Dahab's claim to fame as a diving destination is the Blue Hole - about 10 mins north of the resort. Awesome diving and water quality is plenty good. Watch out though - it is very deep and very dangerous!

We just came back from two weeks in Dahab. It is less developed than Sharm and with fewer of the "Brits on holiday" element. The dive sites are not on the scale of Ras Mohammed, but some are really lovely. Bells to Blue Hole has been mentioned - fantastic site - lots of healthy coral despite a lot of snorkeller fish. Also, Islands, Eel Garden, Canyon, Three Pools, Umm Sidd, Abu Helal all lovely sites within around 15-20 minutes of Dahab.

We are relatively inexperienced divers, but we had a great break. We stayed at the Iberotel Dahabeya, but dived with Fantasea Red Sea. The hotel was lovely but a fair bit out of Dahab town. The Dive Centre had a hotel attached, the Coral Coast. We had a look around the hotel and ate in the cafe most days. Would definately think about staying there next time...