For the past two Christmases, most businesses in the birthplace of Jesus in the Israeli-occupied West Bank were shuttered and eerily empty.
But on Saturday evening, crowds watched a Christmas tree-lighting ceremony in Manger Square and restaurants bustled with families and - a hopeful change in the Palestinian city that's been reeling since war broke out in Gaza.
"It's not like it was before the war," 30-year-old restaurant owner John Juka said.
"But it's like life is coming back again."
Tourism and religious pilgrims have long been a prime economic engine for Bethlehem.
Around 80 per cent of the Muslim-majority city's residents live off it, according to the local government.
Those earnings ripple out to communities across the West Bank, a territory long marked by economic precarity.
"When we have 10,000 visitors and pilgrims sleeping in Bethlehem, that means the butcher is working, the supermarket is working and everybody is working," said city mayor Maher Nicola Canawati.
"There's a ripple effect."
That economic lifeline vanished when war broke out in Gaza following the Hamas-led October 7, 2023 attack on southern Israel.
Bethlehem's authorities cancelled major Christmas celebrations during Israel's retaliatory offensive in Gaza, whose health ministry has reported more than 70,000 Palestinians killed.
At the same time, Israel's military scaled up operations in the West Bank, including communities near Bethlehem.
The unemployment rate in the city jumped from 14 per cent to 65 per cent, the mayor said.
Poverty soared, and about 4000 people left in search of work.
A United Nations report last month said the West Bank is going through its most severe economic downturn on record, citing the ongoing Israeli military operations.
Now Bethlehem residents seek a comeback.
"The decision we took was to reignite the spirit of Christmas and to reignite hope," the mayor said.
"I think this sends a great message to the whole world that we Palestinians love life and we are eagerly looking forward to a peaceful solution."
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