Eh, kinda hard to tell.
Salsa music is not popular with everyone, and he was probably entirely right in saying that no one else would like it, or at least not to the degree that they would. When you have a dancefloor of people to please and a selection of hits that have proven again and again to be succesful in getting them entertained, you play the hits. I don't even like artists like Lady Gaga, Kesha, Lily Allen etc, but if I've been out with a big crowd and everyone has started dancing it's music that I feel comfortable enough with to go along with it, partly because I acknowledge that my preferred music, classic rock and roll, is equally not fun for everyone.
So his actions in not playing it are totally justified.
However, depending on how he intended 'your music' to be intepreted, he might have been being personally racist. If he just meant your music as in 'music which I have not approved for my list' then see above. If he meant 'your music' as in 'the music of the Hispanic people' then yeah, racist. Still probably right, but racist. I suspect though that he would have said the exact same thing to me had I brought along a CD of Rainbow's greatest hits. Would that have made him racist again British people?