Vital tourist industry faces fallout from resort blasts

MONDAY’S attacks on Dahab are expected to have an immediate impact on Egyptian tourism, which is the country’s main source of foreign exchange.

The industry brought in some €4.9bn in 2004. Resorts in Sinai, including Dahab, account for 25% of the country's hotel beds.

However, Egypt recovered quickly from last July's attacks in Sharm el-Sheik, where suicide bombers killed 64 people, mainly tourists. Within four weeks of those attacks, major hotels in Sharm were reporting occupancies of 70%.