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Influence of Exchange Rate Fluctuation on China’s Inbound Tourism Chen Yining, Zhang Hui Influence of Exchange Rate Fluctuation on China’s Inbound Tourism 1 2 Chen Yining, Zhang Hui School of Economics and Management, Beijing Jiaotong University, Beijing, P.R.C 1 2 E-mail: ynchen@; peihui1@ Abstract Based on the past 20 years’ data of the 9 major tourist source countries of China, this paper analyzes the influence resulting from the fluctuations of RMB real effective exchange rate on the demand for inbound travel to China and the degree of that influence. The results of this paper demonstrate that the real effective exchange rate of RMB is in inverse proportion to the demand for inbound travel to China, and it does not impact that demand as much as the movements in the per capita income of the tourist source countries do. Reducing the reliance of inbound tourism, readjusting tourism industrial structure, strengthening the level of service and tourism product innovation might be the solutions for tackling fluctuations of the exchange rate of RMB. Keywords: Exchange Rate; Inbound Tourism; Fluctuation 1. Introduction Economic globalization is an inevitable trend stemming from the development of world economy, and it has accelerated the pace of the globali