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In Egypt, resurgence of militant Islamists

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In addition to attacks on the Sinai, there have been at least three smaller terrorist incidents involving tourists in Cairo since 2004. In the 1990s, domestic terror groups targeted tourism in an effort to undermine the country's finances, to devastating effect. The 1997 attack on foreign tourists in Luxor sent Egypt into a deep recession.

Memories of that past are still fresh for some. "It's a disaster," says Mohamed Kabany, owner of Dahab's Inmo Hotel. "It could mean that we won't have business for the next year or two."

Still, many average Egyptians were furious at the attackers, which offers hope, since anger at the Islamic Jihad in the 1990s helped undermine support for that group. "No religion, not Islam or Christianity, accepts killing," says Lamia Farouk, a young mother in Cairo. "The people who did this are deranged."

It was business as usual in Dahab Tuesday despite the bombings, according to sources there. Shops opened, as did restaurants. Hotels reported few early checkouts. Tourists were out enjoying the sun, residents said.

"We are continuing," says Hany Aly, manager of the Neptune Hotel. "Our hotel, diving center, and coffee shop are full.... Life is going back to normal. This is to show those who set off these bombs that we are strong."

Located next to one of the bombing sites, the Neptune Hotel had its windows shattered. New glass has already been ordered, Aly said.

There were also several small antiterror protests in Dahab Tuesday. About 100 people marched through Dahab in remembrance of the blasts' victims on Tuesday.

Many Dahab residents and visitors seemed shocked by the horror of the bombings. "I was sitting on a high balcony and could see everything," says Mr. Nawar. "There was a big fire and the land was shaking like an earthquake. I heard people crying and an Egyptian boy, maybe eight to nine years old, looking for his father. It was terrible."

Nawar, a Christian, says he may take his faith more seriously now: He would have been at the Ghazali market when the blast occurred if a friend hadn't delayed him.

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