Nueiba - Tarabin
Tarabin (formarly Nueiba) is a small town situated about 1.5 hours from the Israeli border. The town is much smaller than Dahab, and gives a more laid back experience.
Most of the tourists in Tarabin are not Scuba divers, but are rather people looking for a relaxing stay out on the beach. Since Tarabin is a rather small place, there are not many hotels there, although it does have some hotels at affordable prices.
Most Israelis who travel to Tarabin stay at the local "Hushot", which are straw huts with mattraces on the floor. The Advantages are that you can literaly sleep at a distance of 20 feet from the red sea water line, and the price per night is extremely low (about 5-10$ a night), but keep in mind that those "Hooshas" are not air-conditioned, and the showers and toilets are public.
Once in Tarabin, you will usually just sink into the doing-nothing atmosphere, and just hang around and enjoy the beautiful view and weather. In case you are the adventurous type - I would recommend a day trip to any of the local attractions in which you will be accompanied by one of the locals for a short hiking trip along with a desert "bewian style" picnic.