The occupancy rate at some hotels in Hurghada, Gouna and Sahl Hashish have reached 100 percent.
The hotels are expected to remain fully booked until Eid al-Fitr at the end of July, since a large number of Egyptians who return to Egypt in the summer spend their vacations there.
Red Sea Governor Ahmed Abdullah said hotels in Hurghada will not be enough for inbound tourists over the coming years, after an increase in demand by Europeans, Russians and Arabs.
On Wednesday, Abdullah said there are plans to increase hotel rooms from 270,000 to 400,000.
Hurghada International Airport receives between 10,000-13,000 tourists from Russia and Europe.
In South Sinai, hotel occupancy reached 61 percent in Sharm al-Sheikh.
Salem Saleh, head of the tourism promotion department in the governorate, said that 24 percent of tourists are Egyptians and that local tourism will be higher during Eid.
Edited translation from Al-Masry Al-Youm