Tourism is considered as one of the most important base for the social and economic sustainability of many regions or localities. Its influence is strong in different segments of society, and is an excellent source of income and socio-economic development for any region or country in the world. Considered by many, tourist activity on Madeira Island is crucial for the development of the region. The Madeira Island, located in the Atlantic Ocean, offers everything that tourist desires. Rich natural and cultural heritage, a large number of tourist attractions, activities for tourists, a specific cuisine offer of autochthonous dishes and beverages, and especially wine, which is Madeira well known for. Madeira consists ten counties, and all of them have tourism resources associated with the natural and cultural heritage. The island has a large and rare variety of domestic fauna and flora. From a geological point of view, the position of the island is such that a pleasant climate makes this place an attractive tourist center through the whole year. This work will discuss and analyse the Portuguese island of Madeira’s tourism structure. To begin with, Madeira’s geographical features, history, population, climate and economic developments will be discussed. In the main part of this work, the islands accommodation and tourist facilities will be analysed, followed by some of the more popular tourist attractions. This document concludes with statistical data of tourist traffic.