I heard about this in conversation earlier this evening so thought I would do some checking. English language Arabic press are reporting the same thing.
An example from Ahram online, which I have generally come to enjoy reading.
This is for sure a move intended to prevent foreigners from entering the country in order so seek employment - and this would include the dive staff, of course. On general principles, that's fair enough - when I worked in Thailand I had to fly back to the UK to apply for my business visa, which can only be done in the country of origin, in order to apply for a work permit.
"Tourists in groups" may be a concession to package holiday tourists - for example, Thompson Holidays flies a plane-load of people to Sharm which constitutes a "group", and they'll mostly be doing stuff organised by the hotel, most of them won't stray very far from Sharm (or Hurghada, or wherever), and if they do it will be on trips organised by the hotels who will arrange all the visas and ensure the "guests" have very little freedom of choice in what's offered, but then most of the tourists in Sharm don't need that. They book a package holiday and tick some boxes along the way - visited pyramids, check, rode camel, check, got drunk and vomited on the dance floor, check, sat on the toilet for 2 days with "Pharaoh's Revenge", check, and so on and so forth - and this forms the bulk of what tourism has become these days.
This is only my own interpretation of what the "group travel" thing means, but given that this sort of package holiday forms the bulk of the tourist industry in Egypt, I can't imagine that the military council would simply abandon the income the country makes from this. I would be willing to bet that various members of the council have vested interests in the continued supply of tourists to their various business enterprises. The former government may well have been corrupt (allegedly), but a lot of people also got rich quite legitimately (allegedly), including some of the senior figures in the military (allegedly).
The Labour department officials visited a number of dive centres last week, checking passports and work permits, but I've not heard of their being any repercussions over this. Until recently, renewing visas and work permits has been pretty easy, although no new work permits are being issued at the moment. They are renewable and transferable - if one staff member leaves a replacement could have that work permit transferred to them, but you can't get a new one.
I don't begrudge the right of any country to ensure it's foreign visitors are working legitimately, but it doesn't have to be such a pain in the butt, and I don't think they'll insist on pre-approved visas for package tourists.
My 2 piasters.
C.