Egyptian tour operators were reeling yesterday from the blow dealt to their lucrative industry. "We haven't had any cancellations yet from our foreign clients, but the image for the long run is really bleak," Mr Jihan Salah at Seti First travel agency said.
Egypt earns more than $3 billion (£2bn) a year from tourism, making it one of the country's top foreign currency spinners.
"It's a tragedy," said an official at the Luxor Tourist Information Centre. "Around two million people a year visit Luxor alone. We hope that such a terrorist act won't affect tourism over here."
In London, Egyptian Tourist Minister, Mr Mamdouh elBeltagi, told reporters at a travel fair he felt "shock and sorrow" and "extremely sad for this accident and this cowards' crime committed against our guests and Egyptians as well".
He added: "I can't predict at this stage what is going to happen about tourism to the country, but our government is doing all it can to ensure travellers' safety."
The shooting occurred as the winter tourism season builds to its new year peak. The industry had appeared to shrug off the last attack on foreigners when two brothers shot and petrol-bombed a bus outside the Egyptian Museum in Cairo on September 18th, killing nine Germans and an Egyptian driver.
"Tourism will face big problems this time," said Mr Amani El Torgoman, of Travco travel agency. "The attack was so violent and in one of Egypt's most attractive places. It's terrible."
After the Luxor killing, the US embassy warned its nationals not to travel to southern Egypt "until the security situation is clarified and further notice is provided".
Hundreds of Britons on holiday in Egypt were given the chance to return home following the attack. British tour operators were also considering whether to cease tours to Egypt. Holiday company Thomas Cook said: "Anyone out in Egypt who wants to leave will be flown home early and anyone due to travel out can get their money back or transfer to another destination if they wish."
Airtours, which also has clients in the Luxor area, said it was closely monitoring the situation - as was another British tour operator, First Choice, which also has people in Egypt. Both companies are due to fly more UK tourists to Egypt on Friday.
The Nordic region's main travel agent for Egypt said yesterday it had cancelled trips to that country for the foreseeable future and was bringing home all customers currently on holiday there.
Fritidsresor, which arranges most of the charter trips to Egypt from Sweden, Norway, Denmark and Finland, said it acted quickly after yesterday morning's killings. "We are moving all our guests at Luxor to Hurghada, south of Luxor, and flying them all home on Thursday, some a week early."
Fritidsresor currently has about 1,000 people on holiday in Egypt. Annually the travel agency takes about 15,000 people there. The agency said it was trying to find alternative travel for people who had booked trips to Egypt in the coming weeks. "We are not sure what is happening there and as long as there is any uncertainty we will not be taking our guests there," the spokeswoman added.
The second-largest Czech travel company, Fischer, also cancelled all trips to Egypt. Fischer handles around 200,000 trips a year.