Tool add-ins are similar to buttons, with the exception that tools require some type of interaction with the map. The Zoom In tool, for example, is a type of tool. Tools should be placed inside a toolbar or tool palette. The properties are much the same as you'd find with a button. You'll also need to edit the Python script.
Tool class has a number of properties including
cursor property sets the cursor for the tool when it is clicked, and is defined as an integer value corresponding to the cursor types, as follows:
By default, tools are enabled. This can be changed, though, ...