The tourism industry plays a vital role in boosting Egypt's economy. It will continue in the future, to be a key contributor to GNP, foreign exchange, employment generation, regional development, and population redistribution. Over the longer term, it may have additional ancillary impacts, such as promoting environmental improvement, infrastructure development, modernization, and workforce expansion.

    The city has turned to a hub of activities to meet the promising investment prospects. New beaches were expanded and tourist villages were established to accommodate the flow of tourists who flock to enjoy the unique environmental facilities.

    The increase in tourist influx and tourist nights was tremendous. The number of tourist arrivals increased from eight thousands in 1982 to 1.2 million in 2000.

    Guest nights also increased in that period of time from 16 thousands to 5.1 million. The total number of resorts was increased from 3 in l982 to 91 in year 2000, therefore a highly reputable management companies have been attracted to invest in this city such as Hayat Regency, Accor, Marriot, Le Merredian, Four Seasons, Ritz Carlton and others, with a categories between five stars to three stars.

    Visitors of Sharm El-Sheikh experience a variety of water and land activities. Beach seekers find enormous activities such as diving, snorkeling, wind surfing, , pare sailing, banana boats, and canoes.

    Adventurers and sportsman find Sharm El-Sheikh a heaven offering diverse activities such as golf, tennis, horseback riding, camel riding, volleyball, and desert safari to various oasis and wadies.

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