Abstract: Based on Statistical Yearbook of Taiwan and Taiwan "Tourism Bureau" Statistical Yearbook of Tourism in 2013, on the basis of absorbing and inheriting existing research results, the author analyses the tourism development in Taiwan from the conditions of tourism development including its present situation and combines with the policy guidance of national strait tourism circle for study. Research has shown that Taiwan has a superior location, developed economy, abundant resources, convenient transportation and good environment, all these provide sufficient conditions for tourism development in Taiwan. With the rapid economic development in Taiwan, its tourism also accelerates quickly. Inbound tourism and outbound tourism grow constantly at the same time, the area of tourism is gradually weakening, which its share in the whole tourism industry is becoming more and more smaller. Inbound tourism market is growing rapidly in Taiwan, the mainland , Hong Kong and Macao regions are gradually becoming the main inbound tourism market, intercontinental source distribution is relatively stable, there are some changes in the composition of inbound tourists. Inbound tourism and outbound tourism are significantly influenced by international relation and regional relation, the development of inbound tourism and outbound tourism market is not balanced, making tourism industry "consumption of foreign exchange industry". In recent years, with the rapid development of inbound tourism in Taiwan, especially the further tourism cooperation across the Taiwan straits, the mainland has replaced Japan as Taiwan's largest tourist source market, and the imbalance between inbound tourism and outbound tourism market is shrinking.