Backpackers have been going to Dahab on the Sinai for years and although the town has grown now it is still a great place to meet people and really chill out by the sea.
Diver's House is a really friendly pension that is in the southern part of the town which is far quieter than the northern end which is starting to get "touristy". You can get a double room, but many are triples or sleep four people. The acommodation is basic but you're not there to spend time in your room as you can just walk out onto their sun terrace or that of the Jasmine Restaurant (and Pension) which is opposite. Both have stunning views of the Gulf of Acqaba and the staff there will get your drinks and keep the tab going all day without hassling you to buy more or move on. The bedouine cushion seating there makes it very easy to stay all day!
If you do manage to prise yourself from this laid back cafe the diving instructors and guides with Diver's House are well qualified and friendly. You can though just rent a mask, snorkle and some fins cheaply from any of the stalls along the road and snorkle on the coral reef which runs directly infront of the cafe.

www.divershouse.com/home.html
Mashraba Street - Dahab - South Sinai
+20 69 3640885
Google map: tinyurl.com/2wbo993

www.jasminepension.com/
Mashraba St.- Dahab - South Sinai- Egypt
+20 69 3640 852
From Sharm El Sheik or Cairo there is an East Delta Bus Service that runs regularly during the day and overnight (Cairo to Dahab is 50LE per person).

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