Tour operators are cancelling trips to Egypt's biggest cities and more foreign ministries are recommending travellers avoid busier parts of the country.
The UK foreign and commonwealth office has issued a travel advisory warning against "all but essential travel to Cairo, Alexandria, Luxor and Suez".
"Business has been affected," said Christophe Landais, the managing director of Accor Middle East, which has 16 hotels in Egypt including some under the Sofitel and Novotel brands in Cairo.
The company said it was planning to evacuate 18 family members of expatriates it employed in the region, although the hotels' top managers were expected to continue working.
Discover Egypt, a UK travel agency, said it had cancelled tours for this week. The company has not evacuated tourists but clients scheduled for Cairo have been re-routed to Luxor or the Red Sea.
"People are seeing a major impact in big cities," said Konstanze Auernheimer, the director of marketing and analysis at the hotel research company STR Global.
"There's no report of anything going wrong [in smaller cities with resorts]. They should be fine."
The revenue generated by tourism has steadily increased in recent years throughout Egypt, growing from US$9.3 billion (Dh34.15bn) in 2007 to more than $12.8bn last year, according to Euromonitor International, a market researcher.
"Egypt is out of the game now until at least [the] summer season," said Mona Faraj, the managing partner at Insights Management Consultancy, based in Abu Dhabi.
But Ms Faraj said she believed the impact would be short-term.
"Our region is known for bouncing back faster than any other region, post-political turmoil," she said.
"No doubt spring holidays and mid-year school breaks will be either in UAE or towards Europe and Far East, and lesser for Levant and, of course, Egypt."
* with reporting by Kevin Brass