The account, which has been handled by Lowe for 11 years, was put up for review in April, coinciding with preparations for a renewed drive to reassure tourists that Egypt was a safe destination.
Officials in Egypt say as many as 88 people may have died after a series of bombs in the resort in the early hours of Sunday morning. At least one Briton has been confirmed dead, with many others critically injured.
Lowe was due to pitch at the tourist office's headquarters in Cairo in the next few weeks against JWT, BBDO, DDB, Euro RSCG and Publicis. However, insiders predict it will take months for a strategy to be developed to encourage tourists back.
Tourism in Egypt has already been hit a spate of terrorist attacks. Last November a bomb at the Red Sea resort of Taba killed 31 people.
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