This study aims at examining the effect of some economic variables such as inflation, rising price, unemployment and EGP low purchase power on domestic tourism in Egypt and also the impact of economic situation in Egypt on what can domestic tourists do in destinations. In order to do this, a random sample was taken randomly from domestic tourists in different cities in Egypt (Hurghada, Alexandria and Sharm El-Sheikh). The sample size is 203 domestic tourists. A questionnaire close-ended on a 5 point Likert scale was distributed to this sample. The result was analysed using SPSS software V.19. The main result of this survey indicates that there is a light impact of economic variables on domestic tourism, but a clear effect on what domestic tourists do in destinations. Also, the procedures of the Egyptian government helped to soften the impact of economic variables on domestic tourism. A significant recommendation is suggested for both government and tourist businesses: businesses should depend on local goods and the government should not terminate the initiative of the Ministry of Tourism to encourage domestic tourism and help hotels and resorts to reduce the operating expenditure in the short term.