At present, the economy of Altea is based on tourism, which started to grow in the 1950s because of its good weather, beaches and the labyrinthine streets with whitewashed house-fronts that characterize the town. Altea is protected on the north by the bluffs of the Serra de Bèrnia, creating an especially mild microclimate. Its seafront esplanade is planted with palms.

This maze of cobbled narrow and crooked streets with glimpses of the bay is one of the better features of the town. Other sights include the church of La Mare de Déu del Consol ("Our Lady of Solace"), easily identifiable by its picturesque blue and white domes, tiled with glazed ceramics. There are numerous quaint restaurants near the church, some with a view over the Mediterranean. Note that, if visiting by car, you will need to park several blocks away from the church area as the immediately surrounding area is either off limits to cars and/or the streets are so narrow and steep (or have stairs) that cars cannot pass.

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The medieval castle overshadowing the Guadalest valley was originally built in the 11th century, during the Muslim rule over the Iberian Peninsula. It served to control the valley, as infighting between the smaller kingdoms left by the disintegration of the Caliphate of Córdoba was constant.

In the 13th century, after the Christian conquest of the region, the castle and the town were incorporated into the Kingdom of Valencia by James I of Aragon. As Christian colonization was anecdotal, Muslim inhabitants of the region were allowed to remain in the valley and work its land until the expulsion of the Moriscos. The site then changed hands over the centuries.

On June 22, 1644, an earthquake partly destroyed the fortress. In 1708, during the War of the Spanish Succession, a mine blew up its western aisle during a battle. Nowadays, only a small, ruined, portion of the castle still towers over the valley.

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