Spain’s Tourism Boom Reaches New Heights Amid Global Uncertainty
From the rooftop terrace of a hotel overlooking Benidorm’s skyline, the signs of Spain’s tourism success are impossible to miss. Towering hotels, crowded beaches, and bustling streets tell the story of a country whose tourism industry has not only recovered from the pandemic but is thriving like never before.
For Fede Fuster, president of Benidorm’s tourism association, the transformation is a source of pride.
“With all its virtues and its defects this is a place we feel proud of,” he says. “It’s a place of opportunities.”
His family’s connection to Benidorm stretches back generations. They were among the first hoteliers to invest in the city during the 1950s, helping to shape what would become one of Europe’s most recognisable holiday destinations.
Today, although Benidorm’s permanent population remains around 77,000, that number can swell to nearly five times its size during the peak summer season as tourists flock to its Mediterranean shores.
The Unexpected Boost From Global Conflict
Spain’s tourism industry has been setting records year after year since the end of the Covid-19 pandemic. In 2025, international arrivals reached an unprecedented 97 million visitors, reinforcing the country’s position as the world’s second-most visited destination after France.
Now, industry leaders believe 2026 could be even bigger.
“I think this is going to be a great year,” says Fuster. “I’m optimistic, we’re talking about reaching 100 million tourists in Spain. If we keep growing like this we’re going to be number one [in the world] very soon.”
While analysts had initially predicted more moderate growth this year, geopolitical developments have altered travel patterns. The ongoing US-Israel-Iran conflict has prompted many travellers to reconsider holiday plans in parts of the Middle East and eastern Mediterranean.
Destinations such as Dubai, Turkey, Egypt and Cyprus have seen some visitors redirect their travel budgets towards Spain, which is widely viewed as a safer alternative.
“In these moments of crisis, of [military] strikes or wars, the bookings always increase,” says Fuster, recalling similar trends during the Arab Spring more than a decade ago. However, he notes that Spain would rather compete on its own strengths than benefit from instability elsewhere.
Why Spain Is Benefiting
According to tourism experts, Spain’s reputation for safety has become a significant competitive advantage.
“Any time that you have a crisis in the [eastern] Mediterranean or the Middle East, Spain is seen as a secure place to go,” explains Francisco Femenia-Serra, a geography lecturer at Madrid’s Complutense University.
He notes that many travellers who might normally choose lower-cost destinations such as Turkey or Egypt are increasingly turning to Spain.
“Part of the tourists that would normally go to Turkey or Egypt because of the [low] prices, for instance, might end up in Spain.”
The figures support this view. Spain welcomed 9.1 million international visitors in April alone, representing a 5.2% increase compared to the same month a year earlier.
Meanwhile, Dubai International Airport experienced a dramatic decline in passenger traffic during March as regional tensions disrupted travel demand.
Tourism’s Role in Spain’s Economic Success
The tourism sector remains one of the pillars of Spain’s economy, directly contributing around 13% of the nation’s Gross Domestic Product.
In recent years, Spain’s economic growth has outperformed several major European economies, including those of France, Germany, Italy and the United Kingdom.
Yet the industry is not without concerns.
One challenge is the possibility of rising fuel prices, which could make international travel more expensive and reduce demand.
A larger challenge, however, comes from within Spain itself.
Growing Frustration Among Residents
As visitor numbers climb, so too does local frustration.
“Tourism was always accepted as a positive economic sector for Spain,” says Femenia-Serra. “That changed from 2016, 2017, with the label of over-tourism being put on some cities, like Barcelona.”
He believes attitudes have shifted significantly, particularly among younger Spaniards.
“And now, most young Spaniards under 45 have a different image of tourism. They see it as a sector that obviously has a positive impact but also some negative outcomes in their lives.”
Since 2024, anti-tourism demonstrations have become a recurring feature in several popular destinations, including Barcelona, the Balearic Islands, the Canary Islands and numerous towns along Spain’s Mediterranean coastline.
Public sentiment reflects this growing unease. A Europe-wide survey conducted by YouGov found that 28% of Spaniards held a negative view of foreign tourism – far higher than in any other surveyed country.
The Housing Crisis Connection
At the centre of much of the public anger is housing.
Many residents believe the rapid expansion of short-term holiday rentals is making it increasingly difficult for locals to find affordable homes.
In Valencia, tenant advocacy groups regularly gather to discuss rising rents and housing insecurity.
“We have on the one hand the tourist accommodation market and on the other the residential market,” says Jordi Vila of the Sindicat de Llogateres (Tenants’ Union).
According to Vila, landlords increasingly set rents based on what foreign visitors can afford rather than local salaries.
“When it comes to renewing rental contracts, the owners of properties no longer think about setting rents according to local salaries, but rather the salaries of people visiting from abroad, which might be three or four times higher. So local people end up getting pushed out of their homes.”
He points to Barcelona as a prime example of the problem.
“A kind of theme park,” he says, describing how tourism has transformed parts of the city centre.
The frustration is visible elsewhere too. In Asturias, graffiti has appeared on holiday rentals bearing the message: “Your business, our ruin.”
Government Steps In
Spain’s government has increasingly acknowledged the concerns surrounding housing and tourism.
In 2025, Prime Minister Pedro Sánchez publicly warned that there were “too many Airbnbs and not enough homes.”
Later that year, authorities fined Airbnb €65 million for advertising unlicensed properties.
Local governments have also introduced measures aimed at limiting the growth of short-term rentals. Barcelona has announced plans to revoke licences for all 10,000 of its tourist apartments by 2028, while also doubling tourist taxes for certain cruise passengers.
Housing campaigners welcome such interventions but argue that much stronger action is still needed.
Searching For Balance
The tourism industry, meanwhile, worries about the growing divide between residents and visitors.
Industry association Exceltur has called for efforts to repair relations between local communities and the tourism sector.
Yet experts acknowledge that finding a workable balance remains difficult.
“We have measures that try to alleviate the impact that tourism has and that try to distribute tourists in cities in a different way,” says Femenia-Serra.
“But we still haven’t seen a single measure that is effective in reducing the number of tourists.”
A Delicate Future
Back in Benidorm, as another potentially record-breaking summer approaches, Fede Fuster recognises both the opportunities and the responsibilities that come with Spain’s tourism success.
“We say we are the industry of happiness,” he says. “But we also have to realise that we impact the normal life of citizens.”
For him, maintaining the welcoming spirit that has made Spain such a popular destination remains crucial.
“The way we welcome people and we care about them and our happiness, the way we live, I think that’s something the tourist really appreciates – that’s the key,” he explains.
But he also offers a warning.
“That’s why we have to work a lot in these places, mostly in cities, where there is a feeling of not welcoming tourists. It’s very important for us because if we lose that, we’re dead.”
As Spain edges closer to the symbolic milestone of 100 million annual visitors, the challenge is no longer simply attracting tourists. It is ensuring that the country’s tourism success remains sustainable for both visitors and the communities that call these destinations home.
