Craft Souvenirs are one of the cultural tourist attractions. They are also one of the international tourist expenditures items and thus they are considered as a source of tourist revenues which indicates its role in the tourism industry. Consequently, it should to identify the determinants of tourist demand of craft souvenirs in order to be able to identify the factors that encourage tourists to purchase them and thus maximize their economic role in the tourism industry. The study adopted a case study approach, whereby 100 survey questionnaires were distributed to international tourists in Khan EL-Khalil district in Cairo. The results revealed that the local atmosphere is the most important characteristic that encourage tourists for shopping from Khan EL-Khalili district. The results also indicated that the more authentic souvenirs are, the more tourist demand on them increases; regardless of the varied perceptions of tourists about the concept. The results also indicated that there is a statistically significant relationship between the purpose of the trip and the percentage that tourist spends on souvenir craft products.