The term "Hispanic" comes from the island of Hispaniola, which is the island occupied by Haiti and the Dominican Republic. And while Spain is, indeed, predominantly white, "Hispanic" generally refers to a mixed-race group found in the Americas. They are part white, part Indian, often have some African ancestry, and speak Spanish as a first language (this excludes the Portugese-speaking Brazilians and the French-speaking Haitians).
In Latin American countries, there is often discrimination based on whether one is a "puro" (pure white), a "mestizo" (mixed white and Indian), or an "indio."
