Maher Kanawati

Hundreds of people gathered in Manger Square in Bethlehem near the site where Christians believe Jesus was born.

A prayer was read and cheers broke out as people stood around the giant Christmas tree.

Bethlehem Mayor Maher Kanawati spoke.

We will raise our voices with a message of peace that comes from the pain we experience, he said.

Since the war in Gaza broke out, the Israeli military has ramped up its operations in the West Bank and restricted movement.

contributing to a fall in tourism in Bethlehem.

According to the local government, unemployment rose from 14% to 65%.

Today, there is cautious hope that the new year will bring peace.

Hadil Al-Shalchi, NPR News, Tel Aviv.