The survivors were brought to safety in the nearby diving resort of Marsa Shagra, about 21km (13 miles) north of the town of Marsa Alam, along with 12 Egyptian crew and guides, according to a statement from the Red Sea State governor's office and two security sources.
The fire was caused by an electrical short circuit on the boat, which was named Hurricane and had been on a trip since June 6 in an area just north of Marsa Alam, the statement said, Reuters reported.
Images posted on social media showed a white motor yacht with the same name on fire at sea, with thick smoke billowing into the sky.
"We saw smoke from the boat, it was around 9km from the beach," said Ahmed Maher, a diving manager at Marsa Shagra village. "A nearby boat rescued them and dropped them off."
Britain's Foreign Office said it was in contact with local authorities about the incident and supporting nationals involved
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