With the continuing escalation of cross-strait cooperation and interaction in tourism industry, Taiwan's inbound tourism made an unprecedented leap in 2012. Affected by the island's economic development, Taiwan's domestic tourism market dropped slightly. Due to the increase of visa-free countries opening to Taiwanese, the outbound tourism market continued to grow. With the Taiwan authorities' efforts to promote the "Project Vanguard for Excellence in Tourism", to expand inbound tourism market by adopting a number of incentives, to strengthen the safety and protect the legitimate interests of tourists, Taiwan's inbound tourism market will be developed, and the product structure will also change accordingly. The implementation of "Tourism Law" in mainland China will affect tourism market to Taiwan, and there exists challenges as well as opportunities. The further implementation of agreements on trade in services across the Taiwan straits will be conducive to the mutual benefit and double win of cross-strait tourism industry. <<