Domestic Determinants Of China Foreign Exchange Earnings From Tourism

Since china carried out the reform and opening up, China's industry have developed rapidly with the increasing of economy。The tourism also developed rapidly, the proportion is increasing. Tourism can be divided into outbound,inbound tourism and domestic tourism. With China's entry into WTO, the amount of inbound travelers and tourism revenue increased. Therefore the inbound tourism became an important part of tourism. In this thesis, we analyzed the factors affecting the foreign exchange earnings from tourism. Based on this, we put forward polices and measures.From the Angle of tourism destination we analyzed the factors affecting the tourist foreign exchange income. This paper can be divided into four parts. In the first part, this paper introduces the background and significance of the research of the factors affecting the tourist foreign exchange income and present situation of the research. In the second part, the paper introduces the related theory of tourism, including the definition of travel and definition of demand of tourism, the definition, the present situation of tourism, especially inbound tourism, the factors influencing tourism demand. In the third part, based on time sequence method, the panel data model, we construct the empirical model analyzing the factors influencing the inbound tourism. Through the time series analysis we can conclude that total volume of foreign trade and exchange rate are two important factors. Through the panel data analysis we can draw a conclusion that other significant factors include total volume of foreign trade, education level, passenger turnover, garden area and Olympics.Finally based on the empirical analysis, we proposed policy recommendations. If a country wants to increase foreign exchange income, it should pay attention to the exchange rate, increase the investment in infrastructure, improve urban environment, education investment, the quality of people to attract more foreign tourists.