"I've been working in Dahab 14 years, " he added in a controlled sob.

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Distinctly chilled-out, non-flashy and ultra-friendly, Dahab pairs all the amenities of a holiday town with a more authentic Egyptian experience.

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Tourism is by far the biggest source of revenue for Dahab and other Red Sea resorts, like Sharm el-Sheikh and Taba.

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Sudan's official news agency quoted negotiator Omar Dahab as denying the claims.

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For beginners, Dahab offers an enticing mix of superb shallow, shore-accessed dives and plenty of fellow novices to share a beer with afterwards.

BBC: Red Sea diving: Alternatives to Sharm el-Sheikh

Victims of the bombings in Kusadasi, Turkey, in 2005, in Dahab, Egypt, in 2006, and in Mamaris, Turkey, in 2006 are also entitled to financial support.

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The tourists, both 31, were in a car Thursday morning headed to a hotel from the town of Dahab when they were stopped, the state-run Ahram newspaper said.

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The news anchor was conducting a telephone interview with a Dahab tourism industry worker who'd run out of his hotel in panic after hearing one of the three explosions.

CNN: Facing up to terror in the Middle East

Budget-conscious travellers flock here for the guesthouses and hostels, but Dahab has evolved to offer plenty of family-friendly and mid-range accommodations as well, making it an excellent option if you prefer to forgo fancy hotels in favour of low-rise, independently-operated places.

BBC: Red Sea diving: Alternatives to Sharm el-Sheikh