Shots were reportedly fired around 11pm near the ‘strip’ and the main square cluster of pubs, clubs, and restaurants in the resort, which is hugely popular with British holidaymakers.
Early reports that a British tourist was among those injured are as yet unconfirmed.
Michelle Todd, said she was sat in the bar called the Secret Garden when she heard the shots, knowing straight away it wasn’t fireworks.
She said at the time: “Two people have been shot and it’s all shut off. It’s scary. We’re not moving anywhere yet.”
Another witness tweeted: “Nothing like a rush of emotions when you’re sat in a bar in Benidorm and all of a sudden 15 cop cars pull up outside pull two people out of a car because there’s been a shooting two minutes up the road from where you’re at.”
A spokesman for Alicante Transfers said: “It seemed there was someone shot in the leg and three others involved.
“People went running from the clubs and the main strip.
The Strip and clubs have now been closed and sealed off.
“At this time the police have one black BMW and one person in custody.”