abstract:This study analyzes the potential and value for developing sustainable ecotourism in the Pescadores archipelago. Travel Cost Method (TCM) and Contingent Valuation Method (CVM) are applied to evaluate the recreational value and willingness-to-pay for residents and tourist. Empirical results show that island ecotourism generated about NT$249,800,130 (the benefit-cost ratio of Wang-An island is 1:2.42., and Magong island, Bai-Sha Ci-Mei are 1:0.34, 1:1.51 and 1:0.38 respectively). Interview results show residents and tourists agree that Pescadores archipelago have good geographical position and attracted sight-seeing resort to attract tourists. A mechanism for sustainable eco-tourism community development is constructed for a sustainable island ecotourism industry, and suggestions for the sustainable development, planning and management of island ecotourism in the Pescadores archipelago also provided.