An elderly Austrian couple and a young Swedish man were hospitalised after the assault yesterday at the Bella Vista hotel in the Red Sea resort of Hurghada.
Egypt's Tourism Minister Hisham Zazou said the assailants appeared to have been acting alone, while the hotel described them as "drugged young men".
Police shot dead one of the knife-wielding attackers and wounded another, saying one of them was also carrying a "sound gun".
"My son and me were eating in the restaurant and having a discussion," he told AFP in the Hurghada hospital.
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The two men rushed into the restaurant "very fast," he said. "They took knives and they tried to get Sammie here," he said, pointing to his chest.
"Then (they) said 'down on the floor' and we do that," he said, adding that he told his son, who was bleeding, not to move.
On its Facebook page, the hotel posted pictures of the two other victims, spelled in hospital records as Renata Weisslen and Wilhem Weislan, both smiling.
"They are ok now," it said in a post. A doctor at the hospital told AFP they were a couple, both 72.
Zazou told AFP that the two attackers were "not part of an organisation".
It was "an individually motivated attack. This is the initial finding," said Zazou, who was in Hurghada to visit the victims, adding that the investigation was still ongoing.