This study aims to analyze the effects of economic growth and tourism expansion on the corporate performance of tourism-related firms in Taiwan. The indicators of corporate performance of tourism firms are sales growth rate, return on assets, return on equity and stock return. The panel regression tests are used to examine the effects of changes in economic condition (measured by real growth rate) and tourism expansion (measured by growth rate of total foreign tourist arrivals) on the corporate performance of tourism companies. Panel regression test results find that can significantly explain and ,and moreover, the economic growth factor can strongly explain ,and.The findings offer important implications for tourism business owners, managers and government tourism policymakers.