Cairo: Three Arab-Israeli tourists and four Egyptian workers were wounded Friday in a hotel fight in the Egyptian seaside town of Taba, state-linked media reported.

One of the workers sustained "serious injuries" and was being treated at the local hospital, along with three Arab-Israeli tourists, a security source told Al Qahera News.

Friday's fight broke out between hotel staff and the tourists "who attempted to obtain services from the hotel without charge", the channel reported.

Al Qahera News, which is linked to state intelligence, reported security authorities were investigating the incident.

A high-level security source denied Israeli media reports describing the altercation as a "stabbing operation".

The incident occurred in the Egyptian town of Taba in South Sinai, which is on the border with Israel and a popular tourist destination for Israelis.