Immediately opposite, across the River Nile, lie the monuments, temples and tombs of the West Bank Necropolis, which includes the Valley of the Kings and Valley of the Queens. Thousands of tourists from all around the world arrive annually to visit these monuments, contributing greatly to the economy of the modern city. The importance of the city started as early as the 11th Dynasty, when the town grew into a thriving city, renowned for its high social status and luxury, but also as a center for wisdom, art, religious and political supremacy. Montuhotep II who united Egypt after the troubles of the first intermediate period brought stability to the lands as the city grew in stature. The Pharaohs of the New Kingdom in their expeditions to Kush, in today’s northern Sudan, and to the lands of Canaan, Phoenicia and Syria saw the city accumulate great wealth and rose to prominence, even on a world scale.Thebes played a major role in expelling the invading forces of the Hyksos from Upper Egypt, and from the time of the 18th Dynasty through to the 20th Dynasty, the city had risen as the major political, religious and military capital of Ancient Egypt.

A controversial tourism development plan aims to transform Luxor into a vast open-air museum. The master plan envisions new roads, five-star hotels, glitzy shops, and an IMAX theatre. The main attraction is an 11 million dollar project to unearth and restore the 2.7 kilometres (1.7 mi) long Avenue of Sphinxes that once linked Luxor and Karnak temples. The ancient processional road was built by the pharaoh Amenhotep III and took its final form under Nectanebo I in 400 BCE. Over a thousand sphinx statues lined the road now being excavated which was covered by silt, homes, mosques and churches. Excavation started around 2004.   The economy of Luxor, like that of many other Egyptian cities, is heavily dependent upon tourism. Large numbers of people also work in agriculture, particularly sugarcane.  To make up for shortfalls of income, many cultivate their own food. Goat’s cheese, pigeons, subsidized and home-baked bread and homegrown tomatoes are commonplace among the majority of its residents.

A bridge was opened in 1998, a few kilometres upstream of the main town of Luxor, allowing ready land access from the east bank to the west bank. Traditionally, however, river crossings have been the domain of several ferry services. The city of Luxor on the east bank has several bus routes used mainly by locals. Tourists often rely on horse carriages, called “calèches,” for transport or tours around the city. Taxis are plentiful, and reasonably priced,
For domestic travel along the route of the Nile, a rail service operates several times a day. A morning train and sleeping train can be taken from the railway station situated around 400 metres (440 yd) from Luxor Temple. The line runs between several major destinations, including Cairo to the north and Aswan to the south.