I agree I think that tipping in small Egyptian notes is the best bet, some people seem to give 50p's & £1 coins but this causes staff grief as they then have to find people who are prepared to change these into £5, £10 or £20 notes and some tourists just dont want to go home clanking of £1 coins, so aren't helpful in this. Although a £10 or £20 for room cleaning seems to be acceptable as they can change these in their banks/exchanges.
We heard the same thing as Val did from her hotels General Manager, re the problems caused by overtipping. Apparently it can have a detremental effect on the countrys general economy i.e. taxi drivers, earning more than Doctors who have to train for 7 years, where is the incentive to train to become a Dr ? blah, blah etc etc.
My info relates to Sharm but I assume tipping is similar in Taba.
Have a great holiday.