The article holds that after over twenty years’ development,China’s tourism industry not only registers sharp rise in number and scale,but also undergoes great changes in the operational condition and environment.China’s tourism industry is evidently under a period of transformation.1.Changes in the overall development pattern:the traditional in\|bound tourism development pattern meets with challenge;the position of domestic tourism is being upgraded fast and the consumption level is increasing rapidly;out\|bound tourism develops dramatically;2.The transformation of the relationship between supply and demand:supply is more than demand in terms of hotels,tourist attractions and transportation system.Of course,there still conceals the phenomenon of shortage in spite of surplus;3.The increase mode of the tourism industry is now being transformed from the mode of scale economy into that of systematic economy;4.The space layout of the industry is being transformed from \!small centres\" into \!multi\|centres\".Short itinerary area travel will replace long itinerary travel;5.The organizational structure of the industry will be transfered towards internationalization,conglomerates and medium\|agent organizations.