Dahab is built around the water, and most visitors spend their days diving, snorkeling, or windsurfing. The house reef at Lighthouse is good enough that you can snorkel straight off the shore, and dive centers line the promenade offering courses from beginner to technical. The Blue Hole and its infamous arch draw experienced divers from around the world.
Beyond the sea, the Sinai desert is wide open for exploration. Camel treks into the colored canyons, jeep safaris to remote wadis, and rock climbing in the interior mountains are all available through local Bedouin guides. The wind picks up reliably most afternoons, making the Lagoon area one of the best windsurfing and kitesurfing spots in the Middle East.