Economic Challenges

Jericho Resort Hotel

The economy in the Palestinian Territories is generally in bad shape.

In Bethlehem the only industry/craft which seems busy is the wood carving shops. They make olive wood sculptures of Jesus, crosses and other Christian symbols. These small wood carving shops are busy from sunrise to dark but most carvings are for export.

Otherwise the tourist industry in Bethlehem is in dire straits. Many shops have shut down. Hotels are near empty or closed. Tourist buses sometimes come for a few hours to visit the Church of Nativity, then return to Jerusalem to avoid spending the night in 'dangerous' Bethlehem.

My first night in East Jerusalem I chatted with an American tourist at a coffee shop. She was on a trip to Israel with her Baptist congregation from Dallas Texas. She explained that they would not be visiting Bethlehem or the Occupied Territories because it is 'too dangerous' according to their Israeli guide. They would be seeing Bethlehem from afar but not going there!

Having stayed in Bethlehem area for a month, it seems to me that Berkeley California is probably more dangerous than Bethlehem. And Berkeley is not very dangerous! People in Bethlehem are generally friendly and welcoming. In fact one often hears random shouts of "WELCOME!" and "HOW ARE YOU?"

Occasionally one also hears shouts of "I LOVE YOU!" This was amusing since the shouter did not know what they were saying .... Apparently the Arabic word for 'like' is the same as for 'love'!

In Jericho the situation is also grim. The oldest continuously inhabited city in the world is now sprawling, dusty and dilapidated. The main road into the city from the south is closed by Israeli military. To get into the city you need to go through other Israeli checkpoints. There are signs of strife and military conflict around the city - buildings destroyed.

I stayed in a nice five star hotel with huge swimming pool, elegant bar and restaurant, impressive photographs and artwork ..... for $80. Sadly for the hotel, it was near empty.

I spoke with the general manager of the hotel. He had lived in the US but returned to his homeland. The Jericho Resort Hotel was built in the 1990's with joint Palestinian and German investment. It was doing very well and had good occupancy rates. Then the intifada broke out in 2000 followed by Israeli response and repression. After that there was essentially no business. For several years the hotel was closed. The German investors withdrew. Jericho Resort Hotel is now open again but struggling.

How do you develop a business when the town is controlled by checkpoints, tourists are steered away, and the local population (Palestinians) are not free to travel around their 'own' territory?




Military Checkpoint on the way into Jericho.