The energy demand for air conditioning is quite extensive due to the hot and..The energy demand for air conditioning is quite extensive due to the hot and humid summer climate in Egypt. The rapid increase in non industrial electricity consumption is due to the rural electrification and the presence of many buildings air conditioned in summer using electricity. Deep cold ocean and seawater is a valuable natural resource that can be used for energy production, cooling, desalination, aquaculture and agriculture. The most economically viable use of this deep water is to air-condition buildings through a Sea Water Air Conditioning (SWAC) system. This study reports the results of a technical and economical assessment of the potential for using (SWAC) other than conventional vapor compression systems to air condition hotels at a new tourists resort called Sahl-Hasheesh ,18km south of Hurghada, Egypt. This study analyzed and sized the major components of the Sea Water Air Conditioning (SWAC) system, determined the operational performance, and estimated the probable costs. The economic analysis was based on two different methods, the simple pay back and the net present value (NPV) method. The results showed that the SWAC system is the preferred option for its short payback period as well as the minimum net present value when being applied at Sahl-Hasheesh area. Large energy savings approaching 80% compared to conventional. This is in addition to the low greenhouse gas emissions.