Thousands of Palestinian Christians and Muslims gathered in Bethlehem's Manger Square, in front of the Church of the Nativity at the weekend for the Christmas tree lighting ceremony - the first one in three years.

There were hymns and prayers for peace in the Dec. 6 two hour ceremony, Independent Catholic News reported.

An unyielding economic crisis has lashed Bethlehem and the entire West Bank in recent years.

First, there was the drain on tourists and pilgrims during the COVID-19 pandemic, and then the austere restrictions imposed by Israel more recently forced many established shops and hotels to close.

The city is hoping that the return of the Christmas lights will signal to the world that Bethlehem is making a comeback.

During the Gaza War, ignited on Oct 7, 2023, all public celebrations for Christmas were cancelled in Bethlehem due to restrictions in the occupied West Bank – where Christians believe Jesus was born, BBC reported.

But after the recent ceasefire, the holy city decided that this year the festivities would return as symbolised by the lighting of its traditional, giant Christmas tree in front of the historic Nativity Church.

"It's been a bad two years of silence; no Christmas, no jobs, no work," Bethlehem Mayor Maher Canawati told the BBC. "We're all living here from tourism and tourism was down to zero."

The mayor said that the idea of resuming celebrations could be controversial, as suffering continues in Gaza – including for those in its tiny Christian community, many of whom have relatives in Bethlehem.

"Some may say it's not appropriate, and others say it's appropriate," Canawati said. "But deep inside my heart, I felt that this was the right thing to do because Christmas should never be stopped or cancelled. This is the light of hope for us."

He added: "Some may say it's not appropriate and others say it's appropriate, but deep inside my heart, I felt that this was the right thing to do because Christmas should never be stopped or canceled. This is the light of hope for us."

Beit Jala and Beit Sahour, two neighbouring towns, will also have Christmas tree lightings in the coming days. Hotels are also receiving more bookings from tourists as well as Palestinian citizens of Israel.

Beit Jala and Beit Sahour, two neighboring towns, will also have Christmas tree lightings in the coming days. Hotels are also receiving more bookings from tourists as well as Palestinian citizens of Israel.

Despite the ceasefire in Gaza, acts of war continue in the area.

Father Gabriel Romanelli, the priest at Holy Family Church in Gaza, the only Catholic church in the area, shared on X that on the same day of the Bethlehem tree lighting a bomb went off some 200 meters (650 feet) from his parish. No one was injured.