Under the impact of modern life, the traditional culture of Taiwan’s indigenous tribes is not only affected, because the traditional life is not easy and employment is difficult, which also causes the outflow of tribal population. Therefore, after the establishment of the Taiwan Council of indigenous people (TCIP), tourism development has been listed as an important policy, and it wants to use tourism development to improve the lives of indigenous people and enhance the ability of tribal economic development. The purpose of this study is to analyze the advantages and disadvantages of TCIP in developing tribal hot spring demonstration areas in indigenous areas. This study adopts the method of case study to investigate by means of document analysis, field interview and observation. The results of SWOT analysis show that: 1) Advantages: the indigenous tribes are rich in natural resources and have unique cultural characteristics. 2) Weakness: when indigenous people invest in hot spring industry, they will face difficulties in obtaining development funds, lack of land use and hot spring management talents. 3) Opportunities: Because of the prevailing leisure culture in Taiwan, coupled with the relevant laws and policies and plans of the indigenous people, it is guaranteed that the indigenous people can participate in the development plan of the hot spring demonstration area. 4) Threats: The development of the existing hot springs in the indigenous villages and towns is mostly invested by the Han people, so it is difficult for the indigenous people to compete with them. Moreover, they lack the management ability and guidance to enter the competitive market of hot spring development.