They have replaced their everyday tablecloths with special Christmas ones, and Sahar serves visitors special Christmas butter cookies.
And yet, they say, their position as Christians and as Palestinians is increasingly difficult in this town where Christianity began.
"Jesus was born here, and we pray in the most beautiful church in the world," Sahar said. "But the situation is just not good. I really hope things will get better because I really want to stay here."
If Issa had permission to enter Jerusalem, his trip from home to school would take less than an hour. But the circuitous route and frequent hold-ups at Israeli checkpoints means it can take him three hours to get to class. So he has rented a small apartment near campus, causing more financial strain on his family.
Christian Palestinians share the frustration of their Muslim neighbors over the continuing Israeli occupation of the West Bank and the lack of movement toward an independent Palestinian state. The controversial barrier that Israel is building in and around the West Bank runs right through the center of Bethlehem. On a section of the wall near the Israeli checkpoint, someone has written "Merry Christmas from the Bethlehem ghetto" in red and green spray paint.
Besides the economy, Adel Handel says Christians feel increasingly isolated even in Bethlehem. This town, which for hundreds of years was overwhelmingly Christian, now has a Muslim majority. The total Christian population in the West Bank has shrunk to about 2 percent. The Israeli government estimates the total population of Christians in Israel, the West Bank and Gaza at 210,000.
Handel says many of his close friends and extended family have emigrated. Each year, he says, more and more leave. Young Palestinians, like his niece Ragine, who is studying medicine in Canada, leave for university and seldom return.
"They say they're going for a better future for them and their children," he said. "Maybe we'll go, too. I don't really see a future here."
Israeli officials say they have eased restrictions to allow Christians from inside Israel and tourists from abroad to visit Bethlehem.
"The Ministry of Tourism, the Civil Administration and the Palestinian Authority are trying to ensure that all visits are smooth and give visitors a religious, spiritual and historical experience that will make them want to return," Israel tourism minister Stas Meseznikov said in a briefing to journalists.
Israeli soldiers serving in the West Bank have been given a special manual encouraging them to refrain from confrontation and to treat both tourists and local Palestinians with respect. For the first time, Israel has also issued 200 permits for Christians from Arab countries to enter the West Bank via the Allenby Bridge, the crossing point with Jordan. Some 7,000 Palestinians were also given permits to spend the night with relatives in Israel.
In the Palestinian financial and political capital of Ramallah, Palestinian President Mahmoud Abbas joined Palestinian Christians to light a large Christmas tree in the central square.
The top Roman Catholic clergyman in the Holy Land spoke about the stalemate in Israeli-Palestinian peace talks.
On Friday, Twal will lead a procession from Jerusalem to Bethlehem, joined by dozens of Palestinian scout groups and marching bands. In the evening, he will celebrate the traditional midnight mass, which is broadcast live around the world from the Church of the Nativity in Manger Square.
The Handels say Christmas Day itself will be quiet, and relatives traditionally visit each other's homes.
"I have 45 relatives I have to visit on Christmas," Adel Handel said. "If we don't go they will be insulted. So we go, stay for two minutes and go on to the next house. My kids will stay home to receive the relatives who come to our house. After Christmas I'll need a vacation."





