Bethlehem Lights Christmas Tree for First Time Since 2022 as Residents Hope to Revive Economy

Bethlehem Sees Moment of Hope Amid Economic Strain

After more than two years of cancelled public festivities and severe restrictions related to the wider conflict in the region, Bethlehem’s Manger Square filled again on Saturday as crowds gathered outside the Church of the Nativity to watch the city’s Christmas tree lit for the first time since 2022.

Reporters described the atmosphere as a rare, welcome relief. "The lighting of the Christmas tree was really some cheer that everybody needed," said Al Jazeera’s Nour Odeh, reporting from Bethlehem. She said the square was "filled to the brim" with families, dignitaries and visitors from across the occupied West Bank and Palestinian citizens of Israel.

Nour Odeh, Al Jazeera: "I haven't seen the square filled in quite a long time. Families were here, dignitaries, people who came from across the occupied West Bank and even Palestinian citizens of Israel."

Traditionally, Bethlehem’s tree-lighting events feature dances, songs and large public celebrations. This year’s two-hour ceremony was more restrained: organizers limited activities to hymns and prayers for peace, reflecting the city’s recent hardships.

Economic Toll and Community Strain

Bethlehem’s symbolic moment came against a backdrop of deep economic distress. Longstanding family businesses have closed, and many residents have relocated abroad to find work and support relatives at home. Local business owner Jack Gaccaman told reporters that families have had to move away "just to keep living and support the others here," noting rising expenses and rent.

Jack Gaccaman, Business Owner: "Members of the family have moved to other countries just to keep living and support the others here. Of course, you can't cover high expenses, high rent."

Hotels near the Nativity Church, including the historic Manger Hotel, have seen very low occupancy for two years. Hotel owner Fares Banak said some businesses are barely surviving on occasional guests. "Otherwise, here, it will be a disaster. When you abandon a car for two years, it will not work again. And this is what we did," he said, describing prolonged inactivity.

Fares Banak, Hotel Owner: "When you abandon a car for two years, it will not work again. And this is what we did."

Official figures from the Bethlehem Chamber of Commerce highlight the scale of the downturn: unemployment is estimated at 34 percent across the occupied West Bank, and more than 40 percent of people are struggling to survive. Tourism — previously a lifeline for Bethlehem — has collapsed, with visitor numbers down about 90 percent compared with two years ago, resulting in an estimated loss of roughly $1.5 million per day during that period, the chamber says.

Looking Ahead

Despite the subdued tone of the ceremony, many in Bethlehem saw the tree lighting as an important public signal. Organizers and residents hope the event will give children some joy and show the world that Bethlehem remains open and ready to receive visitors — a small step toward reviving a strangled local economy.