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I've only been there on business, but I hear that Sharm El Sheikh on the Red Sea is absolutely beautiful. It's a resort city and caters almost exclusively for tourists. Cairo is very busy and crowded but very enjoyable. It has a very unique vibe about it. Beware the driving though - it is some of the worst in the world.
If you are buying anything there, haggle, haggle and then haggle some more. The best way to approach these negotiations is to tell yourself that you really don't want to buy anything. That way you are not tempted to give in too early. The last time I was in Cairo I wanted to buy a mother-of-pearl and mahogany jewellery box that they were trying to sell to me for $100. After about an hour of tea drinking and cigarette smoking, I eventually walked away with the mother-of-pearl box, two smaller mother-of-pearl boxes and a jade bust of Nefertiti for $30. And I was probably still ripped off.
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