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In the new century, with the fast development of globalization and economic integration, the market competition mode has changed a lot, so does tourism industry. The competition among single tourism enterprises, which will be replaced by that among systems of travel industry at the end, will no longer exist. But small-and-medium enterprises are the main component of tourism industry in our country, and most ofthem are faced with many problems, such as poor management, lack of innovation ability and the notion of cooperation, etc. In order to concentrate the strength of tourism industry in China, the government has constructed many tourism enterprise groups, most of which are in bad condition now, because of awful management system and harsh programming. After joining WTO, the competition of tourism in China will become more severe, but all aspects above will make native tourism enterprises unable to compete with foreign large ones. Therefore, our government should, under the guidance of the market, encourage the construction of tourism enterprise cluster, which can quickly absorb enough capital, technology, talents to strengthen the innovation capacity of small-and-medium enterprises, and to promote the development of tourism industry. Once such cluster characterized by the coexistence of some core enterprises and network were build, most of the bottlenecks that constrain the further development of tourism industry would be eliminated, and the tourism industry of our country would become more competitive.Just as what Marx says, everything will wither away ultimately, tourism enterprise cluster is no exception. After experiencing the stage of spontaneous convergency, fission and aggregation, fast development and maturity, the cluster will step into the stage of recession, which will bring great negative influence on the development of local tourism industry and regional economy. Hence, it is very essential and urgent to find out the proper way so as to realize sustainable development of cluster in our country. To achieve it, government, entrepreneur and guilds, that play important roles in the process of cluster formation, should coordinate and control the lifecycle of tourism enterprise cluster on the basis of the principle of the market, and try to speed up the development process of cluster, and prolong thematurity stage. Meanwhile, we should also accelerate the formation and development of the cluster’s network operating mechanism characterized by the coexistence of competition and cooperation. With the help of such mechanism, our cluster can obtain the capacity of constant innovation and rationally adjust the institutional framework by itself, which can help to realize the sustainable development of tourism enterprise cluster as well as tourism industry in China.
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