From the rooftop terrace of a hotel, Fede Fuster surveys Benidorm, taking in the cluster of high-rises and the town's iconic wide beach.

"Despite its strengths and shortcomings, this is a destination that fills us with pride," he notes. "It remains full of possibilities."

Fuster leads the local tourism association, and his relatives were among the first to open a hotel in the Mediterranean resort during the 1950s.

Benidorm's year-round population stands at 77,000, yet it multiplies roughly fivefold at peak summer season thanks to its draw as a leading Spanish holiday spot.

After the pandemic emptied resorts like Benidorm and halted the national tourism sector, recovery has been striking. Foreign arrivals have set new records annually, reaching 97 million in 2025.

Now the world's second-most visited country after France, Spain looks set to build on that momentum through 2026.

"This promises to be an outstanding year," Fuster predicts. "We are optimistic about hitting 100 million visitors nationwide. Continued growth could soon place us at the global top."

Analysts had forecast more tempered expansion for 2026. However, the US-Israeli conflict with Iran has positioned Spain as a safer choice than Dubai or eastern Mediterranean spots such as Turkey and Cyprus.

"During periods of crisis, strikes or conflict, reservations consistently rise," Fuster observes, recalling a parallel surge in 2011 amid the Arab Spring, though he stresses a preference for fair competition.

"Whenever instability hits the eastern Mediterranean or Middle East, Spain registers as a reliable destination," explains Francisco Femenia-Serra, a geography lecturer at Madrid's Complutense University.

He adds that some travelers who might choose Turkey or Egypt for lower costs are instead selecting Spain.

Official figures support the trend. Spain recorded 9.1 million overseas arrivals in April, a monthly record and 5.2 percent above the prior year, equating to 450,000 extra visitors.

Dubai International Airport, by contrast, experienced a 66 percent drop in passengers in March as flights and bookings fell sharply amid regional tensions.

Tourism accounts for 13 percent of Spain's GDP and has fueled economic expansion that has surpassed France, Germany, Italy and the UK in recent years.

One looming risk involves rising fuel prices that could limit European outbound travel.

A second major issue is domestic: mounting resident frustration over tourism's effects on local communities.

"Tourism long enjoyed broad acceptance as a beneficial economic driver," Femenia-Serra says. "That perception shifted after 2016 and 2017 when overtourism labels attached to cities such as Barcelona."

"Today most Spaniards under 45 hold a more nuanced view, recognizing both gains and drawbacks in daily life."

Since 2024, Barcelona and other coastal, Balearic and Canary Island hubs have witnessed summer demonstrations against high visitor volumes.

A Europe-wide YouGov survey from September 2024 revealed 28 percent of Spaniards hold negative opinions of foreign tourism, the highest share among surveyed nations, while two-thirds expressed sympathy for the protests.

Resident complaints center on city-center crowding, environmental strain and, most acutely, worsening housing affordability. Fresh rental protests have emerged recently, frequently linking tourism to the crisis.

In a Valencia bookshop, tenants gather with Sindicat de Llogateres representatives to address housing challenges. Many report sharp rent hikes when contracts are renewed.

"We face two distinct markets: tourist lets and residential rentals," says representative Jordi Vila. "Owners now set renewal prices based on foreign visitor salaries, often three or four times local levels, displacing residents."

He cites Barcelona as the clearest case, where tourist accommodation has turned the historic center into something resembling a theme park.

In Asturias, recent graffiti on holiday rentals reads "Your business, our ruin."

While groups like the tenants' union press their case, the left-wing government has flagged tourist accommodation as a concern. In 2025 Prime Minister Pedro Sanchez noted excessive Airbnbs and insufficient homes; in December the platform received a 65 million euro fine for unlicensed listings.

Local authorities have introduced curbs on permits and arrival management. Several cities now limit new tourist-flat licenses, and Barcelona plans to phase out all 10,000 short-term apartment permits by 2028 while doubling the cruise passenger tax to eight euros.

Activists welcome the steps yet call for stronger action. Industry bodies such as Exceltur urge restoration of trust between tourism and residents.

The holiday-apartment sector cites a PwC analysis warning that Barcelona's license revocation could harm competitiveness and eliminate thousands of jobs.

Femenia-Serra notes that cities continue testing approaches. "Existing measures aim to lessen tourism's footprint and spread visitors differently, yet none has proven effective at actually lowering total numbers."

In Benidorm, as another record summer approaches, Fuster recognizes the sector's challenges. "We describe ourselves as the industry of happiness, yet we must acknowledge our impact on everyday life."

"The warmth of our welcome and the quality of life we offer are what visitors truly value, and that is our strength," he concludes. "We must work hard in places where residents feel unwelcoming, because losing that goodwill would be fatal."