Recreation environment which meets participants’ demand leads to the success of a scenic area. Market segmentation is one of the basic planning concept to understand different tourists’ recreation demand. The objective of this research is to explore the relationship between tourists’ participation behavior, demographics and recreation demand of Tsengwen Reservoir Scenic Area. The survey was conducted by convenience sampling and 330 valid questionnaires were collected. The research findings are: (1) Tourists’ recreation demand is high at Tsengwen Reservoir Scenic Area. (2) In spite of different participation behavior, the tourists have consistent high recreation demand. (3) In spite of different demographics, the tourists have consistent high recreation demand. Based on the above findings, the recreation demand of all the tourists at Tsengwen Reservoir Scenic Area should be met and this study develops various managerial strategies and suggestions to related government agencies.