Several obscure Islamist groups have claimed credit for Thursday's suicide attacks.
Last week's deadly suicide attacks on two resorts along Egypt's Aqaba coast have drawn Cairo into a circle of US allies - including Turkey, Spain, and Saudi Arabia - struck by terrorists in recent months.
It could be weeks before a credible picture emerges of who conducted the attacks, but the violence has already left Egypt's image - of a country that had combined deal-making with tough security measures to quash domestic terrorism - in tatters.
Israeli officials blamed a group aligned with Al Qaeda, though Egyptian officials say they are leaving all options open.
But the strike came just a week after Al Qaeda's No. 2 figure Ayman al-Zawahiri, an Egyptian national, urged global jihadis in an Internet statement to redouble their efforts to strike out at Israel, the US, and their allies in retaliation for the latest violence in the Gaza Strip.
Most of the damage was done at around 10 p.m. at the Hilton in Taba, a stone's throw from the Israeli border. A 400-pound car bomb took off the front of the 10-story hotel. Two smaller bombs at a nearby campground in Ras Shitan an hour later killed about five people. Israel said many of the 34 dead were its nationals. Russia also said 12 Russians were still missing after the attack.
Egypt suffered through seven terrorist attacks on tourists in the 1990s, culminating in the 1997 Luxor attack that left 58 dead and greatly damaged Egypt's tourist industry. Last week's attack was the first inside Egypt since then.
Taba was the last piece of Egypt returned by Israel in the settlement of the 1967 war between the two countries. The deal had been made by President Anwar Sadat, who was assassinated by Islamists in 1981 for having made peace with Israel. The Hilton was built by an Israeli businessman, and the historic ties and proximity to home have long made it popular with Israeli tourists.
If the attack is shown to have been carried out by Islamists, as seems likely, experts said it was probably done by a small group that has forged new alliances in recent years. Egypt's main Islamist terror group, the Jemaah Islamiyah, which was behind the Luxor attack, declared a cease-fire with the government in 1999. Most experts say it no longer has the capability to mount such attacks.