Christian pilgrims celebrates Christmas Eve in Bethlehem

A Palestinian dressed as Santa Claus holds balloons at Manger Square . (AP)

Several thousand Christian pilgrims flocked to Bethlehem for Christmas Eve celebrations at the traditional birthplace of Jesus, lifting spirits after a year of conflict and failed peace efforts.

The central Manger Square was decked out in white and yellow lights and a towering Christmas tree.

On a cool, clear night, there was a carnival atmosphere as vendors sold special sesame sweets, watches, and balloons in the shape of cartoon characters.

Scout troops played bagpipes, horns and drums, and bands from around the world performed on a stage, singing Christmas carols and original Christmas rock ballads, mostly in English.

A recording of Feliz Navidad blasted through the speakers, too. A Palestinian host welcomed members of Gaza's tiny Christian community, who were permitted to cross through Israel to the West Bank, eliciting whistles and applause.

Simon Bassett, a British tourist, came to Bethlehem with his wife and three-year-old daughter.

"We're very happy to share Christmas with the Palestinian people and we hope that the peace and joy that comes with Christmas will spread from this place to the whole earth and that the people of all races will learn to live in harmony together," he said.

The celebrations brought a boost of holiday cheer to the area after a difficult year.

Israeli-Palestinian peace talks collapsed last spring, and Israel fought Palestinian militants in the Gaza Strip during a 50-day war over the summer.

Elsewhere in the region, the Middle East's dwindling Christian community has suffered persecution at the hands of Islamic State extremists.

For residents of the Palestinian town of Bethlehem, an independent state is as elusive as ever.

The Church of the Nativity, built over the grotto that Christians believe is the site of Jesus' birth, was flanked by the towering Christmas tree and a large poster in Arabic and English that read: "All I want for Christmas is justice."

Palestinian tourism minister Rula Maayah said."Our message this Christmas is a message of peace like every year, but what we added this year is that all we want from Christmas is justice.

"Justice for our people, justice for our case and the right to live like all other people in the world in our independent state without the occupation."