Wide-ranging plans to redevelop Luxor, 15km (10 miles) away, have stirred up a debate about putting tourists' interests before those of locals.
Thousands of visitors come to see the site of the ancient capital, Thebes, each day and the authorities want to add to their holiday experience.
"The big vision is to change the city into the largest open-air museum in the world," says governor Samir Farag.
Work is under way to restore the ancient avenue between Luxor and Karnak temples, which is lined with more than 1,300 sphinx statues.
Read more: BBC