Bethlehem Artisans Struggle as Conflict and US Tariffs Take Toll on Tourism and Exports

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Bethlehem, a city revered as the birthplace of Jesus and a popular pilgrimage site, is facing a dire situation this Easter. The war in Gaza, which has been ongoing since October 2023, has caused a sharp decline in tourism, significantly impacting local businesses. The once-bustling streets of Bethlehem, filled with pilgrims and tourists, now remain eerily quiet. The city’s artisans, who rely heavily on tourism for their livelihoods, have been particularly hard-hit.

Tourism Crisis in Bethlehem

Tourism is essential to Bethlehem’s economy, accounting for 70 percent of the city’s annual income, especially during peak seasons like Easter and Christmas. However, due to the ongoing conflict and the resulting decline in international visitors, Bethlehem’s tourism industry has been severely affected. According to Anton Salman, the city’s mayor, the situation has worsened over the past two years, leaving many businesses struggling to survive.

For Attalah Zacharia, a veteran olive wood carver, the decline in tourism has led to a 75 percent decline in sales. His family-run workshop, which has been operating since 1960, has been forced to cut its workforce from 25 employees to just 10. Zacharia now only opens his store two days a week, relying heavily on exports to Europe and the United States. Unfortunately, US tariffs on Palestinian exports have added to the economic strain, threatening to further reduce his income.

Impact of US Tariffs on Exports

The recent US tariff increase is a critical concern for Bethlehem’s artisans, many of whom rely on exports to sustain their businesses. As exports from Palestine are often routed through Israel, the imposition of a 17 percent tariff on their products could make it impossible for many businesses to remain profitable. Zacharia’s workshop, where rows of intricately carved crucifixes and nativity figurines lie unsold, exemplifies the hardship caused by the tariffs and lack of visitors. The uncertainty surrounding the tariffs only compounds the already difficult situation caused by the Gaza conflict.

Bassem Giacaman, another artisan whose shop overlooks Manger Square, has also been affected by the tariffs. Despite a temporary 90-day reprieve on the tariffs, Giacaman worries that the impact of the taxes could be devastating for his business, leading to price increases and potential loss of clients. He highlights how this economic strain has led to canceled orders, further diminishing sales for Palestinian artisans.

Economic Fallout from the Gaza Conflict

In addition to the decline in tourism and exports, the Palestinian economy has been hit hard by the Israel-Gaza conflict. The World Bank has reported that the economy contracted by 25 percent last year, largely due to the closure of markets and restrictions on movement. Israel’s ban on Palestinian workers from the West Bank also exacerbates the situation, making it even harder for families to make ends meet.

Despite these challenges, Bethlehem’s artisans continue to create unique, handcrafted goods, hoping that global attention will turn toward supporting Palestinian businesses. The future remains uncertain, but for many artisans in Bethlehem, this Easter season represents yet another struggle in the face of compounded crises.