From a rooftop terrace in Benidorm, Fede Fuster surveys the sea of high-rise hotels and the long, sweeping beach that defines this Mediterranean resort. “With all its virtues and its defects this is a place we feel proud of,” he says. Fuster, who leads the local tourism association, has family roots in the hotel business dating back to the 1950s. Benidorm, with a resident population of 77,000, swells to about five times that figure in peak summer months as visitors flock to one of Spain’s premier holiday destinations.
Since the Covid-19 plunge that left resorts deserted, Spain’s tourism engine has roared back. Foreign arrivals have set records year after year, culminating in total tourist numbers of 97 million in 2025. Today, Spain sits as the world’s second-biggest tourist destination, trailing only France, and industry observers increasingly expect 2026 to extend the run of strong gains. “I think this is going to be a great year,” Fuster notes. “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.”
Analysts had for some time penciled in more modest growth for 2026, but the conflict involving the United States, Israel and Iran has altered travel dynamics in Europe and the broader Middle East. The crisis has redirected some tourism away from the Middle East and toward safer, familiar shores in Southern Europe, including Spain. Said another expert, Francisco Femenia-Serra of Madrid’s Complutense University, part of the reason Spain benefits is that some travelers who would have gone to Turkey or Egypt may opt for Spain instead when prices are competitive. He emphasizes that short-term fluctuations in regional conflicts can spur inbound bookings during moments of crisis.
Official data reinforce the buoyant mood. Spain registered 9.1 million international arrivals in April, a record for the month and up 5.2%—roughly 450,000 more visitors—versus April 2025. The tourism boom comes despite concerns about fuel costs and a domestic backlash in some tourist hubs over crowdedness, congestion and rising housing costs. Spain’s tourism directly accounts for about 13% of GDP, underscoring the sector’s role in supporting growth that has outpaced other major European economies in recent years.
But the revival is not without its tensions. Since 2024, cities along the Mediterranean coast, including Barcelona and hot spots in the Balearics and Canaries, have hosted protests over what locals see as the heavy footprint of tourism. A YouGov survey published in September 2024 found that 28% of Spaniards held negative views of foreign tourism, the highest across the countries surveyed, and two-thirds expressed sympathy with protesters. Locals point to congestion in city centers, environmental concerns, and, most pointedly, housing pressures linked to renting.
The housing dimension has sharpened political and policy debates. In 2025, Prime Minister Pedro Sánchez warned that “there are too many Airbnbs and not enough homes.” The government subsequently fined a vacation-rentals platform €65m for advertising unlicensed units. Local governments have stepped up measures to curb tourist flats; Barcelona has pledged to revoke licenses for all 10,000 short-term apartments by 2028 and to raise the tourist tax charged to cruise-ship visitors. The rent issue has galvanized activists and economists alike, with calls to restore a balance between tourism and residents.
Industry groups warn that tightening controls could carry costs of their own. The PwC Barcelona license-revocation plan, cited by the holiday apartment sector, warns of potential yardage losses in competitiveness and thousands of jobs at risk in a city where tourism is a lifeblood of the economy. For now, Benidorm’s tourism leaders project another banner year, underpinned by a combination of international demand and Spain’s enduring appeal as a safe, affordable, and accessible destination.
As the year unfolds, the country appears positioned to consolidate its recent gains. Benidorm’s Fuster reiterates the balancing act: “We are the industry of happiness, but we must recognize the impact on everyday life and work to ensure that visitors and residents can share the same spaces with respect.” The industry’s trajectory will hinge on how Spain manages the twin pressures of international demand and domestic housing concerns while continuing to offer a competitive value proposition in a crowded European tourist market.
