The analysis will be taken up with reference to the market analysis, internal analysis, competition that it faces and structure and role of the Canary Islands. During recent times, the Canaries have applied a number of strategies for achieving sustainable development with regards to the islands’ environmental factors. Market analysis of the Canary Islands will be presented in this part on the basis of the prevalence of the demand in these islands. The best possible way of analyzing the market of the Canary Islands would be to review the number of arrivals there with the help of previous records. The tourists’ arrivals will represent the prevalence of demand in the region during previous years. Considering the number of tourists’ arrival in the Canary Islands, it can be mentioned that not only the number of visitors were high but the distribution of these visitors throughout the year was even as well. In other words, the demand was distributed homogeneously over the year. The inbound tourism market of the Canary Islands is diverse, with tourists arriving mostly from Germany and the United Kingdom. Thus, the target market for the Canary Islands is highly concentrated in the European countries. Data of the year 2002 reveal that 90% of the tourists’ arrival had occurred from the European countries. According to the views of the holidaymakers, the most important reason for choosing the Canaries as a holiday destination is due to its weather, scenic beauty, beaches and peace in the atmosphere (Garin-Munoz, 2004).The internal analysis of the Canary Islands revolves around the economic, political and social perspectives of the region. According to the economic data of the year 2006, the tourism industry in the country represented 37% of the GDP.