This paper uses input/output to calculate the total, direct and indirect carbon emission of China’s tourism industry in 2002, 2005, 2007, 2010 and 2012, and applies LMDI to decompose the total carbon emission variables. Results show a rising overall carbon emission but a falling carbon emission intensity, mainly contributed by transportation, food and lodging, and shopping. Indirect carbon emission amounts to 70% of total emission. Rise of tourists and rising personal expense are key reasons in boosting carbon emission in tourism industry. Descend in carbon emission intensity can effectively impede carbon emission. Income structure has no impact on carbon emission. This paper presents the major paths to reduce carbon emission in tourism industry, including reducing carbon mission intensity, converting tourists’ consumption habitats, and controlling tourism size. It needs actions from transportation, food and lodging and shopping, and from intermedium industrial departments as well.