Bethlehem, West Bank ? Several thousand pilgrims celebrated Christmas Eve in the traditional birthplace of Jesus on Friday, welcoming the new thaw in Israeli-Palestinian relations and voicing hopes for peace in the Middle East.

Christian worshippers made their way to Manger Square, adjacent to the Church of the Nativity, on Friday. But under a steady rain, their numbers thinned throughout the evening.

Latin Patriarch Michel Sabbah, the senior Roman Catholic official in the Holy Land, celebrated midnight Mass in nearby St. Catherine’s Church. Hundreds of people packed the church, some forced to sit on the floor.

With interim Palestinian leader Mahmoud Abbas and other dignitaries looking on from the front row, Sabbah called on Israelis and Palestinians to put the violence of the past behind them.

“Palestine and Israel must conquer the evil of violence … and give birth to a new society of brothers and sisters in which no one controls the other, no one is occupied by the other, no one causes insecurity for the other, no one takes liberty from the other,” he said.

Many of the visitors to Manger Square were local Palestinians, and in the cold, bitter rain, shopkeepers lamented that business remained in the doldrums. The crowds were larger than in recent years, but far below Bethlehem’s heyday in the 1990s, when tens of thousands packed the city every Christmas season. Tourism is vital to Bethlehem’s economy.

“It’s better than any (recent) year, but it’s also bad,” said Rony Tabash, a 23-year-old shopkeeper. He said he had rung up a mere $40 in sales, compared to thousands of dollars of sales during the boom years.

Even so, Tabash, who spent the evening in his empty souvenir shop with relatives and friends, said he is hopeful things will get better. “Without hope, you cannot live,” he said.

The celebrations in Bethlehem came as Christians around the world marked the holiday.

The Latin Patriarch of Jerusalem Michel Sabbah blesses the Church of the Nativity in the West Bank town of Bethlehem. The Church is the site traditionally believed by most Christians as the birthplace of Jesus Christ.

All through the day, pilgrims descended on St. Peter’s Square, admiring the 100-year-old Christmas tree and a new fleet of Italian police mini cars deployed in the latest security measure for the already heavily protected piazza.

The celebratory atmosphere in Bethlehem was a welcome contrast to recent years. During the fighting, Bethlehem has been ringed by Israeli checkpoints and a huge separation barrier has been erected.

However, this Christmas Eve, troops handed out candy as they allowed pilgrims, including Palestinians from throughout the West Bank, to pass easily through the roadblocks.

Abbas arrived in a large convoy Friday evening, the first time a Palestinian leader had been permitted to join the celebrations since Israel prevented Yasser Arafat from attending in 2001, accusing him of advocating violence.

Since Arafat’s death on Nov. 11, there has been a marked warming of ties between Israel and the new Palestinian leadership.

The celebration gave an important boost to Abbas, who is seen as the front-runner in the Palestinian presidential election Jan. 9. He received a loud ovation when he arrived and was mobbed by Palestinians whenever he appeared in public. Abbas, a Muslim, also stopped at a mosque to pray.

“We ask God and wish that all the religions in this country will live in peace and security,” Abbas said. “I hope next year will be much better than the previous ones.”

Israeli Prime Minister Ariel Sharon sent Christmas greetings.

The Israeli army said about 5,000 people had come to Bethlehem, including nearly 300 Palestinians permitted to travel across Israel from the Gaza Strip.

One person who was barred from Bethlehem was Israeli nuclear whistleblower Mordechai Vanunu, who was detained at a checkpoint as he tried to travel to the city to attend Midnight Mass. Vanunu, a Jewish convert to Christianity, was released from an Israeli prison in April after completing an 18-year sentence for revealing secrets of Israel’s nuclear program to the Sunday Times newspaper in London.

Under the terms of his release, the former technician at the Israeli nuclear facility in the Negev desert town of Dimona was barred from leaving Israeli territory and contacting foreigners.

By Friday night, much of Manger Square — the stone-paved courtyard outside the Church of the Nativity, which Christians believe is built on the grotto where Jesus was born — had cleared out.

In the bitter rain, just a few dozen people, mostly Palestinian teenagers, wandered the streets, while tourists headed indoors to pray.

“I’m just delighted to be here,” said Chris Shepherd, 41, of Columbus, Ohio. “It’s absolutely incredible. I’ve just been overwhelmed by the friendliness of people.”