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To tip, or not to tip? That is always a difficult holiday question. With cultures varying so widely around the world, it can be difficult to know what's expected from you. In Egypt, there is little ambiguity. Whilst tipping isn't compulsory, it will definitely be appreciated - and you will get better service in the long run if you do tip. As flights to Sharm el Sheik are very affordable, you may well want to visit the country more than once, so increasing your popularity with a few tips here and there can only be a good thing.
Remember that places like Sharm are relatively small, so you may come across many of the same people again. If you tip a taxi driver well the first time, he will often give you a better price the second time, in anticipation of another good tip.
At your hotel, it's a bit too much to tip every day of your stay. To show appreciation, you can tip when you first arrive and again when you leave. If someone carries your bags to your room for you, a tip of 2 or 3 pounds is appropriately generous. If you're eating in the hotel restaurant every day (even if it's only for the breakfast), a nice tip to your waiter on your first visit should help you receive great service every time. If this is the case, be sure to show your appreciation when you leave by giving another generous tip. Tourists who don't feel comfortable if they don't tip after each encounter should alter the amount accordingly. For example, a 50p tip after every meal will add up to a generous supplement to the local wages. Similarly, don't forget to tip other support staff that you encounter, like the masseuse or beach bar attendants. A small donation the reception staff when you're checking out of your hotel is always appreciated, as they often get left out.
There are other ways to tip too. At the end of your stay, it's nice to leave a couple of pounds on the side for the chambermaids, but you may have other goodies that they would value as well. For example, Western magazines are often appreciated. When you've finished with your Marie Claire or Heat, don't just throw it away. Leave it out for the staff to read and share! Unused toiletries are another great leave-behind. Western products are more expensive to buy in Egypt than at home, especially on local wages. Gifts like that can be a real treat to locals - as well as lightening your luggage.