An ambitions strategic plan for tourism development in the Red Sea region is currently implemented. Without adequate concern for environmental protection this development could cause ecological threats. Problems resulted from conventional tourism corroborate the need for a culturally and environmentally responsible alternative, namely ecotourism. Consequently, ecologically sensitive facilities are in high demand that can be met with ecolodges. This paper reports on a collaborative process for developing an ecolodge demonstration project. The process was initiated and tested involving a number of experts and encompassing participatory mechanisms, site analyses, and interviews. The results of this process were incorporated into a final planning alternative that is envisioned as a tool that guides the professional community in Egypt toward the development of sustainable tourism facilities in the region.