Another report, however, said that the body had signs of violence on it. It was taken to a hospital in Nuweiba.
The Israeli Embassy in Cairo is handling the matter, and Egyptian authorities have launched an investigation into the incident.
The Tarabin area is located along the shoreline, only a few dozen kilometers of Eilat. The area is known to be one of Israeli's favored vacation sites.
Last week, the Counter Terrorism Bureau issued its bi-annual travel advisory regarding imminent threats on Israelis the world over.
Security officials emphasized that these warnings are not new but have decided to reiterate the specific dangers apparent in the Sinai Peninsula and pertaining to kidnappings in general.
Roee Nahmias contributed to this report