Ecotourism is a form of tourism involving responsible travel to natural areas, conserving the environment, and improving the well-being of the local people, its purpose may be to educate the traveler, to provide funds for ecological conservation, to directly benefit the economic development and political empowerment of local communities, or to foster respect for different cultures. Red Sea area considers one of the richest district in Egypt, contains natural tourist components such and ancient quarries and archaeological mines in Wadi Hammamet and Qusier.As well as Marine Sports, Beach tourism, Medical Tourism, Recreational tourism, Historical Tourism, Religious tourism, Safari tourism and adventures in addition to; nature reserves and beach islands such as; the Jiftun and the Shdawan Islands, area of the Abu Manqar islands rich in mangroves, the area of Dasha al-Dabaa, Safaga Island, Utopia Island, Umm al-Jorasan Island, Al-Zubarjid Island. Red Sea is Known for a very rich tradition of craftsmanship; there are various and different traditional handicrafts such as; leather products, Palm Industries, traditional folklore jewelery industries of silver, Wood Industries, household decorations, Kilim industry, manual industries of plants and natural rocks in the areas of; Halaib and Shalatin, Marsa Alam , Hamada, Abu Ghusoon and Ras Banas, Qusair and Safaga . This paper is discuss the challenges and obstacles facing the exploitation of the natural and human components to develop and develop eco-tourism in the Red Sea region, which helps to increase the national income and support sustainable development in the region. but the development of handicrafts has encountered many problems including the lack of a specific market with adequate stores, lack of managers who deal with message delivery collection of products, and inability to find new markets at home and abroad. Development of handicrafts in the Red Sea area and their reality and perspectives are reflected in the present study. The results revealed that although artisans in the Red Sea area try hard to develop handicrafts but it needs a great support to move forward and compete with other countries..