Since the reform and opening up in 1978, China's urbanization pace has been quickened. Tourism industry has become one of the fastest-growing and largest industries. The purpose of this paper is to explore the interrelation between urbanization and tourism economy, and the influence of urbanization on tourism economic growth. Through theoretical analysis, the effects of consumption and investment are two engines, of which urbanization promotes tourism economic growth. Urbanization is mainly manifested in the population migration and industrial agglomeration, which promote the accumulation of material capital, human capital and the transformation and upgrading of industrial structure, and stimulate tourism economic development, in turn, also accelerate the urbanization level. On the basis of theoretical analysis, we employ the proportion of urban population to total population to represent urbanization using the time series data and panel data of related tourism economic development. We also construct the models to investigate the relation between urbanization and the development of tourism economy and the contribution of urbanization to China's tourism economic growth. First, from the national level, this paper employs ADF unit root tests, Engel-Granger Two-step Co-integration Model and Granger Causality Model to examine the long-term equilibrium and causeeffect relationship between urbanization and tourism economic development. The results show that there is a long-term stable co-integration between tourism economic growth and urbanization, and tourism economic growth is in the Granger causality with urbanization during the period from 1993 to 2011, but the direct effect of urbanization on tourism economic growth is not obvious. Second, from the regional level, based on the Cobb Douglas production function, we construct tourism economic growth model and influencing models of urbanization on tourism economic growth factors, the models show that the physical capital, labor, industrial structure and marketization are important factors promoting tourism economic growth from 2000 to 2011. Urbanization can accelerate the accumulation of capital and labor, upgrade industrial structure and push marketization. Urbanization has indirect positive effect on tourism economic growth. We still cannot take effectively the conduction effect of the tertiary industry between the urbanization and the development of tourism economy. The fitting results of urbanization with tourism economic growth of different regions is good, overall, the higher the level of urbanization, the more developed regional tourism economy. The study also shows the effect of physical capital elements on tourism economic growth is waning, while the effect of labor, marketization and industrial structure are gradually increasing. We can better release potential effects of new urbanization on tourism economic growth through relying on market-oriented reforms, promoting transformation of industrial structure and accelerating development of new urbanization.