Quality improvement is one of the strategies that many tourist destinations are currently using in order to increase their competitiveness in international tourist markets. In this respect, this paper analyses existing perceptions on the quality of Nerja as a tourist destination by using a measurement tool to specify and quantify perceived quality levels. The method used in this paper is a modified version of the well-known SERVQUAL scale, widely used to measure quality of service. Apart from verifying the validity of the tool used, the results of this study highlight the importance of hotel services, the climate and the beauty of the landscape, and the friendliness of personnel towards customers. It must be pointed out, however, that overcrowding stands out as the biggest problem which may adversely affect Nerja's future as a tourist destination.