The present study has attempted to investigate the contribution of tourism to various macroeconomic variables of China. Secondary data has been used in the study for the five-year period of time. The findings of the study shows that over the last five years there was a gradual positive growth in tourist receipt, employment, development of supportive industry and so forth except a sharp fall in 2003. The growth in each variable was lower in 2002 than that of 2004. The study has concluded that there was a positive impact of tourism industry on the macroeconomic development of Shanghai
