This paper constructed the theory model of the impact of tourism expansion on the industrialization, and analyzed the influence of the tourism expansion to the industrialization by using dynamic panel method based on the panel data from 58 tourist cities in China from 2000 to 2014 from macroscopic and specialized dimensions and considered different scales and regions. The results are as follows: on the macro level and in three test categories tourism expansion had negative effect on industrialization. Currently, there is “travel curse” effect in China's tourist cities, which blocks the deepening of its industrialization. According to the specialization study, the negative effect of tourism expansion on industrialization, from big to small, was the tourism of high specialization, low specialization and semi-specialization. The scale study found that the tourism expansion of medium-sized tourist cities had the most significant negative effect on industrialization, while the small tourist cities were the second, and the large tourist cities were the least significant. The region study showed that the impact in the tourist cities of the central and west regions was the comparatively prominent; while in the tourist cities of the eastern region it was not statistically significant. This provides reference for tourist cities to take effective measures to prevent the “travel curse” effect and to properly handle tourism and industrial relations.