Muerz,

Diving and snorkelling is the best/most interesting thing to do, but the camel trek into the desert at evening, followed by dinner under the stars is also quite good (just have to keep saying 'no' to the children trying to sell you things).

Only one restaurant stands out from a visit last year, which was in 'downtown' Na'ama Bay - don't remember the name, but I think that it's the only one on a rooftop - local cuisine, so lots of grilled meat, etc, and extremely good bread, made continuously by a man in the corner. Enjoy.