In the research field of the service innovation, the influence of tourism firm's innovation on its performance is investigated. Based on the innovation theory and marketing-related theory, first the empirical model for the test is developed, and then large scale data based on the survey of Yunnan tourism industry are gathered. Using the factor analysis and structural equation modeling, it is found that the innovation has a significant positive influence on the firm's performance, and its direct influence is larger than the indirect influence.