Spain is having a moment, and it’s not just because of its sunny beaches and stunning architecture. The country’s tourism industry is booming, helping its economy grow faster than even the United States. Last year, Spain’s GDP expanded by 3.1%, outpacing the US’s 2.8%, according to recent estimates.

What’s behind this impressive growth? A surge in visitors, especially from the US, is playing a big role. American tourists like Lucy Lisberg, a student from Chicago, are flocking to Spain for its affordable prices, rich culture, and iconic landmarks. “I love it here,” Lisberg said during her visit to Madrid. “The architecture, the food, everything is amazing.”

Spain welcomed a record 94 million international visitors in 2023, who spent a whopping €126 billion ($132 billion). Tourism now makes up over 12% of the country’s GDP and provides nearly the same share of jobs. Experts say the sector has evolved beyond just “sun and beach” vacations, with travelers now seeking out high-end experiences like wine tours and cultural getaways.

The strong dollar has also made Spain an attractive destination for Americans. With the euro near parity, US tourists are getting more bang for their buck. Airlines are taking notice, with American Airlines planning new routes to Madrid and United Airlines extending seasonal flights to meet the demand.

But it’s not just tourists boosting Spain’s economy. The country has seen a steady influx of immigrants, mostly from Latin America, who are contributing to its workforce and consumer base. Additionally, Spain’s reliance on natural gas from North Africa shielded it from the energy price spikes that hit other European nations after Russia’s invasion of Ukraine.

While Spain’s economy is less dependent on US trade than other European countries, experts warn that potential US tariffs could still have an indirect impact. However, Spain’s strong tourism sector and diversified economy are expected to keep it ahead of the curve.

For now, Spain is riding high, thanks in part to its visitors from across the pond. As one economist put it, “The trade shock is going to be smaller for Spain compared to others.” With growth projected to continue outpacing the eurozone, Spain’s sunny outlook shows no signs of fading.