With the 2016 election of Tsai Ing-wen and the Democratic People’s Party, the number of Mainland Chinese visitors in Taiwan has fallen precipitously. There is much debate as to whether or not this will prove to be a catastrophe for Taiwan’s tourism sector or whether it will even be felt. The purpose of this thesis is to ascertain the impact of the reduction in Mainland Chinese tourist numbers on the economy, and what it may mean for China-Taiwan economic and political relations. Due to the large amount Mainland Chinese tourists spend relative to other visitors, their length of stay, and their propensity for traveling to locations rarely visited by other types of tourists, the decrease in Mainland Chinese visitor numbers will have negative consequences for some parts of the Taiwanese economy. Furthermore, Chinese tourism trends in Taiwan correlate with larger Cross-Strait economic concerns, implying that what happens with tourism may be mirrored in trade. Should this prove to be the case, a cooling of China-Taiwan economic relations may be an indicator of difficult times for the China-Taiwan relationship as a whole. However, there is certainly opportunity for Taiwan’s tourism sector, and there is evidence that by refocusing on a more diverse array of visitors, Taiwan is capable managing without such heavy, and coercive, Chinese influence.

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