The Influence Of RMB Exchange Rate On Chinese Inbound Tourism And Outbound Tourism

Driven by economic globalization, the tourism industry has entered a stage of rapid development, a very promising sunrise industry. As a special service industry, tourism is an important part of the national economy. It involves a wide field, absorb employment and promote production and stimulating consumption effects, therefore, the development of tourism should be taken seriously. Tourism is a sensitive industry, its development is closely related with economic environment. Tourism is weak in anti-strike capability, so we need to explore the impact of various factors on tourism in order to ensure the tourism industry can develop healthily.Exchange rate as a price conversion index between countries,is a weathervane of international trade.It can reflect the National political and economic situation. since the founding of PRC, the RMB exchange rate is constantly changing with several changes of China’s exchange rate system. Especially1984to1994,RMB went through10years of devaluation in the implementation of dual exchange rate system.Chine reformed foreign exchange management system to establish a market-based, single, managed floating exchange rate system in1994.The RMB exchange rate changed small in the next decade.July21,2005, along with the implementation of the market supply and demand, referenced to a basket of currencies, a managed floating exchange rate system, RMB began to face the pressure appreciation of the continuing. Therefore we can not help thinking that what the RMB exchange rate will impact on this particular services trade--he tourism. In this new situation, China’s inbound and outbound tourism market will to go with the RMB exchange rate changes.So on the basis of previous research, this paper summarizes the changes in the course of the RMB exchange rate and the development process of China’s inbound and outbound tourism and analysises the transmission mechanism of the RMB exchange rate impact of China’s inbound and outbound tourism market. This paper selects the cointegration model, uses Eviews6.0to the empirical analysis and multi-anglely explores the impact of the RMB exchange rate changes on inbound and outbound tourism market in China. The results show that the real effective exchange rate negatively correlates with the total number of China’s inbound tourism.That is to say, the RMB appreciation, the total number of China’s inbound tourism decline, and vice vers.There are different results in different original tourism countries or regions and different purposes.The number of outbound tourist in China is positively related to the real effective exchange rate. The appreciation of the RMB exchange rate will promote outbound tourism developing. Finally, in the perspect of government, industry associations and tourism company, this paper proposes measures to respond to changes in the RMB exchange rate to develop China’s inbound and outbound tourism.