However, I think a lot of people used to the manners of the West really struggle with Egypt’s (admittedly, exhausting) haggling culture.
There's haggling where you actually enjoy the process (i.e. Turkey, visiting the bazaars, you get to haggle, then you get invited for some cay w/ the vendor, talk a bit, that's really enjoyable) and then there's outright scamming. Friend of mine went to Egypt, really wanted to ride a camel. Agreed on a price, rode the camel, and at the end they wouldn't bring the wooden thingy so that he could dismount, and they were asking for more money. That's not enjoyable at all.
Since camel rides are almost exclusively bought by tourists, it attracts scammers that see the “customers” as easy marks.
The government won’t do anything about it until it starts negatively affecting the money coming into the country via tourism.