In palpable contrast to the sparse crowds attracted in recent years, Christian pilgrims from around the world arrived this year to celebrate Christmas in the Church of the Nativity in Bethlehem, where, according to Christian tradition, Jesus was born. For the first time in years, hotels are at full occupancy and Bethlehem residents were in store for an especially happy holiday. It appears that the boost in tourism - which had plummeted due to the second intifada and clashes between various Palestinian factions - was largely a result of the renewal of peace talks last month at the Annapolis summit.

Israel established a special passage into Bethlehem for Christian pilgrims both before and during the Christmas holiday. Israeli tourism officials stated that some 22,000 visitors crossed from Jerusalem into neighboring Bethlehem on Christmas day, an increase of about 50 percent over last year. Among these were 700 Palestinian Christians from Gaza, who were granted special permission to attend the ceremony.

On Sunday (December 23, 2007) Prime Minister Ehud Olmert hosted at his Jerusalem residence Israeli Christian, Muslim and Druze community leaders in honor of the various holidays and the New Year. The Prime Minister said: "This is the first time that dignitaries from the entire non-Jewish sector have been guests in this house. This is a very important meeting for me and for the entire Israeli government, which is making an effort so that each of you will feel that you are an inseparable part of the State of Israel.  There is no more appropriate opportunity to give expression to this feeling than now, a short time after Hanukkah and Eid al-Adha and just before Christmas. I wish everyone a joyous holiday season and a happy New Year."