But for some, like Jerusalem resident Hisham Makhoul, spending Christmas in the holy city provided an "escape" from the Israel-Hamas war raging for more than 14 months in the Gaza Strip.
"What we're going through is very difficult and we can't completely forget about it," said Makhoul of the plight of Palestinians in the besieged territory, which is separated from the West Bank by Israeli territory.
"It's an escape... for a few days, a week or so, no more than this."
In central Bethlehem, the Terra Sancta Scout Troop, donning red scarves, marched down the main shopping street where vendors were selling nougat and shawarma.
The sweet sound of children singing Christmas carols filled the air, a sharp contrast to sombre messages on the banners they held: "We want life, not death", and "Stop the Gaza genocide now!"
For the second year in a row, Christmas festivities in Bethlehem are overshadowed by the war.
A large Christmas tree usually stands in Manger Square, opposite the Church of the Nativity which is built atop a cave where Christians believe Jesus was born more than 2,000 years ago.
But like last year, Bethlehem's municipality had decided to opt for modest celebrations out of respect for Palestinians suffering in Gaza.
Makhoul said it was still important for him to spend Christmas time in Bethlehem, which is located about 10 kilometres (six miles) from his home in Jerusalem, beyond the separation wall built by Israel.
"Although this year is very different from other years, it still means a lot to us to be here," said Makhoul, who was visiting with his partner.
Next to a statue of Jerome of Stridon, an early Christian priest who translated the Bible from Hebrew into Latin, Makhoul said he was glad to see "the happy kids around and Christian families celebrating".
Prayers for peace
For Christians in the Holy Land, who number about 185,000 in Israel and 47,000 in the Palestinian territories, prayer can offer solace and hope for a better future.
"We're going to pray and ask God to end our suffering, to give this part of the world the peace that we expect, the peace that Jesus brought to the world," said Anton Salman, the mayor of Bethlehem.
Archbishop Pierbattista Pizzaballa, the Latin patriarch of Jerusalem who led mass in Gaza on Sunday, shared a similar message of hope as he prepared to preside over midnight mass in Bethlehem.
"I just arrived yesterday from Gaza. I saw everything destroyed, poverty, disaster," he said.
"But I also saw life -- they don't give up. So you should not giver up either. Never," Pizzaballa added in a speech outside the Bethlehem Peace Center, a cultural venue.
"We are stronger, we belong to light, not to darkness," he said, standing beside a Palestinian flag.
"Next year we want to see the biggest Christmas tree ever".
With hopes for a ceasefire in Gaza on the rise in recent days, Bethlehem residents await calm that could see tourists return in 2025.
Christiana von der Tann, a German woman visiting her journalist daughter who is based in the region, said it was impossible for her to completely escape the conflict, even as a tourist.
"Last night, there was a rocket attack in Tel Aviv and it was a little scary," she said.
Air raid sirens sounded overnight in Israel's commercial hub, with the military saying it had intercepted a projectile fired from Yemen.
"We had to go to a shelter room," said von der Tann, who was travelling with her husband.
"That was a special experience. You don't forget that you are in a country at war".
