Acclaimed singer provided by Spain for their holiday spot (8)

I believe the answer is:

tenerife

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But I can't explain it at all! Could you help me understand?

(Other definitions for tenerife that I've seen before include "holiday resort" , "Largest of the Canary Islands" , "holiday island" , "There's an inter fee, strangely, on the island" , "One of the Canary Islands" .)

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