Nazareth faces economic collapse as much-needed tourism dries up due to war

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Nazareth Mayor Ali Salam believes that Israel’s largest Arab city – known for being the childhood home of Jesus – is on the brink of economic and societal collapse.

“Things are falling apart. The situation is deteriorating, and we cannot continue like this,” the mayor said in a recent interview. “The economic situation is dire. With the school year starting on September 1, families need to buy books and supplies, but many cannot afford them. We need a larger budget to support them. We also need to cover the monthly salaries of school staff, which range from 10,000 shekels (over $2,600) to 15,000 shekels ($4,000). This will be a significant challenge.”

Salam blamed the collapse not only on the lack of tourists but also on budget disparities between Arab and Jewish cities.

“The central government doesn’t provide us with the same economic support it gives Jewish cities,” Salam claimed. “My budget is 500 million shekels [$135 million], not the 800 million shekels [$213 million] a Jewish city would receive. If this were a Jewish city, the budget would be more. But because we are an Arab city, made up of Muslims and Christians, we are treated differently. We still feel treated as second-class citizens – not just because we are Arabs, but because we do not receive the economic resources we deserve.”

Most businesses in Nazareth have closed because tourism has dried up.

“In the Old City, everything is closed due to the complete halt in tourism. Even here, we are struggling. Only half of the municipal staff is working today, and we need to figure out how to pay their salaries,” the mayor said.

The city is also struggling with a wave of mafia crime led predominantly by Muslim mafia gangs who are targeting Christian store owners and extorting exorbitant protection fees amounting to roughly $13,500 each month.

Despite efforts by Israel’s Shin Bet security agency and an increase in police patrols, the situation has only worsened.

In March, Peter Roshrash, a veteran police inspector, said the situation has become similar to the Wild West.

“In Nazareth, the mafia will shoot at the stores, then tell them they need ‘chawa’ [protection money]. It’s like the Wild West,” Roshrash said.

The crime wave has led to an exodus of Christians from the city, which was 80% of the Nazareth population when the State of Israel gained independence in 1948. Since then, the Christian population has dwindled to just 20%. Many Christians have either moved to Jewish neighborhoods or emigrated to Western countries.

Last year, Nazareth was one of the cities hardest hit by criminal violence, according to the Abraham Initiatives, a nonprofit group that works for Jewish-Arab equality in Israel.

“When you have less investments and less employment and more young people who have poor education and no alternative offered by the city, it is common to see them join criminal gangs, which give them money to work for them, even for killing,” said Ameer Bisharat, CEO of the National Committee of Heads of Arab Local Authorities.