Sharm is in Egypt and excellent for snorkelling in the Red Sea. The cost of getting to Sharm el Sheikh is probably slightly less than Eilat and eating out is also cheaper, except possibly for alcohol which is readily available but a little expensive. Na'ama Bay, which is the tourist area about 7 miles from Sharm old town, has an excellent beach fronted by fine hotels, and access to the reef, which starts at the north end of the beach, is easy from walkways. Other hotels along the coast have their own reef access; the hotels Coral Bay,  Coral Beach (Tiran) and Tropicana Grand Oasis (see 2003 page) are ones that we have tried, are excellent and about 15 minutes from the airport. There are many others, some on the promontory near Ras Um Sid like the Cleopatra that do not have their own beach but with good public beaches nearby where a day's parasol and sunbed hire costs about 10 Egyptian pounds. Taxis are cheap and almost exclusively totally clapped-out locally-built Peugeot estates. Bargaining is mandatory, (before you get in!), and if you find that very uncomfortable Egypt is probably not for you. I put up with it only for the sea. The water is somewhat clearer than at Eilat, which with nearby Aqaba is a busy shipping area. Sharm also offers snorkelling and diving trips to nearby Tiran island with several excellent reefs and a lagoon, and the Ras Mohammed nature park which is stunning. We have stayed at the Sonesta Club which with the Sonesta Beach have their own area of beach with free sunbeds etc. right on the edge of the reef. The sea is relatively shallow and protected in Na'ama bay, and is therefore more suitable for novice snorkellers than the deep-water access at hotels outside the bay, but it does get crowded and the coral is suffering damage. There isn't much in the way of frenzied nightlife but Na'ama bay is all within walking distance with the bazaar and restaurants. The local merchants can be bothersome, I'm afraid, but you can get used to it. You can get visas at the airport for about £15 on the way in, which can be necessary if you intend leaving the local area, so I'd recommend getting one unless you definitely intend staying around the hotel pool, at least for your first visit. In general the coral and associated sea life is more preserved than Eilat, but don't let that put you off Eilat. If you haven't tried the Red Sea, either is a revelation.

Here are some pictures taken around Sharm.

If only I'd taken my camera when I swam alongside a passing manta ray!