The town's economy is largely based on tourism and
related industries, such as the manufacture of olive-wood carvings. Agriculture
and work in Israel also play a significant role. The town had a prominent role
in the Palestinian national "Bethlehem 2000" project, as extensive
renovations of tourist sites, hotels and businesses, and historic sites were
carried out prior to the millennium celebrations. Social and economic development
were disrupted by the Al-Aqsa Intifada
