Verdi's opera, which is set in Eygpt, has been performed in Luxor and by the pyramids in Giza several times since the 1980s. But fears of terrorism and other problems have foiled attempts to make the performances into an annual event.

Kamal said, in his statement, that Loreley Klassik, the German company organizing the event, had failed to make a half-million euro payment, and had not abided by its contract with the opera house.

Relations between the two companies were reported to be smooth as recently as last weekend, when Egyptian and German representatives from Lorely Klassik met with Kamal.

Loreley Klassik could not be reached for comment. No one seems to know the source of the rupture, except for some speculation that there was some tension between Kamal and Samir Farag, the previous director of the opera house. The contract with Loreley Klassik was made under Farag's supervision.

Farag is currently the governor of Luxor.

The cancellation will result in a loss of 1 million euros in tourism income, according to a source inside Lorely Klassik. The source, who said of the abrupt cancellation, "we are stunned," also said that half of the 40,000 available tickets for the opera have already been sold.

Luxor's city council is looking into scheduling the event at another opera house. Performances of AÇda in Cairo, also organized by Loreley Klassik, are apparently not affected by the situation in Luxor.