Final answer:
In 'The Alchemist' by Paulo Coelho, Santiago's money is stolen when he is distracted by a street performance in Tarifa.
Step-by-step explanation:
In Paulo Coelho's novel The Alchemist, what distracts Santiago and allows the young man in Tarifa to steal his money is a distraction created by a street performance. Santiago is fascinated by the variety of performers and the atmosphere of the marketplace, and while his attention is captivated by the entertainment, the young thief takes advantage of the situation to take Santiago's money.