In international financial and trade activities, exchange rate implements the function of conversing price. Changes in exchange rates are mainly referring to the price between two currencies. These changes have been impacted not only a country's foreign import and export trade, also the tourism, a particular services trade related with non-trade foreign exchange. Nowadays, outbound tourism, as an important component of China's tourism industry, has been developing rapidly and become a focus with the RMB continues appreciating. In that case, do RMB exchange rate movements affect the development of outbound tourism?
According to traditional theory analysis, with the appreciation of RMB, China's outbound tourism development will have a certain impact. To reflect more accurately the impact of RMB exchange rate movements on China's outbound tourism, this paper uses related annual data from 1985 to 2008, to analyse RMB relationship of exchange rates and China's outbound tourism on the basis of partial equilibrium theory .
The results have shown that the RMB exchange rate movements impact significvantly on the development of China's outbound tourism, which is mainly expressed from the scale of China's outbound tourism, the consumption level of tourists, and the tourists' choice of destination.
The author suggested that, while the outbound tourism market is developing rapidly, China should also prevent the appearing of "overheating". Therefore, China should have a developing perspective of tourism policy to make China's tourism economy step toward a positive direction.
