Bethlehem Resumes Public Christmas Celebrations, Signaling Economic Recovery After Two-Year Hiatus
Bethlehem, Wednesday, 24 December 2025.
Public celebrations returned to Manger Square today, drawing thousands and revitalizing a tourism-dependent economy where unemployment reached 70% during the two-year wartime suspension.
A Symbolic Return to Manger Square
On Wednesday, December 24, 2025, the atmosphere in Bethlehem shifted from the somber tones of the previous two years to a cautious celebration as thousands of residents and pilgrims gathered in Manger Square for the annual Christmas Eve tree lighting ceremony [1]. This event marks the first public Christmas celebration in the city since the onset of the war in Gaza in 2023, which had forced church leaders to cancel festivities in both 2023 and 2024 [1]. The return of the iconic Christmas tree, replacing the wartime nativity scene that characterized the square during the conflict, serves as a visual testament to the city’s endurance [2]. While the crowds have returned, the gathering is more than a holiday tradition; it represents a critical stress test for a local economy that has been effectively dormant for twenty-four months [1].
The High Cost of Conflict
The economic ramifications of the two-year tourism hiatus have been devastating for the West Bank city, where the financial ecosystem relies heavily on the influx of international pilgrims. Bethlehem Mayor Maher Canawati highlighted the severity of the downturn, noting that the city lives on the revenue generated by hotels, restaurants, and souvenir production, all of which faced a “complete halt” during the war [1]. The labor market data paints a stark picture of this collapse. Prior to the conflict, unemployment in Bethlehem stood at 14%, but recent figures indicate a surge to 65% [2], representing a staggering increase of 364.286% in the unemployment rate. Other estimates suggest the rate may have climbed as high as 70% due to the prolonged absence of visitors [1].
Religious Leadership and Fragile Peace
The resumption of festivities follows a fragile cease-fire brokered by the Trump administration, which local officials hope will sustain the renewed flow of pilgrims [1][4]. Religious leaders have been pivotal in navigating this transition from mourning to celebration. Cardinal Pierbattista Pizzaballa, the Latin Patriarch of Jerusalem, led the traditional procession from Jerusalem to Bethlehem on Wednesday, declaring that after “two years of darkness, we need light” [1]. Just days prior, on Sunday, December 21, 2025, Pizzaballa held a pre-Christmas mass in Gaza, underscoring the spiritual connection between the separated territories [2]. Meanwhile, at the Vatican, Pope Leo XIV prepared to preside over his first Midnight Mass, emphasizing the wisdom of the Christmas story amidst the suffering of the poor [2].