The Countermeasures For China's Tourism To Deal With The Impact Of Exchange Rate Changes

The relationship between exchange rate and economic development is always a focus of scholars and researchers. Tourism industry involves large tourist flows between countries, and has relationships with many aspects, such as food & beverage, hotel, transportation, touring, shopping and entertainment. Tourism industry will be sensitively exposed to currency exchange rate changes. Since China's exchange rate system reformed in July of 2005, the RMB exchange rate against the world's major currencies has changed a lot. This is an opportunity, but also a challenge to China's tourism development. So, studying the impact of the changes of exchange rate on tourism industry and giving some suggestions have both theoretical and practical values.With an analysis of statistics, we find that both inbound and outbound tourism are promoted during RMB appreciation, different from what those theories expect. Actually, it's a short time since the reform of RMB exchange rate, and the process of its appreciation is gentle and somehow has been controlled. So to give a clear conclusion about the impact is pretty difficult. But the ultimate goal of the reform is to achieve an exchange rate system regulated by the market. So, in a long term, it is inevitable for the tourism industry to face the impact of the exchange rate fluctuations. In another hand, China's tourism industry still has many problems and shortcomings, with no ability to cope with frequent exchange rate changes, especially in the continued fierce international competition. Therefore, in the end, the author tries to give some suggestions from three perspectives of government, industry and enterprises, hoping that it can help China's tourism industry successfully deal with exchange rate risks.