The Severe Acute Respiratory Syndrome (SARS) outbreak caused the most catastrophic disaster in Taiwan's recent past, and the greatest effects were felt instantly in the tourism industry. The purpose of this study is to assess the impact of the epidemic in Taiwan'¦s tourism industry. This research establishes two models for Taiwan's inbound and outbound tourism demand to predict the volume of tourist arrivals and departures, respectively, during and following the outbreak (March-July 2003). The forecasts are based on the time series of Box-Jenkins SARIMA models, which are then compared with the actual volume of visitor arrivals and tourist departures to analyze the impact. The empirical results indicate that during these 5 affected months, Taiwan'¦s tourism industry was devastated brutally by this disease. Based on the results, implications and recommendations are provided to the tourism authorities, and future research possibilities are also devoted.