Abstract: 【Objective/Meaning】The analysis of the development status and competitive situation of rural homestay industry in Pingtan international tourism island was helpful to formulate the corresponding promotion strategies and promote the stable and healthy development of rural homestay industry in Pingtan. 【Methods/Procedures】By using the Michael Porter's Five Forces Model, the competitive environment of rural homestay industry in Pingtan international tourism island was analyzed from five perspectives. 【Results/Conclusions】The results showed that in the development process of rural homestay industry in Pingtan international tourism island, there were some existing problems such as the homogenization of cultural products and low brand awareness, etc. Based on the above problems, the countermeasures driven by the cultural innovation were put forward including strengthening the cultural exchanges with Taiwan to integrate the cultures of Fujian and Taiwan, taking the cultural experience as the core to launch the featured cultural and creative products, enhancing the popularity of Pingtan to build the excellent brand of rural homestay, building an training system for professional talents to provide the high-quality services of homestay.