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I worked in Egypt a few summers back teaching SCUBA lessons and doing marine research in the Sinai Peninsula in a town called Dahab, and in addition I travelled around the country. I loved the whole Sinai (minus Sharm al-Sheikh which seemed like a giant tourist trap) and would highly recommend it. If you SCUBA dive then the whole area is great. There's a lot to see and do in Cairo and could take weeks to get through (go see Old Cairo and the huge market there). If you do end up in Luxor then see the Valley of the Kings, because it was awesome to see the tombs of so many people you read about growing up. As far as safety goes, I felt pretty safe the entire time; minus when they were holding an anti-Bush protest that I stumbled upon.....and then got away from. Have a great time if you go.
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