The research analyzes the effect of the liberalization of exchange rate in Egypt on the domestic tourism through the use of descriptive data published between 2010 and 2017 on the liberalization of the exchange rate and domestic tourism and the impact of the liberalization of the exchange rate on domestic tourism. The research concluded several results, including that there is a strong relationship between inflation That result from the liberalization of the exchange rate and domestic tourism through two dimensions: The first is to reduce the purchasing power of the consumer of domestic tourism services as a direct result of the state inflation experienced by the society in Egypt since 2016 and so far. The second dimension is the result of the liberalization of the direct exchange rate on domestic investment in the Tourism filed, both dimensions led to a negative impact on the domestic tourism, requires the State reducing the effect and creat a quick corrective to avoid the negative impact.