Agriculture

Thousands of dunam of Palestinian agricultural lands have been confiscated in the Bethlehem district, due to Israel’s construction of the Separation Wall, bypass roads and the annexation of land to adjacent illegal Israeli settlements. In these ways, Palestinian agriculture—one of the most important potential economic activities of the area, particularly given the favourable climate—is undermined by the occupation and its impacts.

The total cultivated area of the Bethlehem district amounts to 68,828 dunam (2005).

In 2004/2005, the net value of agricultural production, including livestock activity, amount to US$38 million. The primary products are derivates of olive trees that function as raw material for local manufacturing (wood handicrafts, olive oil).

 
Number of livestock in Bethlehem District, 2004-2005

Livestock	Heads of cattle
Sheeps	66,694
Goats	53,273
Beehives	2,326
Poultry	876.000

Source: Palestinian Central Bureau of Statistics (PCBS)

Types of cultivations in Bethlehem District, 2004-2005

Cultivation	Dunams
Fruit Trees	47,269
Vegetables	2,463
Field Crops	19,096
Total	68,828

Source: PCBS

 

Industry

According to the World Bank[1], Palestinian factories in the West Bank produce more than 50 percent below their productive capacity. In the Bethlehem District, factories are primarily small family businesses.

Businesspeople in the Bethlehem area constantly face the risk of destruction of their properties and fixed capital due to ongoing Israeli military operations in the Occupied Palestinian Territories. From 2000 to 2002, six factories in the Bethlehem District were severely damaged during Israeli military incursions.[2] This economic environment further entails a low profit and high risk investment for international companies.

Olive wood Carving - For historical and religious reasons, olive wood carvings comprise an economic activity particular to the Bethlehem District, especially the Beit Sahour area. The carving of olive wood is generally connected to the Palestinian carvers’ ancestry and heritage, as well as a means to earn vital income that helps pay for food, education, health care and housing.

The olive wood handicrafts produced in Bethlehem are also part of the fair trade international commercial circuit.

 Olive presses - In the Bethlehem region, there are six active olive presses that in 2006 pressed 2,918 tons of olives and extracted about 700 million litres of oil.
 

Labour
 
67.5 percent of the Palestinian population of working age (15-65 years) in the Bethlehem District is part of the capital labour force, whereas the majority of the 32.5 percent outside of it work in housekeeping (52.5 percent).

Of the actual capital labour force, 80 percent are employed, 13 percent are unemployed and 6.5 percent are underemployed (particularly people under the age of 18).

Of the workers, 51.6 percent are employees, 39.4 percent are self-employed, 5.9 percent are unpaid workers and only 3.1 percent of them are employers.

The main sector of employment is the third sector, especially services (27.1 percent of labour force), followed by construction (25.2 percent) and manufacturing ( 20.5 percent).

 

Labour in Bethlehem District by sector, 2005

Source PCBS

Tourism

 

Tourism in the Bethlehem region could be a driving sector for the whole economy, due to the millenary history of Bethlehem and the religious importance of the city as the birthplace of Jesus Christ. However, it represents just the fourth source of income for the district as a whole.

One of the primary obstacles to the growth of tourism in Bethlehem is ‘prejudice’ and fears about the safety of this area.

The Israeli tour operators often tell the tourists not to come to Bethlehem and even if thousands of pilgrims come during the year to visit the Nativity Church or other Christian holy places such as the Shepherd Field, they are often prevented by their Israeli guides from touring or shopping freely in the city.

After the outbreak of the second Intifada, there was a reduction in the number of guests and the number of guest nights in area hotels.

This reduction caused a loss in tourism income totalling up to US$1.74 million[3] for the entire sector in the West Bank.

In 2000, Bethlehem local authorities, together with international agencies, launched the Bethlehem 2000 Project in order to upgrade infrastructures and improve the level of daily life for residents of the governorate.
 

The main objectives of the Bethlehem 2000 Project included:
- Encouraging millions of tourists and pilgrims to visit Bethlehem and participate in the celebrations of Palestinian people during the year 2000 and afterwards;
- Acquainting world peoples with Bethlehem heritage and its message to humanity.
- Promoting tourist output in Bethlehem.
- Contributing in the economic development of Bethlehem and Palestinian areas in general.

 
Source: Palestinian Central Bureau of Statistics, http://www.pcbs.ps.gov