all attribute users.