This thesis proposes a model of five forces combined with sustainable development to propose sustainable strategic management for the hotel industry. We demonstrate Taiwan’s hospitality industry, limiting our research to Japanese arrival/outbound tourists. We recommend using a competitive strategy for inbound visitors from Japan by providing quality food, lodging, and entertainment services to high-income Japanese customers. Taiwanese visitors to Japan are influenced by sustainability, bringing back experiences that sustainably demand hotels. Fierce competition in Taiwan’s hotel industry has reduced high-income tourists from Japan. Overall, we recommend that hotels in Taiwan consider sustainability and restructure hotel management to compete, not within Taiwan but in Asia, to attract more inbound travelers.