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The killings come as Israeli and Palestinian negotiators are due to resume peace talks in Taba, Egypt.
CNN: Killings overshadow Mideast talks
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We were taken out of Taba about four hours after the explosion and we are now in another hotel.
BBC: NEWS | Middle East | 'It must have been a massive bomb'
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He participated in discussions at Camp David in July 2000 and in talks in Taba, Egypt, in January 2001.
CNN: Palestinian PM nominee is skilled negotiator
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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.
CNN: Facing up to terror in the Middle East
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But at the later Taba negotiations, the two sides came within touching-distance.
ECONOMIST: Israel and Palestine
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Late today, Egypt's interior minister said all the bombings were linked to attacks that took place in 2004 at the resorts of Sharm el Sheik and Taba.
NPR: Suicide Bombers Hit International Force in Sinai
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He's in the Sinai, near the city of Taba.
NPR: Suicide Bombers Hit International Force in Sinai
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Yet the accumulated experience of both parties, the extended rounds of negotiations, and the previous understandings, particularly during the Clinton parameters of 2000, and subsequent understandings of Taba and with the previous Israeli government, all contributed in setting the outline of the final settlement.
WHITEHOUSE: Middle East Peace Talks