'This is the worst year ever': Drop in tourists visiting Bethlehem over Christmas due to recent unrest

Perched on a chair outside his small gift shop in manger square Bethlehem, 70-year-old Abu Amjad looks tired and weary.

"Rosaries!" he calls out to a passing group of Russian tourists who ignore his advances: "Prayer cards!".

"I've been here for 47 years and this is the worst year ever," Mr Amjad tells me sadly.

"People are afraid to come because of the problems.

"They might come for Christmas day but in general there is not much tourism."

This area around the Church of Nativity is normally heaving at this the time of year with tourists from around the world.

But this year tourist numbers are down 11 per cent and many business owners around town say they are suffering.

"Since the second intifada this is the worst time that we have seen," said Johnny Kattan, hotel manager at Bethlehem's five star Jacir Palace.

The 100-year-old hotel was once a symbol of Bethlehem's tourism potential, but today it reflects the city's gloomy mood.

"Usually we are overbooked at Christmas and we don't know what to do with the guests and where to send them," Mr Kattan said.

"But this year we are a bit over 50 per cent for Christmas."

On the main street, just outside the hotel, clashes regularly erupt between young Palestinians and Israeli soldiers at the local checkpoint.

The hotel is often soaked in teargas and guests have to use the back entrance.

"From one point I sympathise," Mr Kattan said.

"From the other point it's a pity that such young people are getting hurt, are losing their life. It's really a pity."

Israel's increased security 'necessary': Government

More than 100 Palestinians have been killed since this latest unrest began.

More than half of those have been alleged assailants killed while trying to attack Israelis — while many others have been shot dead by Israeli forces during protests like the ones outside the Jacir Palace.

One of Johnny Kattan's young employees, a 27-year-old waiter, was shot dead out the front of the hotel during clashes in October.

"He was not on duty at that time," he said.

"It's a pity. He was a very good employee."

After months of violent attacks by Palestinians that has seen 21 Israelis killed, Israeli government spokesperson Emmanuel Nahshon makes no apologies for what he describes as "necessary" increased security measures.

"If we are facing violence and we are facing violence time and again then of course we need to take the necessary precautions and necessary measures and this includes also an Israeli military presence," Mr Nahshon said.

"The protection is not only for Israelis it is also, by the way, for the many tourists who come here to Israel and do not want to become a victim of Palestinian violence."

Israel is 'confiscating the land': Priest

The Israel separation barrier now surrounds much of this historically important city.

But the Catholic Church has been leading protests here against a new section of the Israeli security barrier being built in Beit Jala, a suburb of Bethlehem.

"We don't know where is the beginning and where is the end," Father Akram Hijazin said, motioning at uprooted olive trees and earthworks being prepared for the new wall.

Father Hijazin has been a thorn in the side of Israeli authorities, protesting against the new wall.

Not long after we arrived at the building site, Israeli soldiers quickly arrive to try and stop us taking photos and video.

"They don't want us to show the world what's going on, on the ground," Father Aktham said.

Israel says this wall is needed for security purposes but Father Aktham says it is a land grab.

"They are confiscating the land," he said, glaring at the Israeli soldiers guarding the building site.

According to the United Nations more than 80 per cent of Bethlehem's land is now in what is called 'area C' — an area under total Israeli control.

"The whole world is watching silently to what takes place in Bethlehem," Mayor Vera Baboun said.

Ms Baboun says she just received a new order two days ago from Israel to confiscate 25 more acres of Bethlehem's land for Israeli military use.

"There is an abnormality taking place in the city of peace," she said.

"What's going on, on the ground is completely abnormal."