An Empirical Study On The Impact Of RMB Exchange Rate Fluctuation On The Bilateral Trade Of Tourism And Major Markets In Yunnan Province

Tourism Industry is one of the pillar industries of Yunnan Province, and hasformed its own unique characteristics. Under the macro background of changingtourism industry into strategic pillar industry, further implementing the "bridgehead"strategy and starting the financial comprehensive reform pilot areas of Yunnan andGuangxi Provinces, tourism of Yunnan Province has the new opportunities andchallenges. Because of the geographic advantage in southwest border region, YunnanProvince has traded with other countries more frequently for many years. As a tool ofmeasuring the trade between two countries, exchange rate works as an importantfactor of influencing the development of Yunnan Province. Fluctuations of the RMBexchange rate have profound impacts on Yunnan’s development of tourism industry inrecent years. After the second reform of RMB exchange rate, exchange rate influencesYunnan’s GDP by impacting the foreign exchange income of Yunnan Province.Tourist foreign exchange receipts added from$528million to$1.947billion from2005to2012, which accounting for ten percent of the contribution to the tourismindustry of Yunnan. The study of fluctuations of the RMB exchange rate and itsimpact on tourism has obvious regional theory and the practice significance.In this paper, a new viewpoint is that fluctuations of RMB exchange rateimpacting on tourism. This paper analyzes the time and space characteristics of thetourism development in Yunnan Province and analyzes the foreign trade backgroundconditions of the Yunnan’s tourism development. What’s more, it selects andconstructs the factors and models of RMB exchange rate in fluctuations impact on thetourism development in Yunnan province. It evaluates the RMB exchange ratevolatility’s influence on the bilateral trade of the main market. In this paper, I putforward corresponding ideas and countermeasures of tourism development in Yunnanprovince. In order to sustain the development of tourism industry, a theoreticalperspective and regional practice basis have been provided.