Abstract
The Penghu Islands have developed a tourism industry for more than 30 years, and the other remote Taiwan's small islands such as Kinmen (Quemoy), Matsu, Lu (Green), Hsiao-Liuchiu (Small Ryukyus), Lanyu (Orchid), Kueishan and Keelung have also been promoting tourism in recent years. Islands in nearby foreign countries such as Bali, Phuket, Okinawa, Guam, and Palau have also been attracting many tourists from Taiwan. This paper examines tourism development in the Penghu Islands from public and private sector perspectives both of which are being promoted rapidly because of tourism demands. Tourism development of Taiwan's small islands is in a condition of 'spatial alternation'. More competition between Taiwan's small islands and those in neighboring countries for tourists is becoming obvious. However, tourism development in the Penghu Islands has a bright future, not only because there are adequate supports of the public sector, good marketing of the private sector, and high demand of tourists, but also they already have greater international visibility.