Bethlehem is a city located south of Jerusalem. The economy is primarily tourist-driven, peaking during the Christmas season, when Christians make pilgrimage to the Church of the Nativity. Rachel's Tomb, an important Jewish holy site, is located at the northern entrance of Bethlehem.
Early Christian traditions describe Jesus as being born in Bethlehem: in one, a verse in the Book of Micah is interpreted as a prophecy that the Messiah would be born there. The New Testament has two different accounts of the birth. In the Gospel of Luke, Jesus' parents live in Nazareth and travel for the Census of Quirinius to Bethlehem, where Jesus is born, after which they return home. The Gospel of Matthew mentions Bethlehem but not the census. Told that a 'King of the Jews' has been born in the town, Herod orders the killing of all the boys aged two and under in the town and surrounding area. Joseph, warned of by an angel of the Lord, flees to Egypt with his family; the Holy Family later settles in Nazareth.
The existence of early traditions of Jesus' birth in Bethlehem is attested by the Christian apologist Justin Martyr, who stated in his Dialogue with Trypho (c. 155–161) that the Holy Family had taken refuge in a cave outside of the town. Origen of Alexandria, writing around the year 247, referred to a cave in the town of Bethlehem which local people believed was the birthplace of Jesus. This cave was possibly one which had previously been a site of the cult of Tammuz.
Christmas rites are held in Bethlehem on three different dates: December 25 is the traditional date by the Roman Catholic and Protestant denominations, but Greek, Coptic and Syrian Orthodox Christians celebrate Christmas on January 6 and Armenian Orthodox Christians on January 19. Most Christmas processions pass through Manger Square, the plaza outside the Basilica of the Nativity. Roman Catholic services take place in St. Catherine's Church and Protestants often hold services at Shepherds' Fields.
Bethlehem celebrates festivals related to saints and prophets associated with Palestinian folklore. One such festival is the annual Feast of Saint George (al-Khadr) on 5–6 May. During the celebrations, Greek Orthodox Christians from the city march in procession to the nearby town of al-Khader to baptize newborns in the waters around the Monastery of St. George and sacrifice a sheep in ritual. The Feast of St. Elijah is commemorated by a procession to Mar Elias, a Greek Orthodox monastery north of Bethlehem.