This paper examines the role of tourism in Spain's long-run economic development. The tourist-led growth hypothesis is tested, and the results indicate that, at least during the last three decades, economic growth in Spain has been significantly influenced by the persistent expansion of international tourism. The increase in this activity has produced multiplier effects over time. External competitiveness has also been proven to be a fundamental variable for Spanish economic growth in the long run. The empirical analysis suggests that government policy, in terms of supply adequacy and promotion of tourist activity, may have positive effects on income. Spain's importance as an international tourist destination and the significant role of foreign exchange income in its economy are highlighted. The paper discusses the relationship between tourism and economic growth, emphasizing the long-term impact of tourism on income and the role of external competitiveness. The analysis uses a tourism growth model and time series analysis to examine the relationship between tourism and economic growth. The results show that there is a long-run cointegrating relationship between tourism and economic growth in Spain. The findings suggest that tourism has a positive effect on Spanish economic growth and that the multiplier effects of tourism are significant. The paper also highlights the importance of external competitiveness in the long-run growth of the Spanish economy. The results support the hypothesis that tourism is a major determinant of long-run economic growth in Spain. The paper concludes that public intervention is necessary to promote and increase international tourism demand and to develop tourism supply. It also warns about the potential dangers of underestimating the importance of expenditure in tourist infrastructure, undervaluing financial support for entrepreneurial initiatives, and minimizing the significance of protecting natural and sociocultural resources.This paper examines the role of tourism in Spain's long-run economic development. The tourist-led growth hypothesis is tested, and the results indicate that, at least during the last three decades, economic growth in Spain has been significantly influenced by the persistent expansion of international tourism. The increase in this activity has produced multiplier effects over time. External competitiveness has also been proven to be a fundamental variable for Spanish economic growth in the long run. The empirical analysis suggests that government policy, in terms of supply adequacy and promotion of tourist activity, may have positive effects on income. Spain's importance as an international tourist destination and the significant role of foreign exchange income in its economy are highlighted. The paper discusses the relationship between tourism and economic growth, emphasizing the long-term impact of tourism on income and the role of external competitiveness. The analysis uses a tourism growth model and time series analysis to examine the relationship between tourism and economic growth. The results show that there is a long-run cointegrating relationship between tourism and economic growth in Spain. The findings suggest that tourism has a positive effect on Spanish economic growth and that the multiplier effects of tourism are significant. The paper also highlights the importance of external competitiveness in the long-run growth of the Spanish economy. The results support the hypothesis that tourism is a major determinant of long-run economic growth in Spain. The paper concludes that public intervention is necessary to promote and increase international tourism demand and to develop tourism supply. It also warns about the potential dangers of underestimating the importance of expenditure in tourist infrastructure, undervaluing financial support for entrepreneurial initiatives, and minimizing the significance of protecting natural and sociocultural resources.